Capital Group Dividend Value ETF: A Low-Volatility Value Fund with Strong Team and Strategy

Three value ETFs for 2025 are highlighted: Capital Group Dividend Value ETF (CGDV), Invesco RAFI US 1000 ETF (PRF), and Dimensional International Value ETF (DFIV). CGDV is an actively managed fund with a long-tenured team and a risk-aware approach, earning a Silver Morningstar Medalist Rating. PRF is an index strategy that weights stocks by fundamentals, making it competitive even when value stocks are out of favor. DFIV is a low-cost fund with a broad scope and a track record of outperforming in quick bursts.

Title: Three Value ETFs to Watch in 2025

As value investing continues to gain traction, three ETFs stand out for their strong performance and strategic approaches. These ETFs offer investors a mix of active management, index strategies, and low-cost options, making them compelling choices for those seeking to capitalize on undervalued stocks.

# Capital Group Dividend Value ETF (CGDV)

Capital Group Dividend Value ETF (CGDV) is an actively managed fund that adheres to a multimanager approach. Led by Chris Buchbinder, who has managed the strategy since 2007, CGDV focuses on high-quality companies with a history of paying dividends. The fund's portfolio includes 52 stocks, with top holdings such as Microsoft and RTX Corp. CGDV has demonstrated strong performance, gaining 12.1% annualized over the three years through March 2025, and ranking among the top 1% of its peers in the large value category [2].

# Invesco RAFI US 1000 ETF (PRF)

Invesco RAFI US 1000 ETF (PRF) employs an index strategy that weights stocks by their fundamentals, rather than market capitalization. This approach allows the fund to double down on cheaper stocks and trim exposure to those on the rise, embodying the core principle of value investing. PRF covers the full large- and mid-cap market, providing a broad scope that helps it stay competitive even when value stocks are out of favor. The fund has ranked in its category's top quintile over the trailing five-, 10-, and 15-year periods [2].

# Dimensional International Value ETF (DFIV)

Dimensional International Value ETF (DFIV) is a low-cost, systematic active fund that focuses on large- and mid-cap stocks representing the cheapest third of the foreign developed market. The fund tilts toward smaller, more profitable companies with lower valuations, a strategy that has historically yielded market-beating returns. DFIV's portfolio includes over 500 holdings, ensuring diversification and reducing the impact of any single poor performer. From September 2021 through March 2025, DFIV's 9.1% annualized gain ranked in the top 10% of the foreign large-value category [2].

Conclusion

These three value ETFs offer investors a range of strategic approaches to value investing, from active management to index strategies and low-cost options. Each fund has demonstrated strong performance and provides a compelling option for investors seeking to capitalize on undervalued stocks. As value investing continues to gain traction, these ETFs are worth considering for long-term investment portfolios.

References

[1] https://economictimes.indiatimes.com/mf/analysis/best-value-funds-to-invest-in-may-2025/articleshow/121152147.cms
[2] https://www.morningstar.com/funds/3-great-value-etfs-2025-2
[3] https://www.nasdaq.com/articles/us-global-investors-reports-q1-2025-results-operating-revenues-21-million-and-net-loss