Core Viewpoint - The current stock market is perceived as expensive, particularly among AI-hyperscalers and megacap tech companies, prompting a potential shift towards active value ETFs for better investment opportunities [1][3]. Group 1: Market Conditions - The U.S. stock market is trading at historically high valuations, with a few expensive megacap tech names dominating the landscape [3]. - Value investing has struggled in recent years as growth opportunities have outperformed in volatile markets [2]. Group 2: Active Value ETFs - Active value ETFs utilize fundamental research and bottom-up portfolio construction to identify value investment opportunities, focusing on metrics like cash flow and shares outstanding [4]. - The T. Rowe Price Value ETF (TVAL) has shown a year-to-date return of 11.3%, outperforming its ETF Database Category average, with a management fee of 33 basis points [4]. Group 3: Comparison with Passive Funds - Active value ETFs have more flexibility compared to passive value funds, which are constrained by specific index tracking rules, limiting their responsiveness to market volatility [5]. - The adaptability of active value ETFs allows them to capitalize on market uncertainty, providing a strategic advantage [6].