Latest news with #VanguardValueETF
Yahoo
23-05-2025
- Business
- Yahoo
1 Top Vanguard ETF to Buy Right Now
The Vanguard Value Index Fund ETF, by targeting value stocks, can provide investors with long-term stability. When the market crashed earlier this year, the ETF's losses were more modest. Amid market uncertainty, more investors could shift to value stocks. 10 stocks we like better than Vanguard Index Funds - Vanguard Value ETF › The S&P 500 is in positive territory for the year as of Monday's close -- up over 1%. But it has been a volatile year, and that's putting it lightly. In April, with the advent of reciprocal tariffs, the index plummeted and was down more than 15% since the start of the year. For investors, the big question is how the market performs from here on out. Will it continue to rally, or will tariffs chip away at earnings and put pressure on stocks yet again? Trying to predict what will happen is incredibly difficult, which is why timing the market is risky and usually not worth your time, as you can miss out on gains by doing so. But if you are worried about the market or just want a safe place to put your money, either for the short term or the long term, then there's one exchange-traded fund (ETF) you should consider right now: the Vanguard Value Index Fund ETF (NYSEMKT: VTV). The Vanguard Value Index Fund ETF invests in value stocks, which can be an ideal option right now. A big risk for investors these days is getting caught up with stocks that have gone up sharply in value. The ETF averages a price-to-earnings multiple of just over 18, which is lower than the current S&P 500 average of 24. At elevated valuations, the risk for a correction is high. Consider that while the S&P 500 was down as much as 15% this year, the ARK Innovation ETF, which focuses on growth stocks, fared even worse; at its low point, its year-to-date losses were nearly 29%. Growth stocks may have more upside when times are good, but when times aren't so good, they can quickly nosedive. For investors who don't want that kind of volatility, value stocks can be much safer options. By comparison, the Vanguard Value fund's lowest point this year was a year-to-date loss of 9%. While it won't let you avoid a downturn in the market, it can help shield your portfolio from deeper losses in the worst of times. An important feature of the ETF is that just 6% of its portfolio is in tech stocks. The bulk of its position is in less volatile and more resilient sectors, including financials (23%), healthcare (16%), and industrials (15%). Berkshire Hathaway, JPMorgan Chase, and ExxonMobil are the top three stocks in the fund, making up a little over 9% of the Vanguard's entire portfolio. That's good news for investors because it means limited exposure to any one stock. There are 331 stocks in the ETF, which allows the fund to spread out its position. The S&P 500 is highly dependent on the most valuable stocks in the market. Over the past decade, the Vanguard ETF has, however, underperformed the broader index, based on total returns (which include dividends). While the above chart may look concerning, it's not surprising given how fast high-growth stocks have been soaring for much of the past five years. While 2022 was a bad year, the market has done well overall. In each of the past two years, the S&P 500 generated gains in excess of 20%, which isn't common, its long-run average being around 10%. When growth stocks are hot, the difference in performance between the S&P 500 and this value-focused Vanguard fund will be steep. But in the above chart you can see that the gap wasn't nearly as significant before 2020 as it has become. Nowadays, with valuations back at elevated levels, there could be some rotation into more value-oriented stocks, especially as investors grow concerned about where the market is headed. And that could make the Vanguard Value Index Fund ETF a market beater in the years ahead. Before you buy stock in Vanguard Index Funds - Vanguard Value ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Index Funds - Vanguard Value ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $807,814!* Now, it's worth noting Stock Advisor's total average return is 962% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, JPMorgan Chase, and Vanguard Index Funds-Vanguard Value ETF. The Motley Fool has a disclosure policy. 1 Top Vanguard ETF to Buy Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
Should Vanguard Value ETF (VTV) Be on Your Investing Radar?
