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This Underrated Value ETF Could Turn Long-Term Investors Into Millionaires
Yahoo Finance· 2025-12-22 14:35
Key Points Investing in a value ETF is a smart way to gain exposure to undervalued stocks. With plenty of diversification, this fund can help minimize the impact of volatility. Over decades, you could earn $1 million or more with just a few hundred dollars per month. These 10 stocks could mint the next wave of millionaires › It's possible to earn $1 million or more in the stock market, and by investing in exchange-traded funds (ETFs), you can reach that goal with next to no effort on your part. ...
VTV vs. SPTM: Should Investors choose Vanguard's Value ETF or the S&P 1500's Stability?
Yahoo Finance· 2025-12-20 12:40
Core Insights - The article compares two ETFs: State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) and Vanguard Value ETF (VTV), highlighting their differing investment strategies and performance metrics [4][5]. Group 1: ETF Characteristics - SPTM offers broader exposure with 1,510 U.S. stocks across all market capitalizations, focusing heavily on technology (34%), financial services (13%), and consumer cyclicals (11%) [1]. - VTV targets large-cap value stocks, with significant allocations in financial services (25%), healthcare (15%), and industrials (13%), holding 331 positions [2]. - SPTM has a growth-oriented tilt, resulting in higher recent returns but also larger drawdowns compared to VTV, which is more defensive and income-focused [5][6]. Group 2: Performance Metrics - Since 2004, SPTM has delivered an annual total return growth of 10.2%, while VTV has achieved 9.3%. Over the last decade, SPTM's growth was 14.5% compared to VTV's 11.8% [6]. - Both ETFs slightly lagged behind the S&P 500, which rose 14.7% annually over the same period [6]. - VTV offers a higher dividend yield of 2.1%, one percentage point more than SPTM, appealing to income-focused investors [3][5]. Group 3: Investment Considerations - SPTM includes 1,000 additional stocks compared to the S&P 500, providing better market breadth, while its allocation to the "Magnificent Seven" is lower at 34% compared to 38% for the S&P 500 [7]. - VTV avoids many high-profile tech stocks, focusing instead on steady dividend-paying stocks, which may be appealing in a volatile market [8]. - The choice between SPTM and VTV ultimately depends on individual investor preferences, with VTV being favored for its income potential and lower risk profile [9].
3 Ultra-Safe Vanguard ETFs to Buy, Even if There's a Stock Market Sell-Off in 2026
The Motley Fool· 2025-12-18 04:15
Core Insights - The S&P 500 has shown significant growth, with an increase of over 15% in 2025, following gains of over 20% in both 2024 and 2023, compared to its historical average annual return of 9% to 10% [1][2] Group 1: ETF Performance and Characteristics - The Vanguard Total Stock Market ETF (VTI) is the largest ETF globally, surpassing $2 trillion in net assets, and includes thousands of companies not in the S&P 500, representing about 16% of the total U.S. stock market [5][6] - The Total Stock Market ETF is expected to perform similarly to the S&P 500 over the long term but may be more suitable for investors wanting full market participation [6][7] - The Vanguard Value ETF focuses on value stocks, which tend to perform better during market sell-offs, with major holdings in companies like JPMorgan Chase and Berkshire Hathaway, and offers a yield of 2.1% with a P/E ratio of 21.2 [9][10] - The Vanguard Consumer Staples ETF yields 2.2% and includes major companies like Walmart and Coca-Cola, which are expected to perform well during economic downturns due to their strong supply chains [12][13] Group 2: Market Trends and Investor Behavior - The S&P 500's rapid rise is attributed to strong earnings growth from key companies, including Nvidia, which, along with 19 others, constitutes about half of the index [2] - The consumer staples sector has underperformed in 2025, facing challenges from inflation and reduced consumer spending, but is expected to hold up during market sell-offs [11][13] - Investors are encouraged to use ETFs as part of a diversified portfolio, allowing for exposure to different sectors while managing risk [14]
Vanguard’s VTV Is Is Good For Many Investors, But VFVA Has A Lot More Potential
Yahoo Finance· 2025-12-17 18:42
Thinkstock For most investors, the Vanguard Value ETF (NYSE:VTV) has been a reliable workhorse, providing broad exposure to large, established US companies trading at what are arguably reasonable valuations. Quick Read The Vanguard Value ETF currently yields 2.03% but shows negative dividend growth of -1.67%. The Vanguard U.S. Value Factor ETF uses factor-based selection and targets mid-cap stocks with improving fundamentals. Ultimately, the Vanguard U.S. Value Factor ETF offers more upside potenti ...
