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Value investing can offer stability and lower volatility amid uncertain market conditions.
Value investors look for fundamentally strong stocks trading at attractive valuations.
ETFs like VTV, IVE and SPYV can help investors implement value investing.
The 2026 market environment has been marked by persistent economic headwinds, weakening investor confidence and a shift toward more cautious positioning. Elevated volatility is expected to remain a key concern for markets as investors navigate a growing list of challenges, ranging from policy uncertainty and persistent geopolitical tensions to a ballooning U.S. national debt.
However, the market’s performance may paint a different picture. The S&P 500 gained 1.06% on Thursday, bringing its gains over the past five trading sessions and the past month to 0.16% and 1.53%, respectively.
Still, the market’s resilience does not mean that risks have disappeared. A complex geopolitical backdrop and persistent economic uncertainty could fuel near-term volatility and prompt investors to adopt an increasingly cautious stance. In particular, uncertainty surrounding the Fed’s policy path and the lack of clarity over future rate decisions are contributing to investor nervousness. An uncertain inflation outlook is adding to these concerns, further complicating the market environment and keeping investors cautious.
According to Peter Oppenheimer, chief global equity strategist at Goldman Sachs, stock gains are likely to moderate over the next 12 months, suggesting that investors should expect lower returns from current levels, as quoted on Yahoo Finance. According to the article, the global government bond sell-off has intensified sharply, raising concerns among investors. At the same time, rising oil prices amid the Middle East conflict are adding to inflationary pressures, putting pressure on stocks.
Even if markets continue to shrug off these concerns, the prospect of a downturn may be enough to push risk-conscious investors toward more defensive strategies. Against this backdrop, value investing could offer a prudent way to seek stability while remaining invested in equities.
Value Investing Explained
Value investing focuses on purchasing stocks that are undervalued, based on some fundamental analysis, relative to their intrinsic value. Value investors actively seek out stocks currently overlooked by the market and aim to profit by purchasing them at a discount compared to their intrinsic value.
The strategy is built on patience. Investors buy stocks they believe are undervalued and hold them for the long term, anticipating that the market will eventually recognize their true worth and drive their prices higher, potentially generating significant returns for investors.
The performance of the S&P 500 Value Index underscores the market uncertainty that has defined 2026, as investors have grown increasingly cautious. The index has gained around 17.7% over the past year and 12.1% year to date, while advancing around 4.7% quarter to date.
The recent strength of value stocks suggests that investors may be increasingly seeking opportunities in the value segment amid ongoing market uncertainty. In contrast, the S&P 500 Growth Index has gained only around 2.2% quarter to date, pointing to a potential shift in investor preference from growth toward value.
While value stocks may appear less attractive than growth stocks in terms of potential upside, they are generally viewed as more stable and less volatile. This makes them an attractive option for investors seeking more risk-managed equity exposure while navigating an uncertain market environment.
Additionally, adopting a value investing approach can also serve as an effective diversification tool for investors looking to strengthen portfolio resilience.
Simplifying Value Investing With ETFs
Value investing can be a time-consuming and complex process, requiring investors to carry out careful financial analysis and judgment in determining a stock’s intrinsic value. Investors can leverage value investing through ETFs, which offer an easy and accessible way to follow the strategy. By providing diversified exposure to value-oriented stocks, ETFs simplify implementation and reduce the complexity of individual stock selection.
Value ETFs can help add resilience to portfolios during periods of market volatility, thanks to their exposure to more stable and fundamentally strong companies. Value investing is best suited for investors with a medium- to long-term horizon, where patience and compounding can play a greater role.
Below, we have highlighted a selection of value ETFs that make it easier to implement a value investing strategy.
Vanguard Value ETF seeks to track the performance of CRSP U.S. Large Cap Value Index. The fund charges an annual fee of 0.03% and has a dividend yield of 1.80%.
Vanguard Value ETF has gathered an asset base of $191.45 billion and has a one-month trading average of 2.49 million shares. The fund has Zacks ETF Rank #1 (Strong Buy).
iShares Russell 1000 Value ETF seeks to track the performance of Russell 1000 Value Index. The fund charges an annual fee of 0.18% and has a dividend yield of 1.35%.
iShares Russell 1000 Value ETF has gathered an asset base of $83.86 million and has a one-month trading average of 1.44 million shares. The fund has a Zacks ETF Rank #1.
iShares S&P 500 Value ETF seeks to track the performance of the S&P 500 Value Index. The fund charges an annual fee of 0.18% and has a dividend yield of 1.49%.
iShares S&P 500 Value ETF has gathered an asset base of $50.06 billion and has a one-month trading average of 513,000 shares. The fund has a Zacks ETF Rank #2 (Buy).
State Street SPDR Portfolio S&P 500 Value ETF (SPYV - Free Report)
State Street SPDR Portfolio S&P 500 Value ETF seeks to track the performance of the S&P 500 Value Index. The fund charges an annual fee of 0.04% and has a dividend yield of 1.64%.
State Street SPDR Portfolio S&P 500 Value ETF has gathered an asset base of $36.59 billion and has a one-month trading average of about 1.78 million shares. The fund has a Zacks ETF Rank #2.
Schwab U.S. Large-Cap Value ETF seeks to track the performance of Dow Jones U.S. Large-Cap Value Total Stock Market Index. The fund charges an annual fee of 0.04% and has a dividend yield of 1.76%.
Schwab U.S. Large-Cap Value ETF has gathered an asset base of $15.66 billion and has a one-month trading average of about 3.07 million shares. The fund has a Zacks ETF Rank #2.
