Vanguard Value ETF is heading for an up year in 2025, but the real reason to buy it is that it isn't up as much as its growth counterpart or the S&P 500.Vanguard Value ETF (VTV 0.37%) is up around 8% so far in 2025. From a historical perspective, that's not a bad showing, given that investors generally expect the S&P 500 index to provide a 10% return, on average, each year.But Vanguard Value ETF is lagging well behind the broader market in 2025. Does that make it a bad investment idea or the right one for y ...

The market is so focused on growth that it might be time to shift some cash into value, since the pendulum will eventually reverse its course.In 2000, the market was trading near all-time highs and was being driven higher by technology stocks. Until it wasn't, and the stock market crashed back down, with a difference between growth and value stocks on clear display.If you are worried about the growth bias in the market today, Vanguard Value ETF (VTV 0.37%) could be a good place to park $500, or more, right ...

Core Insights - Vanguard recommends a significant shift in asset allocation, suggesting 70% of the portfolio should be in fixed income and 30% in stocks, focusing on specific market segments [1][4]. Group 1: Expected Returns - Vanguard's analysts project U.S. equities to yield annual returns between 3.3% and 5.3% over the next decade, with growth stocks expected to return only 1.9% to 3.9% [2]. - The aggregate U.S. bond market is anticipated to return between 4% and 5% per year on average, indicating a more favorable outlook for bonds compared to equities [2]. Group 2: Valuation Concerns - The S&P 500 ETF is viewed as expensive, with a forward P/E ratio of 22.1, marking a historically high level, and the CAPE ratio has reached levels not seen since the dot-com bubble [3]. - The risk premium for equities over fixed income has diminished significantly due to sustained higher interest rates [3]. Group 3: Portfolio Composition - The TVAA model portfolio allocates 37% to the Vanguard Total Bond Market ETF, which tracks investment-grade U.S. bonds, reflecting a heavy weighting on bonds [7]. - The model also allocates 21% to international bonds, with the Vanguard Total International Bond ETF yielding 5.1% and employing a hedging strategy to mitigate foreign-exchange risk [9][10]. Group 4: Stock Selection - Vanguard's analysts favor U.S. value stocks over growth stocks, expecting value stocks to return between 5.8% and 7.8% annually, while only 11% of the stock allocation is directed towards U.S. value stocks [14]. - The Vanguard Value ETF is recommended as a suitable option for investors seeking exposure to U.S. large-cap value stocks [15]. Group 5: Investment Strategy - While Vanguard suggests a 70% allocation to fixed income, it acknowledges that equities have historically provided stronger long-term returns, advising a balanced approach for most investors [18].

Core Viewpoint - The stock market is approaching all-time highs with stretched valuations, suggesting it may be time to incorporate more value investments into portfolios [1] Group 1: Market Valuation - The Vanguard S&P 500 ETF has an average price-to-earnings (P/E) ratio of 27.6, indicating high valuations driven by enthusiastic investors [2][8] - The S&P 500 index's average price-to-book (P/B) ratio is 5, with large growth stocks, particularly in technology, contributing to these elevated metrics [8] - The Vanguard Growth ETF has an even higher P/E ratio of 39.4 and a P/B ratio of 12.1, further illustrating the growth-focused market environment [8] Group 2: Vanguard Value ETF - The Vanguard Value ETF tracks the CRSP US Large Cap Value Index, focusing on large companies categorized as "value" based on various financial metrics [3][5] - The ETF's average P/E ratio is 19.6 and average P/B ratio is 2.8, presenting a more reasonable valuation compared to the broader market [9][10] - The Vanguard Value ETF offers a low expense ratio of 0.04%, making it an attractive option for investors looking to mitigate risks associated with high growth valuations [11] Group 3: Investment Strategy - Investors may feel uncomfortable with current market valuations, but incorporating value investments like the Vanguard Value ETF can provide a counterbalance to growth-heavy portfolios [9][10] - The current market trend favors growth stocks, suggesting a potential shift towards value investments could be prudent [11]

Core Viewpoint - The SPDR Russell 1000 Yield Focus ETF (ONEY) is a passively managed ETF aimed at providing broad exposure to the Large Cap Value segment of the US equity market, with assets exceeding $904.23 million [1]. Group 1: Fund Overview - Launched on December 2, 2015, the ETF is sponsored by State Street Investment Management [1]. - The fund targets large cap companies, which typically have a market capitalization above $10 billion, offering a stable investment option with lower risk compared to mid and small cap companies [2]. Group 2: Investment Characteristics - Value stocks, which the ETF focuses on, generally have lower price-to-earnings and price-to-book ratios, and have historically outperformed growth stocks in most markets [3]. - The ETF has an annual operating expense ratio of 0.2%, making it one of the more cost-effective options in its category, and it offers a 12-month trailing dividend yield of 3.01% [4]. Group 3: Sector Exposure and Holdings - The ETF has the largest allocation to the Consumer Staples sector at approximately 14.3%, followed by Industrials and Consumer Discretionary [5]. - United Parcel Service Cl B (UPS) constitutes about 2.4% of total assets, with the top 10 holdings representing around 14.04% of total assets under management [6]. Group 4: Performance Metrics - The ETF aims to match the performance of the Russell 1000 Yield Focused Factor Index, which includes large-cap U.S. equity securities with high value, high quality, and low size characteristics [7]. - As of August 25, 2025, the ETF has returned approximately 7.59% year-to-date and 8.88% over the past year, with a trading range between $95.52 and $117.55 in the last 52 weeks [8]. Group 5: Alternatives and Market Position - The ETF holds a Zacks ETF Rank of 3 (Hold), indicating it is a reasonable option for investors seeking exposure to the Large Cap Value segment [10]. - Alternatives include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), which have significantly larger asset bases and lower expense ratios [11]. Group 6: General ETF Insights - Passively managed ETFs are increasingly popular among both retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [12].

