Why Smart Investors Are Loading Up on This Top Vanguard ETF Right Now

Core Insights - The Vanguard Value ETF (VTV) has outperformed the S&P 500 ETF and Total Stock Market ETF in 2026, returning 7.7% year-to-date compared to 1.5% and 1.8% respectively [1] - The ETF focuses on large-cap value stocks, with its top 10 holdings representing only 20.8% of its assets, contrasting with the S&P 500 ETF's 34% concentration in the "Magnificent 7" stocks [1] - The performance divergence is attributed to a market rotation away from mega-cap tech stocks, which have underperformed in 2026 [1] ETF Performance - Vanguard Value ETF returned 7.7% year-to-date in 2026, while the S&P 500 ETF returned 1.5% and the Total Stock Market ETF returned 1.8% [1] - The Magnificent 7 stocks, including Microsoft and Nvidia, have seen significant declines, with Microsoft down 18% and Nvidia up only 5.6% [1] - The median S&P 500 stock has risen approximately 6.8%, indicating broader market strength outside of the largest tech stocks [1] Holdings and Sector Allocation - The Vanguard Value ETF tracks the CRSP US Large Cap Value Index and holds around 312 stocks, focusing on traditional value sectors rather than high-growth momentum [1] - The top holdings include JPMorgan Chase (3.25%), Berkshire Hathaway (3.04%), and Exxon Mobil (2.42%), with no single stock dominating the portfolio [1] - Sector allocations include financial services (22%), industrials (16.7%), healthcare (14.3%), and consumer discretionary (9.1%), benefiting from gains in these areas amid a shift away from tech [1] Investment Strategy - The Vanguard Value ETF's low expense ratio of 0.03% supports long-term compounding and minimizes costs for investors [1] - The ETF provides a defensive core for portfolios, emphasizing undervalued large-cap stocks with solid fundamentals across multiple sectors [1] - In a market environment vulnerable to momentum-driven concentration risks, the Value ETF offers a balanced, low-cost way to maintain equity exposure [1]