View the Zacks #1 Rank List
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A Guide to Investing in Value ETFs
Key Takeaways
The 2026 market environment has been marked by persistent economic headwinds, weakening investor confidence and a shift toward more cautious positioning. Elevated volatility is expected to remain a key concern for markets as investors navigate a growing list of challenges, ranging from policy uncertainty and persistent geopolitical tensions to a ballooning U.S. national debt.
However, the market’s performance may paint a different picture. The S&P 500 gained 1.06% on Thursday, bringing its gains over the past five trading sessions and the past month to 0.16% and 1.53%, respectively.
Still, the market’s resilience does not mean that risks have disappeared. A complex geopolitical backdrop and persistent economic uncertainty could fuel near-term volatility and prompt investors to adopt an increasingly cautious stance. In particular, uncertainty surrounding the Fed’s policy path and the lack of clarity over future rate decisions are contributing to investor nervousness. An uncertain inflation outlook is adding to these concerns, further complicating the market environment and keeping investors cautious.
According to Peter Oppenheimer, chief global equity strategist at Goldman Sachs, stock gains are likely to moderate over the next 12 months, suggesting that investors should expect lower returns from current levels, as quoted on Yahoo Finance. According to the article, the global government bond sell-off has intensified sharply, raising concerns among investors. At the same time, rising oil prices amid the Middle East conflict are adding to inflationary pressures, putting pressure on stocks.
Even if markets continue to shrug off these concerns, the prospect of a downturn may be enough to push risk-conscious investors toward more defensive strategies. Against this backdrop, value investing could offer a prudent way to seek stability while remaining invested in equities.
Value Investing Explained
Value investing focuses on purchasing stocks that are undervalued, based on some fundamental analysis, relative to their intrinsic value. Value investors actively seek out stocks currently overlooked by the market and aim to profit by purchasing them at a discount compared to their intrinsic value.
The strategy is built on patience. Investors buy stocks they believe are undervalued and hold them for the long term, anticipating that the market will eventually recognize their true worth and drive their prices higher, potentially generating significant returns for investors.
The performance of the S&P 500 Value Index underscores the market uncertainty that has defined 2026, as investors have grown increasingly cautious. The index has gained around 17.7% over the past year and 12.1% year to date, while advancing around 4.7% quarter to date.
The recent strength of value stocks suggests that investors may be increasingly seeking opportunities in the value segment amid ongoing market uncertainty. In contrast, the S&P 500 Growth Index has gained only around 2.2% quarter to date, pointing to a potential shift in investor preference from growth toward value.
While value stocks may appear less attractive than growth stocks in terms of potential upside, they are generally viewed as more stable and less volatile. This makes them an attractive option for investors seeking more risk-managed equity exposure while navigating an uncertain market environment.
Additionally, adopting a value investing approach can also serve as an effective diversification tool for investors looking to strengthen portfolio resilience.
Simplifying Value Investing With ETFs
Value investing can be a time-consuming and complex process, requiring investors to carry out careful financial analysis and judgment in determining a stock’s intrinsic value. Investors can leverage value investing through ETFs, which offer an easy and accessible way to follow the strategy. By providing diversified exposure to value-oriented stocks, ETFs simplify implementation and reduce the complexity of individual stock selection.
Value ETFs can help add resilience to portfolios during periods of market volatility, thanks to their exposure to more stable and fundamentally strong companies. Value investing is best suited for investors with a medium- to long-term horizon, where patience and compounding can play a greater role.
Below, we have highlighted a selection of value ETFs that make it easier to implement a value investing strategy.
Vanguard Value ETF (VTV - Free Report)
Vanguard Value ETF seeks to track the performance of CRSP U.S. Large Cap Value Index. The fund charges an annual fee of 0.03% and has a dividend yield of 1.80%.
Vanguard Value ETF has gathered an asset base of $191.45 billion and has a one-month trading average of 2.49 million shares. The fund has Zacks ETF Rank #1 (Strong Buy).
iShares Russell 1000 Value ETF (IWD - Free Report)
iShares Russell 1000 Value ETF seeks to track the performance of Russell 1000 Value Index. The fund charges an annual fee of 0.18% and has a dividend yield of 1.35%.
iShares Russell 1000 Value ETF has gathered an asset base of $83.86 million and has a one-month trading average of 1.44 million shares. The fund has a Zacks ETF Rank #1.
iShares S&P 500 Value ETF (IVE - Free Report)
iShares S&P 500 Value ETF seeks to track the performance of the S&P 500 Value Index. The fund charges an annual fee of 0.18% and has a dividend yield of 1.49%.
iShares S&P 500 Value ETF has gathered an asset base of $50.06 billion and has a one-month trading average of 513,000 shares. The fund has a Zacks ETF Rank #2 (Buy).
State Street SPDR Portfolio S&P 500 Value ETF (SPYV - Free Report)
State Street SPDR Portfolio S&P 500 Value ETF seeks to track the performance of the S&P 500 Value Index. The fund charges an annual fee of 0.04% and has a dividend yield of 1.64%.
State Street SPDR Portfolio S&P 500 Value ETF has gathered an asset base of $36.59 billion and has a one-month trading average of about 1.78 million shares. The fund has a Zacks ETF Rank #2.
Schwab U.S. Large-Cap Value ETF (SCHV - Free Report)
Schwab U.S. Large-Cap Value ETF seeks to track the performance of Dow Jones U.S. Large-Cap Value Total Stock Market Index. The fund charges an annual fee of 0.04% and has a dividend yield of 1.76%.
Schwab U.S. Large-Cap Value ETF has gathered an asset base of $15.66 billion and has a one-month trading average of about 3.07 million shares. The fund has a Zacks ETF Rank #2.