Vanguard Value ETF (VTV) seeks to track the performance of a benchmark index that measures the investment return of large-capitalization value stocks. The fund employs an indexing investment approach designed to track the performance of the CRSP US Large Cap Value Index, a broadly diversified index predominantly made up of value stocks of large U.S. companies.
VTV is the largest among value ETFs by about $14 billion in assets and it is tied with a few category funds as the cheapest, at just 4 basis points (a basis point is one one-hundredth of a percent).
It has a diversified portfolio of more than 330 U.S. stocks that are selected based on a variety of value metrics, including price-to-book (P/B), historic price-to-earnings (P/E), forward price-to-earnings (forward P/E), price-to-dividend (P/D) and price-to-sales (P/S).
VTV has a heavy large-cap tilt. About 85% of the fund’s assets invest in large companies such as top holdings Berkshire Hathaway, Johnson & Johnson and Procter & Gamble. The rest is sprinkled among larger mid-cap stocks.
Healthcare, which often straddles the line between value and growth, is the largest sector represented at 20% of assets. But most of the other top sectors are more orthodox value areas: financials (18%), industrials (12%) and consumer staples (12%).
- Net Assets 114.19
- BYTD Daily Total Return 15.58%
- Yield 2.27%
- Annual Report Expense Ratio (net) 0.04%
- Holdings Turnover 10.00%
- Total Net Assets 97,793.76
Sector Weightings (%)
- Basic Materials 2.92%
- Consumer Cyclical 4.11%
- Financial Services 22.11%
- Real Estate 2.85%
- Consumer Defensive1 0.97%
- Healthcare 19.07%
- Utilities 5.70%
- Communication Services 6.78%
- Energy5.25%Industrials 12.68%
- Technology 7.56%
Top 10 Holdings (21.02% of Total Assets)
- Berkshire Hathaway Inc Class B(BRK.B) 2.97%
- JPMorgan Chase & Co(JPM) 2.94%
- Johnson & Johnson(JNJ) 2.73%
- UnitedHealth Group Inc(UNH) 2.23%
- Procter & Gamble Co(PG ) 2.11%
- Bank of America Corp(BAC ) 1.90%
- Intel Corp(INTC) 1.64%
- Comcast Corp Class A(CMCSA) 1.56%
- Exxon Mobil Corp(XOM) 1.49%
- Verizon Communications Inc(VZ) 1.45%
In conclusion, Vanguard Value ETF is an inexpensive, straightforward, and high-quality ETF is best for investors that are seeking value.