Launched on 01/26/2004, the Vanguard Value ETF (VTV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market. The fund is sponsored by Vanguard. It has amassed assets over $134.51 billion, making it the largest ETFs attempting to match the Large Cap Value segment of the US equity market. Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts. 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. Investors 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 2.27%. Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation to the Financials sector--about 25% of the portfolio. Healthcare and Industrials round out the top three. Looking at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 3.45% of total assets, followed by Jpmorgan Chase & Co (JPM) and Exxon Mobil Corp (XOM). The top 10 holdings account for about 8.92% of total assets under management. 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 2.84% so far this year and is up roughly 8.46% in the last one year (as of 05/19/2025). In the past 52-week period, it has traded between $153.67 and $181.87. The ETF has a beta of 0.82 and standard deviation of 14.66% for the trailing three-year period, making it a medium risk choice in the space. With about 342 holdings, it effectively diversifies company-specific risk. Vanguard 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 $61.94 billion in assets, Schwab U.S. Dividend Equity ETF has $68.98 billion. IWD has an expense ratio of 0.19% and SCHD charges 0.06%. 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. 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 Exxon Mobil Corporation (XOM) : Free Stock Analysis Report iShares Russell 1000 Value ETF (IWD): ETF Research Reports Schwab U.S. Dividend Equity ETF (SCHD): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
20-04-2025
- Business
- Yahoo
The Best Value ETF to Invest $500 in Right Now
Let's say you have $500 to invest and you're wondering where to park it. That's a great position to be in right now since the overall stock market has slumped, turning many solid stocks into bargain stocks. I suggest you give some thought to the Vanguard Value ETF (NYSEMKT: VTV). Here's an introduction to it, along with some considerations. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » As the name says, it's an exchange-traded fund (ETF) -- a fund that trades like a stock. Vanguard is known for low fees, so it shouldn't surprise anyone that the ETF's low expense ratio of 0.04% means you'll pay just $4 per year for each $10,000 you have invested in the fund. The Vanguard Value ETF is an index fund, tracking the CRSP US Large Cap Value Index, which itself is focused on holding stocks of large and mid-size companies that seem undervalued. Value investing -- seeking undervalued companies that offer a margin of safety -- is a popular strategy. It tends to favor slower-growing and steadier companies over fast-growing ones that can often be overvalued. Here are the ETF's recent top holdings: Stock Weight in ETF Berkshire Hathaway 3.45% JPMorgan Chase 3.30% ExxonMobil 2.17% Broadcom 2.06% UnitedHealth Group 1.93% Walmart 1.93% Procter & Gamble 1.81% Johnson & Johnson 1.76% Home Depot 1.74% AbbVie 1.63% Source: as of Feb. 28. There were recently 340 stocks in the fund, with a median market capitalization of $142 billion. They had average annual earnings growth over the past five years of 10% and a recent price-to-earnings ratio (P/E) of 20.2. In contrast, the also well-regarded Vanguard Growth ETF (NYSEMKT: VUG) recently had an average annual earnings increase for its holdings of 27.2% and a P/E of 27.2. The Vanguard Value ETF also had an attractive turnover rate of 8.8% as of the end of 2024, meaning that all the buying and selling in the fund represented just 8.8% of its total fund value. The lower the turnover rate, the more the fund is buying and holding. Fully 22.4% of the ETF's assets were in financial companies, 15.6% in healthcare stocks, 15.1% in industrials, and 8.9% each in consumer discretionary and consumer staples companies. So, why should you consider investing in the Vanguard Value ETF? Well, for one thing, it's simply a solid ETF, with low fees. But if you, like many people, see a recession looming, you might want to favor value-focused investing. (A recession isn't guaranteed to be around the corner, by the way.) Growth stocks are often somewhat or very overvalued, because their gains attract lots of investors, and they can have further to fall in a market pullback. They're epitomized by the "Magnificent Seven" stocks -- none of which were recently held in the Vanguard Value ETF, though they can be, depending on their valuations. Value stocks, on the other hand, tend to be undervalued or perhaps at most fairly valued, and they can be more resilient in market pullbacks. This ETF -- or any ETF -- isn't necessarily best for all. But it might be well suited to your needs if you're at least a little risk-averse; you expect to remain invested in the fund for at least a few years; and you would welcome being instantly diversified, with your dollars spread across several hundred well-valued stocks. The Vanguard Value ETF also pays a dividend, and its recent yield of 2.2% is nearly a whole percentage point above the recent 1.3% of the S&P 500. If you're seeking income from your investments, you'll collect $22 from every $1,000 you have invested in the ETF, and that amount is likely to increase over time. Whether you invest in this ETF or in other promising ETFs or promising stocks, be sure you're saving and investing for retirement. Before you buy stock in Vanguard Index Funds - Vanguard Value ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Index Funds - Vanguard Value ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $524,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $622,041!