A 50/50 allocation of US large-cap and US small-cap value outperforms US large-cap value in risk-adjusted returns. AVLV offers better value factor loadings and historically superior returns compared to VTV, despite VTV's lower expense ratio and higher liquidity. VTV has better factor loadings in profitability and investment, less correlation to VOO, and a more diversified portfolio, making it less risky.
Investment management firm Vanguard offers a variety of exchange-traded funds (ETFs) that allow investors to target a specific theme or sector at a low cost.
Launched on 01/26/2004, the Vanguard Value ETF (VTV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The VTV ETF offers a low expense ratio (0.04%) and a high dividend yield (2.30%), making it a competitive choice compared to its peers. The S&P 500's high P/E ratio suggests a potential mean reversion, which could favor value stocks like VTV over growth stocks. The high P/E of growth stocks (close to 40x) and the expected EPS contraction for Q4 2024 and 2025 could reduce the spread between VTV and VUG.
As 2024 winds down, growth stocks have once again easily outperformed value stocks. If it seems like growth stocks usually outperform value stocks, you'd be correct when looking back over the past 10 years.
I maintain a buy rating on VTV due to its strong momentum, low cost, and solid technical trend despite concerns about valuation. VTV's portfolio is well-diversified, with significant exposure to large-cap value stocks and a forward P/E ratio between 16x and 17x. The ETF's impressive liquidity and dividend yield of 2.24% make it an attractive investment, though caution is advised due to seasonal trends.
Record highs across the S&P 500, Nasdaq Composite, and Dow Jones showcase just how widespread the 2024 stock market rally has been.
Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Vanguard Value ETF (VTV) is a passively managed exchange traded fund launched on 01/26/2004.
Value stocks have lagged growth stocks for several years now. The reasons for this performance disparity are fading.
Vanguard funds often have low expense ratios and offer great value. They also provide the opportunity to earn some great long-run returns.
Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Vanguard Value ETF (VTV), a passively managed exchange traded fund launched on 01/26/2004.
Value investing involves buying assets priced low relative to their fundamentals, often outperforming in bear markets and recovery cycles. Economic indicators suggest a recession, triggering market fear and sales since August 2024. Given negative economic sentiment, I recommend focusing on value investments, particularly Vanguard Value Index Fund ETF Shares.