WisdomTree U.S. Value Fund (WTV): Among the Top Deep Value Stocks ETFs

Hamna Asim

Wed, Apr 9, 2025, 8:56 AM 4 min read

This year, growth stocks are largely overvalued, trading at massive premiums compared to the riotous tech bubble of 2021. This is why Morningstar suggests that investors should underweight growth stocks in their portfolios and focus on value stocks instead. As of March 24, 2025, the Morningstar US Market Index saw the highest losses in artificial intelligence stocks, while undervalued stocks gained. Value stocks are trading at an impressive 13% discount to fair value. Thus, Morningstar advises investors to pick up small-cap stocks, which are trading at an 18% discount to fair value, compared to large and mid-cap equities, which trade at the same discount as the broader market.

William C. Nygren, partner, portfolio manager, and chief investment officer at Harris Associates, believes that it is an attractive time to be a value investor in this day and age because of the large spread in valuations between a few tech giants that drive the broader market and everything else. It is a golden time for value investors because the market is so concentrated, which means that cheap stocks are spread all across the other industries, allowing a unique opportunity to put together an investment portfolio comprising low P/E stocks. According to Nygren, it's not just bank and oil stocks that look cheap right now. Consumer durables, healthcare, and media companies are also attractively valued. Since a value investor focuses on buying stocks that the market isn’t favoring at the moment, they get a much lower price. A value investor has to brave the odds, step in when others waver, and patiently wait for the market to reprice so their portfolio can thrive.

Similarly, veteran value investor Joel Greenblatt of Gotham Asset Management acknowledges that while value stocks have underperformed compared to their growth counterparts over the last two decades, investors who keenly observe and play the market can certainly prevail and outperform the broader market. Greenblatt’s Gotham Asset Management has returned a positive spread for the last three years, and the value investor noted that for a couple of mega stocks to consistently outperform the broader market is rather “abnormal”, possibly hinting that the market will reset its course.

WisdomTree U.S. Value Fund (WTV): Among the Top Deep Value Stocks ETFs

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Our Methodology

We curated our list of the best deep value stocks ETFs by choosing consensus picks from multiple credible websites. We have mentioned the 5-year share price performance of each ETF as of April 6, 2025, ranking the list in ascending order of the share price performance. Additionally, we analyzed the top holdings of these ETFs to give investors deeper insights. Hedge fund sentiment from Insider Monkey’s Q4 2024 database is also included.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

WisdomTree U.S. Value Fund (NYSE:WTV)

5-Year Share Price Performance as of April 6: 107.39%

WisdomTree U.S. Value Fund (NYSE:WTV) invests in US companies that are high quality and offer strong shareholder yields. The fund promotes long-term investing and focuses on a disciplined, model-based approach. As of April 4, 2025, WTV offers an expense ratio of 0.12% and has total assets worth nearly $760 million. The ETF has a 30-day SEC yield of 1.97%, and it was established on February 23, 2007.

American tobacco giant, one of the top deep value stocks on Wall Street, Altria Group, Inc. (NYSE:MO) is the largest holding in WisdomTree U.S. Value Fund (NYSE:WTV)’s portfolio. On February 27, Altria declared a quarterly dividend of $1.02 per share, set to be distributed on April 30, to shareholders on record as of March 25. Altria Group, Inc. (NYSE:MO) has raised its dividend payout for 55 consecutive years.

According to Insider Monkey’s fourth quarter database, 47 hedge funds held long positions in Altria Group, Inc. (NYSE:MO), compared to 32 funds in the earlier quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital was the biggest stakeholder of the company, with 22.2 million shares valued at $1.16 billion.

Overall, WTW ranks 3rd among the Deep Value Stocks ETFs: Top 10 Picks. While we acknowledge the potential of deep value ETFs, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WTW but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

Disclosure: None. This article is originally published at Insider Monkey.

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