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

Why Large Cap Value

Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.03%, making it the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.85%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector -- about 24.4% of the portfolio. Healthcare and Industrials round out the top three.

Looking at individual holdings, Micron Technology Inc (MU) accounts for about 4.85% of total assets, followed by Jpmorgan Chase & Co (JPM) and Berkshire Hathaway Inc (BRK/B).

The top 10 holdings account for about 20.55% of total assets under management.

Performance and Risk

VTV 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 gained about 16.84% so far this year and is up about 28.25% in the last one year (as of 08/04/2026). In the past 52-week period, it has traded between $176.88 and $222.99.

The ETF has a beta of 0.75 and standard deviation of 12.09% for the trailing three-year period, making it a medium risk choice in the space. With about 311 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard Value Index Fund ETF Shares 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 $82.57 billion in assets, Schwab U.S. Dividend Equity ETF has $104.14 billion. IWD has an expense ratio of 0.18% and SCHD charges 0.06%.

Bottom-Line

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

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.

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This article originally published on Zacks Investment Research (zacks.com).

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