Wall Street has been in a wavering mode lately, thanks to the concerns related to rich artificial intelligence (AI) valuations. Investors grew increasingly cautious amid mounting economic uncertainty and stretched market valuations.

Concerns over inflated stock prices, mainly in AI-related momentum names, have kept Wall Street under pressure. Venture capitalist David Sacks, who is serving as President Donald Trump’s artificial intelligence and crypto czar, also said on Nov. 6, 2025, that there will be “no federal bailout for AI,” as quoted on CNBC.

Sacks’ remarks came on the heels of OpenAI CFO Sarah Friar’s statement on Nov. 5, 2025 that the company looks to build an ecosystem involving private equity, banks, and a federal “backstop” or “guarantee” to help fund its infrastructure investments, the same CNBC article indicated.

Government Shutdown

With the government shutdown ongoing, there is a shortage of official economic data. This is leaving the Fed to assess economic conditions and adopt policy decisions with limited understanding.

Meanwhile, according to Challenger, Gray & Christmas, corporate layoff announcements witnessed a 183.1% monthly spike in October, marking the sharpest jump in over two decades, as quoted on Reuters. Cost-cutting and AI-driven restructuring have been held mainly responsible for these corporate decisions.

Wall Street Valuation Too Ripe?

The U.S. stock market has surged about 36% since the April lows. But it’s now facing a warning light from one of the moderately famous indicators. The so-called “Buffett Indicator” has climbed to levels last seen before the 2022 bear market, per Bloomberg, as quoted on Yahoo Finance.

The metric compares the total market capitalization of U.S. stocks, now hovering around $72 trillion, to the nation’s gross domestic product (GDP). Despite GDP recently growing at its fastest clip in nearly two years, the ratio shows that the stock market’s value has jumped to more than twice the size of the economy, indicating a likely overheating, the aforementioned article noted.

Time to Look Beyond Growth & Tap Value ETFs?

Investors should note that most growth ETFs house tech stocks or the ones currently driving Wall Street. Hence, with AI valuation fears taking the broader market in its grip, a look at value investing makes sense.

Value ETFs tend to be better bets in an uncertain environment. Value funds offer exposure to a wide variety of stocks with value characteristics, such as low P/B, low P/S and low P/E ratios.

Value ETFs in Focus

ARS Focused Opportunity Strategy ETF (AFOS Quick QuoteAFOS - Free Report) – Up 3.8% Past Month

Investing in the ARS Focused Opportunities Strategy ETF (AFOS Quick QuoteAFOS - Free Report) offers a way to target companies positioned to benefit from durable secular trends and outpace inflation. The fund charges 45 bps in fees.

iShares Morningstar Value ETF (ILCV Quick QuoteILCV - Free Report) – Up 1.1% Past Month

The underlying Morningstar US Large-Mid Cap Broad Value Index comprises large and mid-capitalization U.S. equities that exhibit value characteristics. The fund charges 4 bps in fees.

iShares MSCI USA Value Factor ETF (VLUE Quick QuoteVLUE - Free Report) – Up 2.2% Past Month

The underlying MSCI USA Enhanced Value Index is based on a traditional market capitalization-weighted parent index, the MSCI USA Index, which includes U.S. large and mid-capitalization stocks. The fund charges 15 bps in fees.

SEI Enhanced U.S. Large Cap Value Factor ETF (SEIV Quick QuoteSEIV - Free Report) – Up 1.6% Past Month

The SEI Enhanced U.S. Large Cap Value Factor ETF seeks to provide long-term capital appreciation by investing primarily in U.S. common stocks with lower prices relative to fundamental valuation characteristics. The fund charges 15 bps in fees.

SPDR Dow Jones Industrial Average ETF (DIA Quick QuoteDIA - Free Report) – Up 0.7% Past Month

The Dow Jones Industrial Average is composed of 30 blue-chip U.S. stocks. The fund charges 16 bps in fees and yields 1.43% annually.