Meet the Low-Cost ETF That Solves the Vanguard Morningstar Value ETF's Biggest Flaw. Here's Why It's a Magnificent Buy in September.
Key PointsThere is no crossover between the Morningstar's U.S. Large Cap Value index and U.S. Large Cap Growth index.
The Vanguard Morningstar Value ETF (VTV) is the world's largest value-oriented exchange-traded fund with $188 billion in net assets. It charges a low 0.03% expense ratio, matching the fee structure of the world's largest ETF, the Vanguard S&P 500 ETF (VOO). This cost-effectiveness allows investors to gain exposure to leading value stocks.
The fund is particularly suited for those seeking companies valued for their current earnings rather than future growth potential. As a result, VTV has a higher weight in sectors such as financials, healthcare, industrials, and consumer staples compared to the Vanguard S&P 500 ETF. This approach has yielded solid returns, with the fund delivering a total return of 67.9% over the past three years, even without including key artificial intelligence (AI) stocks like Nvidia.
The simplicity of VTV contributes to its effectiveness.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
