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. 

finviz dynamic chart for VTV

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%).

Fund Overview

  • Net Assets 114.19
  • BYTD Daily Total Return 15.58%
  • Yield 2.27%

Fund Operation

  • 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.

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