Build Global Value Exposure With This 2-ETF Combo: A Practical, Diversified Approach for Long-Term Investors

Meta description: Learn how to build global value exposure using a simple two-ETF mix—one U.S. value factor ETF and one international value factor ETF—plus clear steps, risks, and portfolio ideas for 2026.

After a huge run for growth stocks in 2025, many investors and advisors are asking a simple question: are today’s prices still supported by real business fundamentals? When that doubt rises, value investing often comes back into the spotlight—especially strategies that look for companies trading at attractive valuations compared to earnings, cash flow, or other fundamentals.

This rewritten, detailed report explains the core idea behind the “2-ETF combo” approach for value exposure across the globe: pairing the Fidelity Value Factor ETF (FVAL) for U.S. stocks with the Fidelity International Value Factor ETF (FIVA) for developed markets outside the U.S. Together, they aim to create a broad, value-tilted equity allocation without needing dozens of funds or constant stock picking.

External reference (original source): ETF Trends article link

Why “Global Value” Is Getting Attention Again

Value investing, at its core, tries to buy shares of solid businesses when their prices look cheap compared to the company’s fundamentals. It’s not a guarantee of better returns every year, but historically, value can shine in certain market environments—especially when:

Valuations are stretched in popular growth areas, making investors more sensitive to disappointments.
Interest rates or inflation expectations change, which can alter how markets price future growth.
Leadership rotates from a narrow set of mega-cap winners to a wider set of companies and sectors.

The main “news hook” behind this 2-ETF combo is that uncertainty about whether high-flying growth valuations still align with fundamentals has helped bring value investing back into the conversation.

Why go global instead of “U.S. value only”?

Staying only in one country can concentrate risk. Going global can help diversify exposure across:

Different economic cycles (U.S. vs. Europe vs. Japan, etc.)
Different sector mixes (some regions are heavier in financials or industrials)
Currency and policy differences that can affect returns

That’s the logic behind combining a U.S. value ETF with an international value ETF—simple building blocks that can be adjusted depending on your goals.

The 2-ETF Combo: What It Is and Why It’s Simple

The combo uses:

FVAL (U.S. value factor exposure)
FIVA (international developed-markets value factor exposure)

In plain terms:

FVAL aims to track the Fidelity U.S. Value Factor Index and generally invests at least 80% of assets in securities in that index.
FIVA seeks returns that generally correspond to the Fidelity International Value Factor Index (developed markets outside the U.S.) before fees and expenses.

Cost matters: expense ratios

One reason this pairing stands out is cost efficiency for factor-style ETFs:

FVAL net expense ratio: 0.15% (about $15 per $10,000 per year, ignoring other costs).
FIVA expense ratio: 0.19% (about $19 per $10,000 per year, ignoring other costs).

Lower fees don’t guarantee better returns, but over long periods, costs can meaningfully affect what you keep.

Meet ETF #1: Fidelity Value Factor ETF (FVAL)

What it targets: Large- and mid-cap U.S. companies that have attractive valuations, using Fidelity’s rules-based index approach.

Quick facts (from available fund materials)

Inception date: September 12, 2016
Total holdings (approx.): 128
Net expense ratio: 0.15%

How FVAL tries to deliver “value”

Traditional value funds often focus on classic metrics like price-to-book or price-to-earnings. In practice, “value” can mean different things depending on methodology. What makes factor ETFs interesting is that they follow a rules-based approach rather than a manager’s personal opinions. FVAL’s objective is to correspond (before fees/expenses) to its value factor index, which is designed to represent U.S. companies with attractive valuations.

A realistic expectation check

Even if value is “cheap,” it can stay cheap for a long time. A value tilt can underperform growth-heavy markets, sometimes for years. That’s not failure—it’s the tradeoff for seeking a different return pattern over a full cycle.

Meet ETF #2: Fidelity International Value Factor ETF (FIVA)

What it targets: Developed-market stocks outside the U.S. that screen as attractively valued, based on the Fidelity International Value Factor Index.

Quick facts (from public sources)

Inception date: January 16, 2018
Expense ratio: 0.19%
Portfolio approach: Developed markets ex-U.S., value factor tilt

Why pair international value with U.S. value?

Many investors already have heavy U.S. exposure (sometimes without realizing it). Adding international value can:

Reduce “home country” concentration
Add exposure to different sector compositions and business cycles
Introduce currency exposure (which can help or hurt, depending on the year)

That said, international investing has its own risks—political changes, regional recessions, and currency swings. It’s diversification, not magic.

How to Combine FVAL + FIVA: Portfolio Models You Can Understand

The article concept is “two funds = global value exposure.” But the allocation (how much to each) depends on what you want your portfolio to look like.

Model allocations (examples)

Model	FVAL (U.S.)	FIVA (International)	Who it may fit
Balanced Global Value	50%	50%	Investors who want “true” global balance
U.S.-Tilted Global Value	60%	40%	Investors whose spending and income are USD-based
International-Boosted Value	40%	60%	Investors who feel U.S. valuations are richer

Important: These are educational examples, not personal financial advice. Your age, goals, taxes, and risk tolerance matter.

A simple rebalancing rule

To keep it easy, many long-term investors use rules like:

Time-based rebalancing: check once or twice a year
Threshold rebalancing: rebalance if one side drifts more than, say, 5–10% away from target

Rebalancing forces you to trim what’s grown and add to what’s lagged—basically “buy low, sell high” in a disciplined way.

