Value investing’s back with a bang in 2025. European indexes like the FTSE 100 and the DAX have this greatly outperformed US indexes like the S&P 500, with investors favouring cheap stocks to buy over more expensive North American growth shares.
This is perhaps no surprise given the uncertain macroeconomic and geopolitical landscape. By buying shares, investment trusts and exchange-traded funds (ETFs) that offer (or are focused on) value, investors enjoy a cushion that can help protect them from share price volatility.
The following UK stocks and funds have rocketed in value so far this year. And I think they can continue, making them top picks to consider.
Great fund
As its name implies, the iShares Edge MSCI World Value Factor UCITS ETF (LSE:IWVL) is designed with value in mind. And it’s risen 11.2% in 2025.
The fund holds 398 global shares in total, and searches for cheap shares based on three key metrics: the price-to-book (P/B) ratio, forward price-to-earnings (P/E) earnings, and enterprise value-to-cash flow from operations (EV/CFO).
What I especially like is its wide diversification across geographies, shielding investors from regional issues that could hamper performance. Of the 23 developed markets it covers, the US is its single largest, representing 37.1% of the fund.
The fund’s also well spread across a variety of sectors to reduce risk and provide a multitude of investment opportunities. Be aware though that information technology’s its biggest sector, which could impact performance during economic downturns.
Top trust
The Fidelity Special Values (LSE:FSV) targets “unloved companies that are entering a period of positive change that the market has not yet recognised“. It’s a strategy that’s paid off spectactularly in 2025 — this investment trust’s risen 21.1% in value in the year to date.
This could be down to its focus on UK shares, a region which has been overlooked for years due to political turbulence and weak growth. Cheap FTSE 100 stocks it owns include BAE Systems, Standard Chartered and GSK.
Veteran fund manager Alex Wright has seen the trust more than tripled in value since he took the helm in 2012. I think it can continue impressing, despite the higher regional risk it carries compared with global trusts.
Today, Fidelity trades at an 3.9% discount to its net asset value (NAV) per share, providing something extra for fans of cheap stocks.
FTSE 100 bargain
In my opinion, HSBC‘s (LSE:HSBA) one of the best FTSE 100 bargain shares available to investors today. The company trades on a forward P/E ratio of 9.1 times, and carries a 5.4% corresponding dividend yield. This solid all-round value comes despite HSBC’s incredible 19.2% share price rise in 2025.
Investing in Asian banks offers higher-than-usual risks than normal. China’s economy’s picking up speed following underperformance in recent years. But there’s a chance US-led trade tariffs could choke off its recent strong momentum.
That said, I still believe the potential benefits of owning HSBC shares outweighs the risks. Personal wealth levels and population sizes are soaring across its emerging markets, driving revenues skywards. And the bank’s expanding rapidly to capitalise on this enormous long-term opportunity.
