Value funds are not delivering the cheap, boring stocks investors expect. Many of these portfolios now hold significant AI-related positions instead.
This shift is reshaping how investors understand value investing. The traditional definition of a bargain stock is changing quickly.
Fund managers have added technology names that once looked expensive. Falling valuations and rising earnings have made some AI companies appear cheap.
The result is a value category increasingly tied to artificial intelligence trends. Investors seeking safety may find more volatility than anticipated.
Screening for low price-to-earnings ratios no longer guarantees a conservative portfolio. AI exposure now hides inside many so-called bargain funds.
Understanding a fund’s actual holdings has become essential. Labels alone do not reveal the true risks within a portfolio.
