With 2025 just weeks away, many investors are likely revisiting their portfolios. A soft landing appears more likely than ever, with several rate cuts already in the books. Still, with uncertainty ahead, finding the right investment strategy is a key goal in the interim. While at first glance, a growth approach might appear to be the right move, a value strategy like the T. Rowe Price Value ETF (TVAL) might offer a particular appeal.
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TVAL charges 33 basis points for its active approach. The active value ETF leans on T. Rowe Price’s fundamental research capabilities to engage in bottom-up stock selection. In doing so, its managers seek stocks underrated by the market, screening for metrics like dividend yield and undervalued assets. It also looks at factors like book value, earnings, sales, and more. The active value ETF has returned 29.4% over one year, per T. Rowe Price data.
What kind of stocks, then, does the fund target? For example, TVAL holds Chubb Ltd. (CB) as one of its top holdings per ETF Database data. CB offers domestic and casualty insurance with operations in 54 countries. Per YCharts data, the firm has produced 20.76% five-year diluted EPS growth as of November 27. CB has significantly outperformed the S&P 500 Total Return index over the last three years, according to YCharts data.
The active value ETF also holds Fiserv, Inc. (FI) as one of its largest holdings. The firm, which offers finance services such as loan processing and electronic transfer services, has returned 67.46% YTD, per YCharts. FI’s 25.13 forward price-to-earnings ratio appeals, as well. Finally, the ever-present Walmart Inc. (WMT) sits in the fund’s holdings, as well. WMT has returned 75.4% YTD, per YCharts, with 20.45% five-year diluted EPS growth.
Those three firms represent appealing value names that fit in TVAL’s remit. For those looking for firms poised to potentially benefit from a completed soft landing next year, TVAL can intrigue.
For more news, information, and strategy, visit the Active ETF Channel.
