Launched on 12/17/2007, the Vanguard Mega Cap Value ETF (MGV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
MGV is a low-cost value fund that selects mega-cap stocks based on five ratios: book-to-price, future earnings-to-price, historical earnings-to-price, dividends to price, and sales-to-price. It shares many similarities with the Vanguard Value ETF, including a low five-year beta and nearly identical valuation ratios. Naturally, it's slightly more concentrated, but the quality is higher. MGV has demonstrated solid downside protection over the last decade. However, FVAL is another low-cost value ETF I want readers to consider.