Five Value ETFs To Consider

This volatile market is certainly enough to try the patience of conservative investors, but a big broader market decline like the one we're seeing today opens some doors for bargain hunting, particularly in the value ETF universe. The typical value ETF is going to be chock full of widely held, familiar stocks that your grandfather love, but names that should also be embraced by investors of all stripes. This genre of ETFs is also perfect for the investor that isn't too keen on stock-picking and is simply looking to build a low-cost, well-diversified portfolio. Take a look at these five value ETFs. 1) PowerShares Dynamic Large Cap Value Portfolio PWV: This 50-stock ETF has almost $424 million in assets under management and will get you involved with stocks that your grandfather would recommend. Think Pfizer PFE, AT&T T and plenty of other Dow components. PWV is by no means a “bad” ETF, but the concern is an expense ratio of 0.63%, which hampers the value element a bit. 2) Vanguard Value Trust VTV: VTV is one of several ETFs that shine a light on why Vanguard has become such a major ETF player in a short amount of time. The ETF holds over 400 stocks (typical wide exposure for a Vanguard ETF) and its expense ratio of just 0.12% is lower than 90% of its peers, the firm's Web site says. AT&T, Pfizer, Exxon Mobil XOM and other usual value suspects are found among the top-10 holdings, but the quibble is here VTV's roughly 25% exposure to financials. 3) First Trust Strategic Value Index Fund FDV: This is another curious 50-stock member of our list. FDV's lineup differs from PWV and VTV as no Dow stocks are found among FDV's top-10 holdings. Four commodities-related name are found among the top-10 FDV constituents, which given the run up in that group, it's arguable that there's value to be had there. A weight of almost 32% to financials and an expense ratio of 0.65% might lead some investors to think twice. 4) Shares Russell 3000 Value Index Fund IWW: No, IWW doesn't hold 3,000 stocks, but it sure holds a lot (almost 1,950). To its credit, IWW doesn't give a weight above 2.62% to any individual name and while it has plenty of the stocks you'd find in PWV and VTV, we like the 1.85% weight to Berkshire Hathaway BRK class “B” shares. The expense ratio of 0.26% is quite favorable. 5) First Trust Value Line Dividend Index Fund FVD: Sporting a yield of almost 2.5%, FVD and its 160 stocks offer double-digit exposure to five different sectors (utilities, consumer staples, financials, industrials and healthcare). No one stock gets a weight of more than two-thirds of a percent and while plenty of FVD's holdings are found elsewhere, the ETF does have some interesting surprises in terms of constituents. The 0.7% expense ratio is something to consider though.