All-Time Highs for Stocks: These 2 ETFs Still Look Undervalued

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All-Time Highs for Stocks: These 2 ETFs Still Look Undervalued

Hey friends,

Stocks are climbing to all-time highs again, and if you’re like me, you’re wondering if there’s anything left to buy without overpaying.

We all love a rally, but let’s be honest: buying at the top can feel risky. That’s why I’ve been digging into ETFs that still look attractive even with the market soaring. Believe it or not, I’ve found two that stand out — offering real value, strong fundamentals, and long-term potential.

Let’s dive in.

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Why ETFs Matter Right Now

When markets are frothy, individual stock picking gets trickier. You don’t want to chase the wrong names at inflated prices.

That’s where ETFs shine. They offer instant diversification, lower volatility, and exposure to a full theme or sector instead of just one risky company. And when chosen wisely, they can still be a bargain.

What I was looking for:

  • Low price-to-earnings (P/E) ratios

  • Strong earnings growth

  • Sectors with future tailwinds

  • A history of outperformance during corrections

After going through the data, two ETFs stood out.

1. Vanguard Value ETF (VTV)

Yes, I know. Value stocks sound boring compared to AI and tech hype. But hear me out.

VTV holds large-cap U.S. companies that are considered undervalued based on price-to-book and earnings multiples. Think: JPMorgan, Johnson & Johnson, ExxonMobil, Berkshire Hathaway. These are rock-solid names.

Why VTV still looks attractive:

  • Low P/E ratio (~15x) compared to the broader market

  • Consistent dividend yield (~2.5%), which beats most savings accounts

  • Stable earnings even in volatile markets

  • Diversified exposure to financials, healthcare, energy, and more

In a market flying high, I like having something steady in my portfolio. This ETF is like the tortoise in the race — slow and steady, but reliable.

Also, when high-flying growth stocks correct, investors often rotate into value. That could give VTV an extra boost.

2. iShares U.S. Healthcare ETF (IYH)

Healthcare is a long-term winner. People don’t stop getting sick in a recession. Aging populations, medical innovation, and defensive earnings all make this sector a strong play.

IYH gives you exposure to U.S. healthcare giants: UnitedHealth, Pfizer, Johnson & Johnson, Merck, and more.

Why IYH is a smart pick now:

  • Healthcare is defensive — it tends to outperform during market downturns

  • Low volatility compared to tech and consumer discretionary

  • Reasonable valuations despite steady earnings growth

  • Tailwinds from aging baby boomers and increased global healthcare spending

I like this ETF because it balances growth with protection. It’s not flashy, but it gives you long-term security.

Why These ETFs Still Look Undervalued

Compared to the overall market (which has a P/E above 20), both of these ETFs trade at a discount.

Even with the market hitting all-time highs, VTV and IYH are still not at their own record levels. That’s your window of opportunity.

When the crowd chases hot stocks, smart investors look at what’s quietly growing in the background. That’s what these two ETFs represent: steady growth, fair prices, and lower risk.

Plus, they’re both packed with companies that generate real profits — not just hype.

What I’m Doing Right Now

Here’s my simple plan:

  • I’m buying both VTV and IYH in small chunks — dollar-cost averaging over time

  • I’m reinvesting dividends to compound my returns

  • I’m avoiding overpriced sectors like speculative tech

I’m not saying these ETFs will double overnight. But I believe they offer safety, income, and smart upside in a market that’s already stretched.

In fact, these two ETFs could even outperform if we get a correction or slowdown.

Final Takeaways

In a bull market, it’s easy to chase what’s hot. But long-term wealth is built by being patient, disciplined, and thinking differently.

Right now, I think VTV and IYH give investors a rare combo: value in a pricey market.

So if you’ve been sitting on cash, unsure of what to do at these levels — these ETFs are a solid place to start.

Remember: It’s not about timing the top. It’s about owning assets that hold up no matter what the market throws at you.

Stay curious, stay cautious, and keep building.

Your friend in finance

[Live Life Grow Wealth]

DISCLAIMER

I make no representations, warranties, or guarantees, whether expressed or implied, that the content provided is accurate, complete, or up-to-date. Past performance is not indicative nor a guarantee of future returns.

I am an individual content creator and not regulated or licensed by the Monetary Authority of Singapore (MAS) as I do not provide investment services.

All forms of investments carry risks, including the risk of losing your entire invested amount. Such activities may not be suitable for everyone. You are strongly encouraged to seek advice from a professional financial advisor if you have any doubts or concerns.