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Value stocks are typically considered to be equities that are trading below their intrinsic value - that is, the price it should theoretically command based on its fundamentals and future cash flows. Notably, value stocks are often characterized by low valuation metrics, such as price/earnings (p/e) or price/book (p/b) ratios, along with a decent dividend yield.
So far in 2023, value stocks have yielded positive returns, with the SPDR Portfolio S&P 500 Value ETF (SPYV) - an ETF that tracks the performance of the S&P 500 Value Index - up 12.1% on a YTD basis. However, the wider S&P 500 Index ($SPX) and the tech-heavy Nasdaq Composite ($NASX) have both outperformed these value stocks, up 16.4% and 32.1%, respectively.