TVAL posts steady gains as value lags growth

T. Rowe Price Value ETF (TVAL) has returned 19.4% year-to-date, compared with 18.9% for the Russell 1000 Value index, according to YCharts data. The fund is actively managed by T. Rowe Price and carries a 33 basis-point fee.

TVAL follows a bottom-up stock selection process that targets companies the managers view as undervalued. The research team evaluates dividend yield, book value, sales, cash flow and earnings, and looks for situations where restructuring could improve returns. The fund does not set market-cap limits but primarily holds large-cap stocks.

T. Rowe Price uses the Russell 1000 Value index as the benchmark for performance comparisons. The fund’s active structure allows portfolio managers to change holdings based on their convictions rather than following index rules.

A valuation analysis using June 2026 monthly data estimated the S&P 500 was 116% to 207% overvalued. Those valuation estimates have been cited by some investors weighing exposure away from the largest growth names.

Critics of active value strategies point to fees and the risk that returns will diverge from passive benchmarks. T. Rowe Price positions TVAL as suitable for a “core plus” sleeve, offering core equity exposure with an active value tilt.

Investors and advisers will monitor TVAL’s returns relative to shifting market valuations and the performance of growth-oriented sectors.