Core Insights - The Vanguard Value ETF (VTV) is highlighted as a preferable investment option over the Vanguard S&P 500 ETF (VOO) for those seeking passive income and better valuation [4][16] - The S&P 500 has seen a decline in yield, currently at 1.2%, while the Vanguard Value ETF offers a higher yield of 2.2% [3][6] Expense Ratios - The Vanguard S&P 500 ETF has an expense ratio of 0.03%, while the Vanguard Value ETF has a slightly higher expense ratio of 0.04% [2][6] - The minimal difference in fees translates to just one cent more per $100 invested in the Value ETF compared to the S&P 500 ETF [6] Yield and Valuation - The Vanguard Value ETF provides a 30-day SEC yield of 2.2%, significantly higher than the S&P 500 ETF's yield of 1.2% [6] - The price-to-earnings (P/E) ratio for the Value ETF is 19.6, compared to 27.2 for the S&P 500 ETF, indicating a more attractive valuation for the Value ETF [7] Composition and Holdings - The Vanguard Value ETF holds 335 stocks, while the S&P 500 ETF has 505 holdings, with a more concentrated top-heavy structure in the S&P 500 [7][11] - The top holdings of the Value ETF include Berkshire Hathaway (4%) and JPMorgan Chase (3.6%), while the S&P 500 ETF is dominated by companies like Nvidia (7.3%) and Microsoft (7%) [10] Performance and Returns - Over the last decade, the Vanguard Value ETF has increased by 111.5%, with a total return of 173.5%, indicating strong capital gains [12] - The investment strategy of the Value ETF focuses on the quality of companies held rather than solely on yield, contrasting with other ETFs that prioritize passive income [12][17] Market Positioning - The Vanguard Value ETF is positioned as a strong option for investors looking to diversify their portfolios and achieve higher passive income compared to the S&P 500 [16] - The ETF is recommended for those already invested in top growth stocks and seeking to balance their investments with value-oriented options [16]