Matrix Advisors Value ETF (MAVF)

The Matrix Advisors Value ETF (MAVF) is an actively managed fund that bets on a timeless investment thesis: the best returns often come from buying good companies when the crowd has temporarily ignored them. The fund invests primarily in large-cap U.S. stocks where the managers believe value is present, mixing heavy positions in financial institutions with selective technology holdings that trade below intrinsic worth.

The active management difference

MAVF is not an index fund. The portfolio managers at Matrix Asset Advisors make deliberate decisions about which stocks to own and in what quantity. This is different from an S&P 500 index fund, where the holdings are locked to a mechanical rule—own all 500 companies, in exact proportion to their market caps.

Active management carries both benefit and cost. The benefit is the possibility of outperformance: if the managers are skilled at spotting undervalued stocks, the fund can earn returns above the index. The cost is the annual expense ratio (0.75%), which is meaningful. An investor gets the performance the managers generate minus that 0.75% fee. On average, active managers underperform their benchmarks after fees, but some do better than others for stretches of time.

MAVF’s managers are betting they can beat the index consistently by finding stocks that the market has mispriced—usually stocks that look cheap on traditional metrics like price-to-earnings or price-to-book, but sit in boring or out-of-favor sectors.

The portfolio mix

MAVF’s top holdings include major technology names (Alphabet, Microsoft, Apple), which might seem to contradict a “value” label, since those companies carry high absolute stock prices. But value investing is about what you pay relative to what you get, not whether the stock price looks big or small.

The fund also holds substantial positions in financial institutions—banks, asset managers, exchanges—sectors that often trade at discounts to technology in bull markets. These businesses generate steady earnings and return capital to shareholders through dividends and buybacks. During periods when the financial sector is out of favor, owning those stocks at reasonable prices can deliver strong returns when sentiment shifts.

The combination creates a portfolio that tilts older economy and financial sector, but is not a pure financials fund. Technology is present because the managers see pockets of value there. The balance shifts with market conditions and the managers’ current conviction.

Income and total return

MAVF’s objective, stated plainly in fund documents, is “total rate of return comprised of capital appreciation and current income.” That means the fund is hunting for both price gains and dividends. Stocks in the financial sector often yield 3-5% or more, so the fund’s overall dividend yield is higher than a typical S&P 500 index fund.

For investors who care about income, this is useful. You receive regular dividend payments, which represent actual cash flowing to shareholders rather than just theoretical gains locked in the stock price.

Over longer periods, total return—price appreciation plus reinvested dividends—is what matters. MAVF’s mix of value stocks and dividends is designed to deliver that, though there is no guarantee.

Sector concentration and risk

The fund is not broadly diversified in a sector-neutral way. It holds more financial stocks and fewer fast-growing technology stocks than the S&P 500 as a whole. This concentration is deliberate—the managers believe those sectors offer value. But concentration is a risk. If the financial sector falls sharply or if technology stocks soar, MAVF may lag.

Value investing also comes with a style risk. There are periods—sometimes stretching several years—when growth stocks dramatically outpace value stocks. During a sustained tech boom, MAVF could underperform a simple S&P 500 index fund by a wide margin, even if the managers are skilled. This is not a failure; it is a feature of owning a value-tilted portfolio.

Investors in MAVF should be comfortable with the idea that they are making a bet on value outperforming growth over their holding period. This bet often works out, but there is no guarantee.

Assets under management and fund size

MAVF manages approximately $92 million in assets. For context, the largest ETFs manage hundreds of billions. A smaller fund size does not hurt performance, but it does mean MAVF is less liquid—the bid-ask spread when you trade might be wider, and the fund is less widely known.

Smaller funds also have more concentrated positions, which can be a double-edged sword. The managers can take strong conviction positions in stocks they really believe in, but a mistake hits harder.

What drives performance and how to watch

MAVF’s performance relative to a broad index depends on how value stocks are treated in the market. In years when investors are hunting for cheap stocks and avoiding growth-at-any-price, MAVF typically outperforms. In years when growth dominates, it often lags.

The fund’s 60-month beta (volatility relative to the S&P 500) is around 1.07, meaning it moves slightly more than the broad market. This is minor and reflects the mix of stocks more than any exotic strategy.

To evaluate MAVF, look at long-term performance versus a value benchmark and the S&P 500 itself. Check the holdings to understand whether they still look cheap by current standards. If valuations have caught up and the stocks no longer look underpriced, the fund may have already captured the value thesis. Also compare the expense ratio to similar actively managed funds and index alternatives.

Research and due diligence

MAVF’s annual report and quarterly fact sheets show the current holdings and the fund’s performance attribution—which sectors and positions drove returns. Reading these is essential to understand whether the managers’ bets are paying off or whether the fund is simply delivering a sector-tilted portfolio without true active outperformance.

Consider the consistency of the management team. If the same managers who built the current portfolio are still in place, there is continuity of philosophy. If there has been significant turnover, the fund’s future may differ from its past.

As with any actively managed fund, understand that you are paying for management skill. If the managers beat their benchmark by 1-2% annually over a full market cycle, the 0.75% fee is reasonable. If they consistently lag, you are better served by a low-cost index fund.