Vanguard's VTV Is Is Good For Many Investors, But VFVA Has A Lot More Potential
247Wallst· 2025-12-17 17:42
For most investors, the Vanguard Value ETF (NYSE:VTV) has been a reliable workhorse, providing broad exposure to large, established US companies trading at what are arguably reasonable valuations. The hope is that the Vanguard Value ETF has delivered stability for those who have invested, all while providing a reliable income stream, which explains why it has become a core holding in many long-term portfolios. For the most part, the Vanguard Value ETF tracks a broad value index that is composed mostly of me ...
Vanguard Growth ETF vs. Vanguard Value ETF: Which ETF Will Outperform in 2026?
Yahoo Finance· 2025-11-05 13:13
Core Insights - Growth stocks have significantly outperformed value stocks in recent years, but historically, value stocks have outpaced growth stocks by over four percentage points annually since 1927 [1] - Vanguard offers two index funds for investors focusing on growth or value stocks: the Vanguard Growth ETF (VUG) and the Vanguard Value ETF (VTV), both of which are low-cost investment options [1] Vanguard Growth ETF - The Vanguard Growth ETF tracks an index of large-cap growth stocks, consisting of 160 stocks, with larger companies representing a larger percentage of the fund [3] - Major holdings include prominent tech companies such as Nvidia, Microsoft, Apple, and Amazon, with the top 10 holdings accounting for 60% of the fund's assets [4] - The fund has a low expense ratio of 0.04%, making it a cost-effective way to gain exposure to growth stocks [5] Vanguard Value ETF - The Vanguard Value ETF tracks an index of large-cap value stocks and includes over 300 different stocks, providing greater diversification as the top 10 holdings make up only 21% of the assets [6] - Key holdings in the Value ETF include JPMorgan Chase, Berkshire Hathaway, ExxonMobil, Walmart, and Johnson & Johnson, with the same low expense ratio of 0.04% as the Growth ETF [8] Performance Outlook - The Vanguard Growth ETF has outperformed the Vanguard Value ETF in recent years, but potential catalysts for value stocks could emerge in 2026 [7] - Predicting which ETF will outperform in 2026 is uncertain, and both funds are best suited for long-term investment strategies [9]
VTV Offers Higher Yield While SPTM Delivers Broader Growth
The Motley Fool· 2025-11-01 11:00
Core Insights - The article compares two ETFs: SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) and Vanguard Value ETF (VTV), highlighting their differences in diversification and value orientation Cost & Size - SPTM has a lower expense ratio of 0.03% compared to VTV's 0.04% - As of October 27, 2025, SPTM has a 1-year return of 17.39%, while VTV has a return of 8.71% - VTV offers a higher dividend yield of 2.09% compared to SPTM's 1.16% - SPTM has assets under management (AUM) of $11.49 billion, while VTV has significantly larger AUM of $207.8 billion - The 5-year beta for SPTM is 1.02, indicating higher volatility compared to VTV's beta of 0.86 [2][3] Performance & Risk Comparison - The maximum drawdown over 5 years for SPTM is 24.15%, while VTV's is lower at 17.03% - An investment of $1,000 would grow to $2,062 in SPTM over 5 years, compared to $1,810 in VTV [4] Fund Composition - VTV holds 314 large-cap U.S. stocks, with significant exposure to financial services (23%), industrials (16%), and healthcare (14%) - Major holdings in VTV include JPMorgan Chase, Berkshire Hathaway, and Exxon Mobil, providing liquidity and stability - SPTM covers a broader market with 1,510 stocks, heavily weighted towards technology (35%), featuring top positions in Nvidia, Apple, and Microsoft [5][6] Investment Considerations - VTV is suitable for income-focused investors due to its higher dividend yield and stability, while SPTM offers more growth potential through technology exposure but comes with increased risk [10]
The Vanguard Value ETF Is Not A Good Value
Seeking Alpha· 2025-10-27 13:15
