The VLUE ETF invests in large and mid-cap US companies trading at attractive valuations, providing exposure to stocks with strong value characteristics relative to the broader market. Importantly, it doesn’t aim to track the S&P 500 Value Index. Over the last 12 months, the VLUE ETF has surged ~67% compared to the S&P 500 Value Index’s +17.6% advance.
However, despite the strong performance the AUM is at its lowest since January at US$2.98bn due to net outflows over the past year.
- Mar 2025 outflow (-$537m): Coincided with the Liberation Day tariff shock selloff; VLUE dropped sharply, as did its peers.
- Sep 2025 inflow (+$684m): The largest inflow in the 3-year window arrived just as investors re-entered the value trade as the tariff shock faded and the US–Korea trade deal lifted sentiment.
- Jun 2026 outflow (-$3.78bn): Massive selling looks like a classic late-cycle institutional unwind after a near-doubling from the Apr 2025 trough.
We believe the outflows in June are a warning, but the ETF is still well positioned with liquidity looking for a home.
This ETF has performed strongly over the years and we feel investors will be happy to buy into dips, just as they are with the more volatile semiconductors – so far!
- We like the risk-reward towards the VLUE ETF into weakness down towards US$180, targeting fresh highs through 2026.
