[Morningstar] Value ETFs Making a Big Tech Bet

Many investors are bemoaning the continued underperformance of value investing. But in fact, this has been a spectacular past 12 months for the value factor, with the HML premium being +20.33 over this timeframe.

Why the discrepancy? This Morningstar article has some revelations:

- Tech is now the biggest sector weighting (20%) in the Russell 1000 Value ETF, up from 11% at the start of 2025
- Of the +23.8% YTD for the Russell 1000 Value fund, nearly half (+11.5%) came from the tech sector (which doesn't even include Amazon).

However, if "value" to you is simply a synonym for "no tech", you probably have not performed nearly as well.