Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

Leaner Focus on Value Could Propel This ETF

BY | ETF Database
10:11 am ET 05/13/26 | 1 VIEW
  • Related Symbols
  • FLV
With artificial intelligence (AI)-linked equities continuing to captivate investors’ hearts and minds, it’s not surprising market participants are leaning into growth stocks and the related ETFs. Believe it or not, that could also be indicative of opportunity with value stocks. Think of it this way: Many investors are sleeping on value at a time when the style is proving durable. The actively managed American Century Focused Large Cap Value ETF (FLV C+) is proof of that trend, as the ETF is delivering solid returns, proving its merit as a complement in growth-heavy portfolios. Read more: Lean on Active Management for Small-Cap Value SuccessFor value investors, the $343.9 million FLV offers multiple advantages. First, as an actively managed ETF, FLV can leverage that management style to more effectively identify stocks with credible value traits while avoiding value traps. Second, FLV features a high-conviction roster of just 49 stocks. By comparison, passive ETFs tracking the Russell 1000 Value Index — the gauge FLV attempts to beat — hold more than 860 stocks. That breadth increases the odds of some undesirable names appearing in the index.More FLV PerksIn addition to its ability to potentially separate the value wheat from the chaff, FLV is appealing at a time when some investors need to diversify their equity portfolios. Said another way, this ETF makes a lot of sense for investors that may have feasted too heavily on growth fare. “In the comparison of value stocks vs. growth stocks, value stocks are generally associated with lower valuation metrics, steadier cash flows and more frequent dividend payouts, while growth stocks are usually priced for stronger future expansion,” noted Saxo. “This means value stocks may suit investors looking for stability and income, whereas growth stocks tend to carry higher expectations and greater sensitivity to sentiment.” Another perk offered by active management with value stocks: the possibility that human managers better identify credibly undervalued stocks. That speaks to the advantages of FLV’s small-by-comparison lineup; it could signal more opportunity for rerating. That’s the name of the game with value investing. Buy when a temporarily undervalued stocked, potentially shortening the odds markets will get around to agreeing with the undervalue thesis, thus pushing the stock higher in the future. Stock-picking to that effect is tricky, underscoring the utility of an ETF like FLV. “Value stocks provide the opportunity to invest in well-established companies that are temporarily undervalued. Over time, these stocks tend to recover as the market recognises their true worth, offering long-term capital appreciation,” added Saxo. For more news, information, and analysis, visit the Core Strategies Content Hub.

More Commentary

Navigating the Small-Cap ETF Disconnect
BY | ETF Database
6:43 am ET 05/13/26 | 9 VIEWS
ETF Prime: Space & AI Infrastructure in Focus
BY | ETF Database
10:26 am ET 05/13/26 | 3 VIEWS
Why the Healthcare Sector Warrants Concentrated Exposure
BY | ETF Database
10:59 am ET 05/13/26 | 1 VIEW
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.