Invest in economical stock options through these 3 ETFs, boasting low Purchasing Power Parity (PPP) and promising high returns.

Invest in economical stock options through these 3 ETFs, boasting low Purchasing Power Parity (PPP) and promising high returns.

In the ever-evolving world of investing, finding ETFs that offer high dividend yields and invest in truly undervalued stocks can be a game-changer for dividend investors and bargain hunters. Here are three top ETFs that stand out based on recent data and their investment focus:

1. **Capital Group Dividend Value ETF (CGDV)**: This actively managed ETF focuses on dividend-paying undervalued stocks. It combines dividend strength with value investing by selecting high-quality stocks with rising income potential. As of mid-2025, the 1-year NAV return was around 14.91%, with a 30-day SEC yield of about 1.73%. The expense ratio is 0.33%, and the Assets Under Management (AUM) is approximately $17.65 billion.

2. **Invesco RAFI US 1000 ETF (PRF)**: This ETF weights stocks by fundamental factors including book value and dividends, thus tilting toward undervalued dividend payers. The 1-year NAV return is approximately 6.89%, with a SEC 30-day yield near 1.88%. The expense ratio is 0.33%, and the AUM is about $7.78 billion.

3. **Vanguard High Dividend Yield ETF (VYM)**: This ETF focuses on companies with high dividend yields and solid fundamentals. It has a proven track record of consistent dividend returns and low fees (0.06% expense ratio). It’s a popular choice for dividend-focused value investors looking for broad market exposure.

While the iShares Edge MSCI Europe Value Factor UCITS ETF, BÖRSE ONLINE Global Dividend Stars Index, and WisdomTree Emerging Markets Equity Income UCITS ETF were also mentioned, the above three ETFs are highlighted due to their recent performance data, dividend yields, and value investing focus in 2025.

For those interested in international markets or sector-specific dividend plays (such as energy MLPs), specialized ETFs like the Invesco Morningstar US Energy Infrastructure MLP UCITS ETF can be considered, especially for higher yields, but they may come with different tax and risk profiles.

In summary, these funds combine value factors with high dividend income, making them suitable for investors seeking a blend of undervaluation and steady income. Boersenmedien AG has concluded a cooperation agreement with the issuer of the securities, granting the issuer a license to use the index.

**Summary Table:**

| ETF Name | Focus | Dividend Yield (Approx.) | Expense Ratio | Key Feature | |--------------------------------|-------------------------------------|-------------------------|---------------|----------------------------------| | Capital Group Dividend Value ETF (CGDV) | Dividend-paying undervalued stocks | ~1.73% (30-day SEC yield) | 0.33% | Active management, strong value approach | | Invesco RAFI US 1000 ETF (PRF) | Fundamental value weighting including dividends | ~1.88% (30-day SEC yield) | 0.33% | Fundamental factor weighting | | Vanguard High Dividend Yield ETF (VYM) | Broad U.S. high dividend yield stocks | Varies, competitive | 0.06% | Low-cost, broad market exposure |

[1] Source: ETF.com [2] Source: Investopedia [3] Source: The Balance [4] Source: Morningstar

1. For individuals prioritizing personal-finance strategies that involve investing in high dividend stocks, the Capital Group Dividend Value ETF (CGDV) might be an appropriate choice, offering a 30-day SEC yield of around 1.73% and a focus on dividend-paying undervalued stocks.
2. Those looking to diversify their portfolio and seek a blend of undervaluation and steady income, similar to the concept of personal-finance, may find the Vanguard High Dividend Yield ETF (VYM) appealing. This ETF focuses on companies with high dividend yields and solid fundamentals, providing a competitive yield and low-cost broad market exposure.

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