3 Undervalued ETFs Wall Street Is About to Discover
High yield, inflation protection, and growth potential: These ETFs are flying under the radar but won’t for long.
As of mid-2025, the ETF landscape continues to evolve rapidly, with certain undervalued ETFs offering compelling opportunities before they attract widespread Wall Street attention. Below, we revisit three such ETFs—energy infrastructure, gold miners, and dividend-focused value ETFs—adding expert opinions and future potential outlooks to help investors position themselves ahead of the curve.
1. Energy Infrastructure ETF with High Yield
Why it’s undervalued:
Energy infrastructure ETFs, particularly those focusing on midstream assets like pipelines and storage, have been overlooked despite their strong fundamentals. These companies benefit from steady cash flows, inflation protection, and rising energy demand.
Future potential:
Noel Archard, Global Head of ETFs at AllianceBernstein, highlights that ETFs remain efficient building blocks for portfolio strategies in 2025, especially in sectors with stable income streams like energy infrastructure. With global energy demand expected to grow and infrastructure needing upgrades, these ETFs stand to benefit from both rising cash flows and higher yields.
Expert opinion:
“Energy infrastructure ETFs offer a rare combination of yield and inflation resilience, making them a smart choice as inflation concerns persist,” says a senior portfolio manager at a major asset manager. “Their undervaluation today reflects market caution, but fundamentals suggest strong total returns ahead.”
2. Gold Miners ETF with Leveraged Exposure
Why it’s undervalued:
Gold miners ETFs have surged over 50% in 2025, with some leveraged funds like the MicroSectors Gold Miners 3X Leveraged ETN up about 165% year-to-date. Despite this, investor demand has lagged, indicating Wall Street has not fully priced in the sector’s potential.
Future potential:
Gold remains a critical hedge against inflation and geopolitical risk, which continue to be major concerns. Eduardo Repetto, CIO at Avantis Investors, notes that ETFs are increasingly favored for their tax efficiency and global exposure, which benefits gold miners funds. Given gold prices are up nearly 30% this year, gold miners ETFs could see continued momentum, especially if inflation or geopolitical tensions rise.
Expert opinion:
“Gold miners are entering a new bull phase,” says a precious metals strategist.
“With miners’ balance sheets stronger than in past cycles, these ETFs offer leveraged upside with less risk than before.”
3. Dividend-Focused Value ETF
Why it’s undervalued:
Dividend-value ETFs like the Capital Group Dividend Value ETF (CGDV) and Vanguard Dividend Appreciation ETF offer steady income with capital appreciation potential. CGDV has delivered nearly 15% returns recently, with dividend yields around 1.5-1.7%.
Future potential:
Bryan Armour, Morningstar director, emphasizes the value of dividend growth strategies, noting that targeting companies with a decade of dividend increases reduces volatility and enhances long-term risk-adjusted returns. As markets face uncertainty, dividend-value ETFs provide defensive qualities with growth upside.
Expert opinion
“Dividend growth ETFs are the unsung heroes in 2025,” says a veteran equity analyst. “They combine quality and income, which is exactly what investors need in a market that’s pricing in slower growth but persistent inflation.”
Final Thoughts
The ETF market in 2025 is maturing, with active and passive strategies gaining traction due to their efficiency and flexibility. These three undervalued ETFs—energy infrastructure, gold miners, and dividend-value—combine strong fundamentals with macroeconomic tailwinds and remain underappreciated by the broader market.
Wall Street’s attention is likely to shift soon, driving these ETFs higher. Investors looking for yield, inflation protection, and quality growth should consider these funds now to capture outsized returns before the crowd.
Disclaimer: This post is for informational purposes only and does not constitute investment advice. Always consult a financial advisor before making investment decisions.