The 0.04% Fee ETF That Turned $10,000 Into Over $35,000 Like Magic

Core Insights - The Vanguard Value Index Fund ETF (VTV) captures the market shift from momentum to fundamentals, holding over 300 large-cap U.S. companies with lower price-to-book and price-to-earnings ratios than the broader market [2] - VTV generates steady income through dividends, yielding 2.05% and growing its annual dividend at approximately 5% over the past decade, creating a compounding income stream [3] - Over the past year, VTV returned 18.9%, outperforming the S&P 500's 13.9%, as investors rotated into financials, energy, and industrials [4] Fund Performance - VTV has a low-cost structure of 0.04% annually, preserving returns while its diversified portfolio spreads risk across hundreds of holdings [5] - The fund delivered 89.5% returns over five years and 254% over ten years, demonstrating the effectiveness of disciplined value investing [5] - VTV's performance lagged from 2017 to 2021 during a technology-driven market, highlighting the trade-offs of value investing [6] Sector Exposure - The fund is heavily concentrated in cyclical sectors, with financials representing 20.4% of holdings, making it sensitive to interest rate changes and credit cycles [6] - VTV serves best as a counterbalance to growth exposure, providing income, downside cushioning, and cyclical upside when the market favors fundamentals [7]