The Value-Focused Vanguard Fund That's a No-Brainer to Build Your Portfolio Around

Group 1 - Investing in value stocks offers a balance between growth, dividends, and long-term stability, making them solid long-term investments with good fundamentals and relatively low valuations [1] - An exchange-traded fund (ETF) focused on value stocks can provide a safer long-term investment option, allowing for more risk-taking in other areas of the portfolio [2] Group 2 - The Vanguard Value Index Fund ETF (VTV) is highlighted as a strong investment choice due to its diversification, focus on value, and low costs, making it suitable for all types of investors [3] - The fund includes 323 stocks, with major holdings like JPMorgan Chase and Berkshire Hathaway, each representing around 3% of the total fund, minimizing exposure to any single stock [5] - The ETF emphasizes stable sectors such as financials, healthcare, and industrials, which together account for over half of its holdings, while tech stocks represent just over 7% [6] Group 3 - The ETF has an average price-to-earnings multiple of just under 20, which is lower than the S&P 500 average of 25, indicating better value [7] - The fund features a low expense ratio of 0.04%, which is beneficial for long-term investments as it helps preserve overall returns [8] - The ETF yields 2.2%, surpassing the S&P 500 average of 1.2%, providing valuable cash flow for reinvestment or income [9] Group 4 - Over the past decade, the Vanguard Value Index Fund has generated total returns of around 210%, which is lower than the S&P 500's 300% but offers more stability and safety [9][10] - The Vanguard Value Index Fund is recommended as a buy-and-hold investment, ideal for those seeking safety or a long-term investment without constant management [11]