Group 1 - Alan Brochstein is a pioneer in the cannabis investment sector, starting his career in the securities industry in 1986 and founding AB Analytical Services in 2007 to provide consulting for investment advisors [1] - He has been managing the investing group 420 Investor since 2013, focusing on publicly-traded cannabis stocks and moving the group to Seeking Alpha in 2023 [2] - The 420 Investor group covers 20 stocks, providing investment news, earnings report previews, and post-report analyses, along with a model portfolio and multiple weekly video analyses [2] Group 2 - New Cannabis Ventures, co-managed by Alan, has been a key provider of financial information in the cannabis industry since 2015 [1] - The investing group offers a monthly newsletter and a chat feature for investor questions, enhancing community engagement [2]
3 Unstoppable Growth ETFs That Could Turn $10,000 Into More Than $12 million With Practically Zero Effort
The Motley Fool· 2025-10-22 00:05
Core Insights - Transforming an initial investment of $10,000 into $12 million is feasible with time, strong growth ETFs, and consistent dollar-cost averaging [1][2] Investment Strategy - An initial investment of $10,000 with an additional $2,000 monthly for 30 years can yield over $12.5 million at a 15.3% average annual return, which reflects the S&P 500's performance over the past decade [2] - The S&P 500's return profile is expected to remain stable over the coming decades unless there are significant changes in the American economy [2] ETF Performance - The Invesco QQQ Trust has outperformed the S&P 500 with a cumulative return of 536.4% (20.3% annual) over the past decade, compared to the S&P's 315.3% (15.3% annual) [5] - The Invesco QQQ Trust has consistently outperformed the S&P 500 more than 87% of the time on a rolling-12-month basis, indicating stable performance [6] - The Vanguard Growth ETF has also outperformed the S&P 500, achieving an 18% annual return over the past decade, while the Vanguard Value ETF only provided a 12.1% annual gain [8] Sector Focus - The Vanguard Information Technology ETF focuses solely on technology stocks, with significant holdings in Nvidia, Apple, and Microsoft, which together account for nearly 44% of the ETF [10] - This concentration in high-performing tech stocks has resulted in an average annual return of 23.4% for the Vanguard Information Technology ETF over the past decade [11] Long-term Potential - A hypothetical investment in the Vanguard Information Technology ETF at a 23.4% return could grow to $67.5 million over 30 years with the same initial and monthly contributions [12] - Investing in growth-oriented ETFs with a strong tech focus is a solid long-term strategy, allowing for automated investment without the need for individual stock selection [13]
The Smartest Index ETF to Buy With $1,000 Right Now
The Motley Fool· 2025-10-19 10:37
Core Argument - Investing in the S&P 500 index is a viable option, but considering value stocks may provide a smarter choice given current valuations [1][2]. Investment Strategy - Starting to invest, even with a small amount like $1,000, is crucial for investors, and consistently buying into the market can leverage dollar-cost averaging [3][6]. - The Vanguard S&P 500 ETF is highlighted as a top choice due to its low expense ratio of 0.03%, making it an affordable way to gain exposure to the S&P 500 [4]. Valuation Comparison - The Vanguard Value ETF offers a portfolio of large U.S. companies with lower valuations compared to the broader market, which is significant as the S&P 500 approaches all-time highs [8]. - The average price-to-earnings (P/E) ratio for the Vanguard Growth ETF is around 40, while the Vanguard S&P 500 Index ETF has a P/E of about 29, and the Vanguard Value ETF has a P/E of just under 21, indicating it is cheaper than both [9][10]. - The price-to-book (P/B) ratios further illustrate this trend, with the Vanguard Growth ETF at 12.5, the S&P 500 Index ETF at 5.2, and the Value ETF at 2.8, suggesting a more favorable valuation for the Value ETF [11]. Investment Recommendations - Investors are encouraged to start with a basic investment strategy and consider incorporating value stocks into their portfolio for diversification, especially if they are already invested in growth stocks [12][13].