Should Vanguard Value ETF (VTV) Be on Your Investing Radar?

Core Viewpoint - The Vanguard Value ETF (VTV) is a leading passively managed ETF focused on the Large Cap Value segment of the US equity market, with significant assets under management and low expense ratios, making it an attractive option for investors seeking stability and long-term growth [1][4]. Group 1: Fund Overview - VTV was launched on January 26, 2004, and has accumulated over $139.18 billion in assets, making it the largest ETF in its category [1]. - The ETF targets large cap companies, defined as those with market capitalizations above $10 billion, which are generally more stable and less volatile compared to mid and small cap companies [2]. Group 2: Investment Characteristics - Value stocks, which VTV focuses on, typically have lower price-to-earnings and price-to-book ratios, and while they have historically outperformed growth stocks in the long term, growth stocks may perform better in strong bull markets [3]. - The ETF has an annual operating expense ratio of 0.04%, making it one of the least expensive options available, and it offers a 12-month trailing dividend yield of 2.18% [4]. Group 3: Sector Exposure and Holdings - VTV has a significant allocation to the Financials sector, comprising approximately 25.10% of the portfolio, followed by Healthcare and Industrials [5]. - The top holdings include Berkshire Hathaway Inc (3.59% of total assets), Jpmorgan Chase & Co, and Exxon Mobil Corp, with the top 10 holdings accounting for about 9.06% of total assets [6]. Group 4: Performance Metrics - The ETF aims to match the performance of the CRSP U.S. Large Cap Value Index, with a year-to-date gain of approximately 6.11% and a 9.18% increase over the past year as of July 21, 2025 [7]. - VTV has a beta of 0.81 and a standard deviation of 13.92% over the trailing three-year period, indicating a medium risk profile with effective diversification across 333 holdings [8]. Group 5: Competitive Landscape - VTV holds a Zacks ETF Rank of 1 (Strong Buy), indicating strong expected returns and favorable expense ratios, positioning it as a prime choice for investors interested in the Large Cap Value segment [9]. - Alternative ETFs in the same space include the iShares Russell 1000 Value ETF (IWD) with $62.49 billion in assets and an expense ratio of 0.19%, and the Schwab U.S. Dividend Equity ETF (SCHD) with $70.54 billion in assets and a 0.06% expense ratio [10]. Group 6: Market Trends - Passively managed ETFs like VTV are gaining popularity among both retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [11].