Vanguard’s VTV Is Is Good For Many Investors, But VFVA Has A Lot More Potential

Core Insights - The Vanguard Value ETF has been a reliable investment option, providing exposure to large, established US companies at reasonable valuations [1][3] - The shift in value investing focuses on identifying companies with improving fundamentals and strong cash flows rather than just cheap stocks [3][7] Performance Metrics - The Vanguard Value ETF currently yields 2.03% with a negative dividend growth of -1.67% [4][6] - Shareholders earn an annual dividend of approximately $3.90, indicating steady earnings and consistent dividends [6] Sector Composition - The ETF primarily tracks a broad value index composed of mega and large-cap companies, with significant representation from finance, healthcare, energy, and consumer staples [5] Investment Strategy - The Vanguard U.S. Value Factor ETF employs a factor-based selection strategy, targeting mid-cap stocks with improving fundamentals, offering more upside potential [4][8] - The traditional approach of the Vanguard Value ETF may not drive income-focused portfolios due to its negative dividend growth, despite providing steady cash [7]