The Best Value Funds

After taking the lead briefly earlier in 2025, value stocks find themselves in a familiar position as the second quarter winds down: lagging behind growth stocks. The Morningstar US Growth Index has outperformed the Morningstar US Value Index by 2 full percentage points so far in 2025. Growth stocks have a commanding performance lead on value stocks over the past decade.

Should Investors Buy Value Stock Funds Today?

Investors who own core stock mutual funds or exchange-traded funds—especially those tracking a broad-market index such as the S&P 500 or Wilshire 5000 Index—already have exposure to value stocks. They’re diversified. It’s unlikely they need to add more value to their portfolios, as they already have plenty.

However, some investors may think growth stocks are due to cool and value stocks are due to outperform, and they’d like to tilt their portfolios toward that style. For such investors, there are many fine value stock exchange-traded funds and mutual funds to choose from. Here, we’re spotlighting those that land in the US large-value, mid-value, or small-value Morningstar Categories and have at least one share class that earns the top Morningstar Medalist Rating of Gold. (We expect such highly rated funds to outperform over a full market cycle.)

The Best Value ETFs and Mutual Funds to Buy in 2025

These ETFs and mutual funds focus on value stocks and had at least one share class that earned top Morningstar Medalist Ratings of Gold that’s 100% analyst driven as of June 30, 2025.

1. American Funds American Mutual AMRMX
2. Brandes U.S. Value ETF BUSA
3. Capital Group Conservative Equity ETF CGCV
4. Capital Group Dividend Value ETF CGDV
5. Diamond Hill Large Cap DHLYX
6. Dimensional US Targeted Value ETF DFAT
7. Dodge & Cox Stock DODGX
8. Fidelity Equity-Income FEQIX
9. Harbor Mid Cap Value HAMVX
10. John Hancock Disciplined Value Mid Cap JVMIX
11. LSV Small Cap Value LSVQX
12. MFS Mid Cap Value MVCJX
13. MFS Value MEIJX
14. Natixis Funds Trust II Oakmark NEOYX
15. Oakmark U.S. Large Cap ETF OAKM
16. Oakmark Fund OAKMX
17. Schwab US Dividend Equity ETF SCHD
18. SPDR Russell 1000 Yield Focus ETF ONEY
19. Vanguard High Dividend Yield Index/ETF VHYAX VYM
20. Vanguard Mid-Cap Value Index/ETF VMVAX VOE
21. Vanguard Russell 1000 Value Index/ETF VRVIX VONV
22. Vanguard S&P Mid-Cap 400 Value Index VMFVX
23. Vanguard S&P Small-Cap 600 Value Index VSMVX
24. Vanguard S&P 500 Value Index/ETF VSPVX VOOV
25. Vanguard Small-Cap Value Index/ETF VSIAX VBR
26. Vanguard Value Index/ETF VVIAX VTV
27. Victory Sycamore Established Value VEVRX

How Do Value Mutual Funds and ETFs Work?

Value funds are bargain-hunters: They all want to buy stocks below what they’re worth and then hold on as those stocks (hopefully) reach fair value. They’re unwilling to pay a premium to invest in a stock, no matter how appealing its prospects.

However, there are many different ways that value stock managers invest. Some take what’s known as a deep-value approach, focusing on fundamental valuation benchmarks, such as price/earnings, price/book, or price/sales, and little else. Others blend low valuations with a quality screen, thereby avoiding stocks of less profitable and more troubled businesses. Some managers will go where the values are, no matter the size of the companies, while others will skew toward the stocks of large companies or, at the other end of the spectrum, the stocks of smaller companies.

Other differences exist, too. Some value funds, for instance, place a greater emphasis on dividend-paying stocks, while other value funds don’t have dividends on the brain—income is secondary, if it’s considered at all. Some value funds maintain compact portfolios consisting of 50 or so securities, while others own hundreds of stocks. Those preferences can lead to different performance and risk profiles. And of course, some value funds are led by managers who actively pick stocks while other value funds simply index.

The bottom line: Do your research before you buy. Our Medalist Ratings are just a starting point.

How to Find Value Funds for the Long Term

Given their high Morningstar Medalist Ratings, we expect the top-rated value stock funds on our list to outperform over a full market cycle.

That being said, investors may want to expand their search for value funds beyond this list, using parameters that matter to them. Here are a few additional ways to find value ETFs and mutual funds to investigate further.

• Some investors may prefer a list of top-rated funds that invest in value stocks around the globe, not just in US names. Using the Morningstar Investor screener, select Investment Type (either ETF or Mutual Fund), scroll down to Criteria to find the Morningstar Category drop-down menu, and select Global Large-Stock Value (if you want funds that invest in both international and US large-cap value stocks) or Foreign Large Value and Foreign Small/Mid Value (if you want to exclude US value stocks). Then, under Ratings, choose Gold for the Morningstar Analyst Rating.
• Those who’d like to expand their list to include value stock mutual funds and ETFs that earn Silver and Bronze Medalist Ratings can review our Large Value Medalist Funds, Mid-Cap Value Medalist Funds and Small Value Medalist Funds lists.
• Want to find a complete list of value stock ETFs or mutual funds available today, not just those with our highest Analyst Ratings? Using the Morningstar Investor screener tool, select Investment Type (either ETF or Mutual Fund) and choose the Morningstar Category—Large Value, Mid-Cap Value, or Small Value—that you prefer. Or choose all three.