1 No-Brainer Value Vanguard ETF to Buy Right Now for Less Than $200

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24-02-2025

Indexes have been soaring in recent quarters, led by growth stocks as investors pile into themes like artificial intelligence and quantum computing. And optimism about an improving economic environment -- with lower interest rates -- ahead also has fueled gains. Strong economies tend to favor growth stocks as these companies can more easily expand in these types of environments.
All of this is fantastic, but it's also resulted in some stocks reaching pretty expensive levels. In fact, the S&P 500 Shiller CAPE ratio, a valuation measure that considers a company's price and earnings over time, illustrates this. It recently passed a level it's only reached twice before in the benchmark's more than 60-year history.
This means now is a great time to search for value in the market and add some reasonably priced players to your portfolio. And if you don't have time to sift through the market looking for stocks, I've got an easy and quick way for you to automatically add today's top large-cap value stocks to your portfolio. That's through buying one no-brainer exchange-traded fund (ETF) from Vanguard -- and you can do that right now for less than $200.
ETFs offer you the opportunity to gain exposure to many stocks according to a particular theme -- such as value in this case, or in other cases industries like biotech or consumer goods. They also allow you to track a particular index, such as the S&P 500.
It's very easy to buy an ETF since they trade, just like a stock, daily on the market, so you can pick them up as you would a stock. The one difference to be aware of is ETFs come with management fees as expressed through an expense ratio. You'll want to choose an ETF with a ratio of less than 1% to ensure the fees don't eat unduly into your gains over time.
Now, let's consider this value ETF that I think would make a smart addition to your portfolio right now. I'm talking about the Vanguard S&P 500 Value ETF (NYSEMKT: VOOV), an asset that tracks roughly 400 value stocks in the S&P 500 Value Index. It mimics the composition of that index and therefore replicates its performance. This ETF has produced steady gains for investors over time, advancing 110% over the past decade.
Of course, this may not seem like a lot compared to the explosive triple-digit gains of certain tech stocks -- like Nvidia, for example -- in just one year. But it's important to remember that value stocks may not offer explosive growth fast, but they do offer you a certain level of security and stability over time.
Importantly, the Vanguard S&P 500 Value ETF's expense ratio is 0.07%, so it fits my investment criteria here.
You may be surprised to learn that, today, technology stocks are the most heavily weighted industry in the Vanguard S&P 500 Value ETF. Though tech stocks have soared in recent times, many still offer reasonable valuations, making them good fits for the value index and this fund that tracks it. The fund's biggest holdings are industry giants Apple, Microsoft, and Amazon.
The top 10 holdings also include stocks from a variety of other industries -- from healthcare to financials and oil. Financials and healthcare are the second- and third-most heavily weighted industries, respectively, among the 11 industries represented in the fund.
So, buying the fund offers you instant diversification. This is positive as it ensures you're not too exposed to just one area, so if one stock or sector suffers, others may advance and compensate.
It's also important to remember that this ETF may evolve to reflect the top value stocks of the times, offering you exposure to these players. And you won't have to lift a finger.
All of this means, if you're looking to add a few value stocks to your portfolio, buying shares of the Vanguard S&P 500 Value ETF is a no-brainer way to get the job done -- and potentially reap the rewards well into the future.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
1 No-Brainer Value Vanguard ETF to Buy Right Now for Less Than $200 was originally published by The Motley Fool