Core Viewpoint - The Vanguard Mega Cap ETF offers a low-cost investment option for those looking to gain exposure to large-cap stocks, potentially outperforming traditional S&P 500 ETFs due to its concentrated holdings in mega-cap companies [1][13]. Cost Comparison - The Vanguard Mega Cap ETF has an expense ratio of 0.07%, slightly higher than the 0.03% of the Vanguard S&P 500 ETF, resulting in a $4 difference for every $10,000 invested [2]. Holdings Concentration - The Vanguard Mega Cap ETF holds 185 stocks, significantly fewer than the 504 stocks in the Vanguard S&P 500 ETF, indicating a higher concentration in its top holdings [5][8]. - The top 20 holdings in the Vanguard Mega Cap ETF account for 57.2% of the fund, compared to 48.3% for the S&P 500 ETF [7]. Performance Metrics - The Mega Cap ETF has achieved a total return of 308.1% over the last decade, outperforming the S&P 500 ETF's 284.2% total return [10]. Sector Focus - The Mega Cap ETF is more growth-oriented, with significant weightings in technology and consumer discretionary sectors, where major companies like Nvidia, Microsoft, and Amazon dominate [9][10]. Investment Strategy - The Vanguard Mega Cap ETF is suitable for investors seeking low-cost, diversified exposure to the largest U.S. companies, and can be effectively paired with smaller-cap individual stocks for enhanced diversification [11][12].

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]

Core Viewpoint - A significant shift is anticipated in the stock market, suggesting a potential transition from growth stocks to value stocks as the latter are currently undervalued and may outperform in the near future [4][7][8]. Group 1: Market Trends - Growth stocks have consistently outperformed value stocks since the late 1990s, driven by technological advancements and low interest rates [4][6]. - Morningstar's Q3 2025 Stock Market Outlook indicates that value stocks are undervalued relative to the broader market, presenting a potential investment opportunity [7]. - U.S. value stocks are currently trading at a price-to-earnings ratio of 10, significantly lower than the 30 for growth stocks, indicating a potential for higher returns [8]. Group 2: Performance of Key Stocks - The "Magnificent Seven" stocks, which have driven market gains, are now lagging behind the broader market, suggesting a possible shift in market leadership [8][11]. - Major growth stocks like Apple, Alphabet, and Tesla have seen declines year-to-date, while the S&P 500 has increased by 6%, indicating a potential trend reversal [11]. Group 3: Economic Factors - Concerns about economic slowdown and market crashes are rising among U.S. consumers, with 46% expressing serious concerns, which could disproportionately affect overvalued growth stocks [13][14]. - The Federal Reserve's sustained high interest rates are impacting growth companies more than value companies, which are better suited to navigate such conditions [15]. Group 4: Investment Strategy - The Vanguard Value ETF offers a trailing dividend yield of just under 2.2%, providing a reliable income stream for investors amid less exciting growth potential [17]. - Investors are encouraged to consider a balanced portfolio that includes both value and selective growth investments, allowing for defensive positioning while still pursuing growth opportunities [18][19].

Core Viewpoint - The Vanguard Growth ETF (VUG) is a popular choice for investors, tracking the CRSP US Large Cap Growth Index, which includes growth stocks from the S&P 500 [1] Group 1: ETF Composition and Performance - The Vanguard Growth ETF holds approximately 166 stocks, while its value counterpart, the Vanguard Value ETF (VTV), contains 331 stocks [2] - The Vanguard Growth ETF is heavily weighted in technology, with tech stocks making up 58.5% of its portfolio, and its top three holdings—Microsoft, Nvidia, and Apple—account for nearly 32% of its total holdings [3] - Over the past decade, the Vanguard Growth ETF has achieved an average annual return of 15.3%, outperforming the Vanguard S&P 500 ETF (12.8%) and the Vanguard Value ETF (10%) [5] Group 2: Comparison with Invesco QQQ Trust - The Invesco QQQ Trust has outperformed both the Vanguard 500 ETF and the Vanguard Growth ETF over the past decade, generating an average annual return of 17.7% [7] - The Invesco QQQ Trust is also tech-heavy, with 57.2% of its portfolio in the technology sector, but is less top-heavy than the Vanguard Growth ETF, with its top three holdings representing less than 25% of its portfolio [10] - The top holdings of the Vanguard Growth ETF and Invesco QQQ Trust are similar, but the weightings differ, with Microsoft at 11.3%, Nvidia at 10.3%, and Apple at 10.1% for Vanguard Growth, compared to 8.8%, 8.7%, and 7.3% for Invesco QQQ [11] Group 3: Investment Strategy - Both the Vanguard Growth ETF and Invesco QQQ Trust are suitable for growth investors, but the Invesco QQQ Trust is preferred due to its superior performance and less concentration in top holdings [12]