Should Vanguard Value ETF (VTV) Be on Your Investing Radar?

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Vanguard Value ETF (VTV) is a passively managed exchange traded fund launched on 01/26/2004.The fund is sponsored by Vanguard. It has amassed assets over $132.41 billion, making it the largest ETFs attempting to match the Large Cap Value segment of the US equity market.Why Large Cap ValueCompanies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Annual operating expenses for this ETF are 0.04%, making it the least expensive products in the space.It has a 12-month trailing dividend yield of 2.21%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Financials sector--about 23.20% of the portfolio. Healthcare and Industrials round out the top three.Looking at individual holdings, Broadcom Inc (AVGO) accounts for about 3.41% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Jpmorgan Chase & Co (JPM).The top 10 holdings account for about 6.64% of total assets under management.Performance and RiskVTV seeks to match the performance of the CRSP U.S. Large Cap Value Index before fees and expenses. The CRSP U.S. Large Cap Value Index measures the investment return of large-capitalization value stocks.The ETF has added about 21.81% so far this year and is up about 33.06% in the last one year (as of 11/12/2024). In the past 52-week period, it has traded between $137.55 and $179.17.The ETF has a beta of 0.87 and standard deviation of 14.13% for the trailing three-year period, making it a medium risk choice in the space. With about 344 holdings, it effectively diversifies company-specific risk.AlternativesVanguard Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VTV is an excellent option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.The iShares Russell 1000 Value ETF (IWD) and the Schwab U.S. Dividend Equity ETF (SCHD) track a similar index. While iShares Russell 1000 Value ETF has $61.57 billion in assets, Schwab U.S. Dividend Equity ETF has $65.90 billion. IWD has an expense ratio of 0.19% and SCHD charges 0.06%.Bottom-LineWhile an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vanguard Value ETF (VTV): ETF Research Reports JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report iShares Russell 1000 Value ETF (IWD): ETF Research Reports Schwab U.S. Dividend Equity ETF (SCHD): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks