Want to Invest in Top Growth Stocks Like Amazon, Apple, and Microsoft but Avoid Nvidia? Consider This Low-Cost Vanguard ETF That’s Up 24.8% This Year.
The Vanguard Russell 1000 Value ETF is crushing the S&P 500 due to a unique mix of traditional blue chip value stocks and mature tech-focused companies.
Investors seeking to profit from growth stocks without Nvidia's influence may consider the low-cost Vanguard Russell 1000 Value ETF (VONV), which is up 24.8% this year. This ETF, a modern take on value stocks, holds Amazon, Apple, and Microsoft as its top three holdings, totaling 17.4% of the portfolio. The ETF's strategy categorizes some established tech companies as value stocks, giving it a unique approach compared to growth-focused ETFs.
With a lower price-to-earnings ratio (21.6) and a 1.5% dividend yield, the Vanguard Russell 1000 Value ETF is more affordable and income-focused than its growth-focused peers. The ETF's fees are minimal at 0.06%, and its strong performance in key value sectors like energy, consumer staples, and healthcare, alongside lower exposure to semiconductors, has contributed to its outperformance relative to the S&P 500.
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