Undervalued etfs

Screening Filters

1. PriceBelowMA200 (Moving Average Relationship)

   • Purpose: Find ETFs whose current price is below their 200‑day moving average.
   • Rationale:
     • The 200‑day moving average is a long‑term trend gauge.
     • When an ETF trades below this level, it often means it has been under pressure or is out of favor.
     • For a value‑oriented search, this is useful because price weakness can indicate potential undervaluation (assuming fundamentals are still sound), rather than chasing ETFs that are already extended and possibly overvalued.

2. 1‑Year Price Change: −30% to 0%

   • Purpose: Focus on ETFs that have declined up to 30% over the last year or at least not risen.
   • Rationale:
     • “Undervalued” usually implies something is cheaper than it used to be, relative to its fundamentals or peers.
     • By excluding strong recent winners (positive returns) and extreme collapses (worse than −30%), this range targets ETFs that are:
       • Underperforming or out of favor (possible value opportunities),
       • But not in absolute free‑fall, which might indicate structural problems rather than mere mispricing.

3. Themes: Large Cap Value Equities, Mid Cap Value Equities, Small Cap Value Equities

   • Purpose: Restrict results to equity ETFs with an explicit “value” focus across different market‑cap segments.
   • Rationale:
     • You asked for “undervalued ETFs”; in ETF taxonomy, “value” funds are designed to tilt toward cheaper stocks (low P/E, low P/B, higher dividend yields, etc.).
     • Including large, mid, and small cap value ETFs:
       • Broadens the opportunity set across the size spectrum,
       • Keeps the search aligned with value strategies rather than growth or thematic/speculative funds.
     • These themes are typically used for US equity markets, which aligns with your focus on the US stock market.

4. Stock Position ≥ 90% (MoreThan90Pct)

   • Purpose: Ensure that at least 90% of the ETF’s holdings are in stocks.
   • Rationale:
     • You’re interested in US stock market exposure, not mixed‑asset or bond‑heavy products.
     • This filter avoids balanced funds, alternatives, or ETFs with large cash/derivative positions that dilute pure equity exposure.
     • It makes the valuation picture cleaner, since equity valuation metrics (P/E, P/B, etc.) are most meaningful for stock‑heavy portfolios.

5. Expense Ratio ≤ 0.75%

   • Purpose: Exclude ETFs with high ongoing fees.
   • Rationale:
     • Even if an ETF appears undervalued based on price and strategy, high fees erode returns and make it harder for investors to realize the benefit of that undervaluation.
     • Capping the expense ratio at 0.75% keeps results in a generally “reasonable cost” range for actively or smart‑beta/tilt ETFs, and excludes the most expensive, niche products.

Why Results Match Your Request

• The value themes (large/mid/small cap value) explicitly target stocks that are cheap on fundamental metrics, which is the structural definition of “undervalued” in ETF design.
• The price‑based filters (below 200‑day MA and −30% to 0% 1‑year performance) emphasize ETFs that are currently out of favor or beaten down, increasing the chance of finding mispriced or overlooked value opportunities rather than momentum plays.
• The stock exposure filter ensures you’re getting true equity ETFs tied to the US stock market, rather than hybrids or non‑equity products.
• The expense ratio cap protects you from “value traps” at the fund level—ETFs that might look cheap on holdings but are expensive to own due to high fees.

Together, these filters narrow the universe to reasonably priced, equity‑heavy, value‑focused US ETFs that have seen some recent price weakness—aligning well with a search for potentially undervalued ETFs in the US stock market.