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This Value ETF Has a Winning Recipe

BY | ETF Database
8:42 am ET 09/15/26 | 6 VIEWS
  • Related Symbols
  • WTV
Barring a reversal of epic proportions in the final three and a half months of 2026, value stocks and the related ETFs will likely again lag their growth counterparts when this year draws to a close. That doesn’t mean value investing is dead. However, it confirms that the gains posted by value stocks and basic value funds continue to fall behind growth equivalents. That said, some value ETFs are pleasantly surprising this year — a group that includes the WisdomTree U.S. Value Fund (WTV B+).In quiet fashion, WTV entered the Thursday, September 10 trading session with a year-to-date gain of more than 14%. That’s good for an advantage of about 300 basis points over the S&P 500 and more than 400 basis points over the S&P 500 Value Index. Advisors and investors likely want to know why the $3.29 billion WTV is outperforming at a time when standard value structures are lethargic. Fortunately, the answers are compelling.Why WTV Is WinningWTV, which turns 20 years old next February, departs from old guard value ETFs in that the WisdomTree fund focuses on shareholder yield over traditional value metrics such as price-to-book and price-to-earnings ratios. WTV’s emphasis on shareholder yield is important because shareholder yield is rooted in three concepts: buybacks, dividends and debt reduction. That enhances this ETF’s relevancy at a time when share repurchases continue outpacing dividends in dollar terms and as — perhaps surprising to some investors — companies engaging in buybacks and/or paying dividends are outperforming those that don’t deliver shareholder rewards. “Yet, the general trend of US companies spending more on buybacks than dividends is evident. Beyond the flexibility, buybacks are also more tax-efficient,” noted Dan Lefkovitz of Morningstar. “Given their rise, market-level yield metrics and valuation tools that consider dividends alone could be obsolete.” That’s not an indictment of dividend-paying stocks or ETFs, but the message is clear: All three pillars of shareholder yield can benefit investors, and accessing them under one roof is attractive. WTV checks that box. Said another way, advisors and investors embracing WTV don’t have to decide between dividends and buybacks. Those two forms of shareholder rewards, for whatever reason, are often pitted against each other. “As far as which is better, I’m not going to wade into that debate. Dividends obviously have a cash-in-hand appeal. The dividend commitment is thought to focus corporate managers on steering a steady course,” added Lefkovitz. For more news, information, and analysis, visit the Modern Alpha Content Hub.Disclosures This article was prepared as part of WisdomTree’s general paid sponsorship of VettaFi | ETF Trends. This specific content within and any opinions expressed therein belong solely to VettaFi and do not reflect the opinion or analysis of WisdomTree, its employees, or its affiliates. Content published on VettaFi | ETF Trends is provided for educational purposes only and should not be considered investment or tax advice. For investment or tax advice, please consult a financial professional. WisdomTree is an independent company, unaffiliated with VettaFi | ETF Trends. WisdomTree has not been involved with the preparation of the content supplied by VettaFi | ETF Trends. It does not guarantee, or assume any responsibility for its content.

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