What You’re Really Buying: Factor Exposure, Not Just “Cheap Stocks”

In everyday language, “value” sounds like bargain hunting. In ETFs, value is often implemented as a factor—a systematic set of characteristics linked (historically) to different return patterns.

Common value signals (conceptually)

Low price relative to earnings
Low price relative to book value
Low price relative to cash flow

Different indexes blend these signals differently. That’s why two value ETFs can behave differently in the same year.

Why factor ETFs can look “weird” sometimes

Here’s a surprise for many beginners: a “value ETF” might still hold some technology stocks or other sectors you don’t expect. That can happen because:

A company’s price fell enough to look cheap by the index rules
Its fundamentals improved faster than price
The index uses multiple valuation measures, not just one

For example, public ETF research notes that FVAL can have a different sector tilt compared with classic value benchmarks, depending on how the index screens and weights holdings.

Potential Benefits of the FVAL + FIVA Combo

1) Broader diversification than single-country value

You’re not betting everything on one economy or one stock market.

2) A clear style tilt

If your portfolio is already dominated by growth-heavy indexes, adding value exposure can diversify style risk.

3) Cost-effective factor access

Both funds are positioned as relatively low-cost for factor ETFs (0.15% and 0.19%).

4) Simple “2-fund discipline”

Simple portfolios are easier to stick with. And sticking with a plan is often the hardest part of investing.

Key Risks and Tradeoffs You Should Know

No strategy is free. Here are the big ones to understand before using a global value combo:

Value can lag for long periods

Markets can stay excited about growth for longer than you expect. Value may underperform during innovation booms or when investors are willing to pay “any price” for growth narratives.

International risk is real

FIVA adds developed markets outside the U.S., which brings currency fluctuations and region-specific risks.

Factor definitions can change outcomes

Even within “value,” index rules matter. The ETF may not match your personal idea of what value “should” be.

Tracking difference and implementation costs

Even index ETFs may differ slightly from index returns due to fees, trading costs, and management details. FVAL’s objective is to correspond to the index before fees/expenses, so some difference is normal.

Who Might Consider This 2-ETF Global Value Approach?

Long-term investors who can hold through cycles and don’t panic when value lags.
Investors worried about concentrated growth exposure and looking for a different style balance.
DIY investors who want a simple, rules-based plan rather than constant trading.
Advisors building model portfolios who want clean “building blocks” for global equity sleeves.

If you need low volatility in the short term (like money for school fees next year), an all-equity value strategy may not fit. Stocks can drop hard—value stocks included.

Implementation Tips: Making the Combo Actually Work in Real Life

Step 1: Decide your target split

Pick a ratio you can stick with (50/50, 60/40, etc.). The “best” mix is less important than consistency.

Step 2: Use consistent contributions

If you add money monthly, you can direct new contributions to whichever ETF is under target. That’s a gentle, low-stress form of rebalancing.

Step 3: Rebalance with rules, not feelings

Write down your rule now—when you’re calm. Use time-based or threshold-based rebalancing.

Step 4: Keep taxes in mind

In taxable accounts, rebalancing can trigger capital gains. Many investors prefer rebalancing with new contributions or within tax-advantaged accounts when possible.

Step 5: Don’t forget the rest of your portfolio

This combo is about global value exposure. It doesn’t automatically include bonds, cash, or other diversifiers you might need for your full financial plan.

FAQs About the “Build Global Value Exposure With This 2-ETF Combo” Strategy

1) What does “global value exposure” mean?

It means investing across multiple countries (global) while tilting toward stocks that look attractively priced compared to fundamentals (value). Using both a U.S. value ETF and an international value ETF spreads that value tilt across regions.

2) Are FVAL and FIVA actively managed?

They’re index-based (rules-based) ETFs that aim to track proprietary Fidelity value factor indexes before fees and expenses, rather than discretionary stock picking.

3) What are the fees for FVAL and FIVA?

Public fund materials show FVAL’s net expense ratio at 0.15%, while FIVA’s expense ratio is commonly listed at 0.19%.

4) Can I hold just these two ETFs as my entire portfolio?

You can hold them as your core equity sleeve, but many investors also hold bonds or cash depending on goals, timeline, and risk tolerance. Two equity ETFs don’t automatically manage downside risk the way a stock/bond mix might.

5) How often should I rebalance this two-ETF portfolio?

A common approach is 1–2 times per year, or whenever the portfolio drifts beyond a preset threshold (like 5–10%). The key is consistency.

6) What’s the biggest risk of a value strategy?

The biggest risk is patience: value can underperform for long stretches. If you switch strategies after a few bad years, you may lock in disappointment instead of benefiting from a full market cycle.

7) Does international value automatically outperform U.S. value?

No. Different regions lead at different times. International can help diversify, but it can also lag—especially when currency moves against you or when one region’s economy slows more than others.

Conclusion: A Simple Two-ETF Framework, With Real-World Discipline Required

The core idea behind Build Global Value Exposure With This 2-ETF Combo is straightforward: use FVAL for U.S. value factor exposure and FIVA for developed international value factor exposure, creating a global value tilt with just two tickers. It’s simple, cost-aware, and easy to rebalance—qualities that matter more than many people think.

Still, the strategy works best for investors who understand the tradeoffs: value can lag, international markets carry unique risks, and factor indexes won’t always match your intuition. If you accept those realities and stay disciplined, this two-ETF combo can be a clean, practical way to diversify beyond growth-heavy portfolios and pursue value exposure worldwide.

Reminder: This is educational content, not personalized investment advice. If you’re unsure how this fits your situation, consider speaking with a licensed financial professional.

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