Core Viewpoint - Vanguard Value ETF is projected to have a positive year in 2025, but its performance is significantly lagging behind growth stocks and the S&P 500, making it a potential investment opportunity for those seeking value [1][2][9]. Performance Comparison - As of 2025, Vanguard Value ETF is up approximately 8%, while Vanguard Growth ETF has increased by around 26%, and the Vanguard S&P 500 ETF is up about 17% [8]. - The average price-to-earnings (P/E) ratio for Vanguard Growth ETF is 39, compared to approximately 27 for the S&P 500 and just under 20 for Vanguard Value ETF, indicating a significant valuation difference [11]. Investment Strategy - Vanguard Value ETF focuses on large companies and employs various metrics such as book-to-price ratio and dividend-to-price ratio to identify value stocks [4][5][6]. - The current market trend favors growth stocks, but for conservative investors or those anticipating a market correction, adding Vanguard Value ETF could be a prudent diversification strategy [12][13].
Is Vanguard Value ETF Poised for Gains in 2025?
The Motley Fool·2025-09-18 10:15