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 153% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 14, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Selena Maranjian has positions in AbbVie, Berkshire Hathaway, Broadcom, Procter & Gamble, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has positions in and recommends AbbVie, Berkshire Hathaway, Home Depot, JPMorgan Chase, Vanguard Index Funds-Vanguard Growth ETF, Vanguard Index Funds-Vanguard Value ETF, and Walmart. The Motley Fool recommends Broadcom, Johnson & Johnson, and UnitedHealth Group. The Motley Fool has a disclosure policy. The Best Value ETF to Invest $500 in Right Now was originally published by The Motley Fool
Globe and Mail
20-04-2025
- Business
- Globe and Mail
The Best Value ETF to Invest $500 in Right Now
Let's say you have $500 to invest and you're wondering where to park it. That's a great position to be in right now since the overall stock market has slumped, turning many solid stocks into bargain stocks. I suggest you give some thought to the Vanguard Value ETF (NYSEMKT: VTV). Here's an introduction to it, along with some considerations. Meet the Vanguard Value ETF As the name says, it's an exchange-traded fund (ETF) -- a fund that trades like a stock. Vanguard is known for low fees, so it shouldn't surprise anyone that the ETF's low expense ratio of 0.04% means you'll pay just $4 per year for each $10,000 you have invested in the fund. The Vanguard Value ETF is an index fund, tracking the CRSP US Large Cap Value Index, which itself is focused on holding stocks of large and mid-size companies that seem undervalued. Value investing -- seeking undervalued companies that offer a margin of safety -- is a popular strategy. It tends to favor slower-growing and steadier companies over fast-growing ones that can often be overvalued. Here are the ETF's recent top holdings: Stock Weight in ETF Berkshire Hathaway 3.45% JPMorgan Chase 3.30% ExxonMobil 2.17% Broadcom 2.06% UnitedHealth Group 1.93% Walmart 1.93% Procter & Gamble 1.81% Johnson & Johnson 1.76% Home Depot 1.74% AbbVie 1.63% Source: as of Feb. 28. There were recently 340 stocks in the fund, with a median market capitalization of $142 billion. They had average annual earnings growth over the past five years of 10% and a recent price-to-earnings ratio (P/E) of 20.2. In contrast, the also well-regarded Vanguard Growth ETF (NYSEMKT: VUG) recently had an average annual earnings increase for its holdings of 27.2% and a P/E of 27.2. The Vanguard Value ETF also had an attractive turnover rate of 8.8% as of the end of 2024, meaning that all the buying and selling in the fund represented just 8.8% of its total fund value. The lower the turnover rate, the more the fund is buying and holding. Fully 22.4% of the ETF's assets were in financial companies, 15.6% in healthcare stocks, 15.1% in industrials, and 8.9% each in consumer discretionary and consumer staples companies. Why the Vanguard Value ETF? So, why should you consider investing in the Vanguard Value ETF? Well, for one thing, it's simply a solid ETF, with low fees. But if you, like many people, see a recession looming, you might want to favor value-focused investing. (A recession isn't guaranteed to be around the corner, by the way.) Growth stocks are often somewhat or very overvalued, because their gains attract lots of investors, and they can have further to fall in a market pullback. They're epitomized by the " Magnificent Seven" stocks -- none of which were recently held in the Vanguard Value ETF, though they can be, depending on their valuations. Value stocks, on the other hand, tend to be undervalued or perhaps at most fairly valued, and they can be more resilient in market pullbacks. Is the Vanguard Value ETF right for you? This ETF -- or any ETF -- isn't necessarily best for all. But it might be well suited to your needs if you're at least a little risk-averse; you expect to remain invested in the fund for at least a few years; and you would welcome being instantly diversified, with your dollars spread across several hundred well-valued stocks. The Vanguard Value ETF also pays a dividend, and its recent yield of 2.2% is nearly a whole percentage point above the recent 1.3% of the S&P 500. If you're seeking income from your investments, you'll collect $22 from every $1,000 you have invested in the ETF, and that amount is likely to increase over time. Whether you invest in this ETF or in other promising ETFs or promising stocks, be sure you're saving and investing for retirement. Should you invest $1,000 in Vanguard Index Funds - Vanguard Value ETF right now? Before you buy stock in Vanguard Index Funds - Vanguard Value ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Index Funds - Vanguard Value ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $524,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $622,041!* Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to153%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of April 14, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Selena Maranjian has positions in AbbVie, Berkshire Hathaway, Broadcom, Procter & Gamble, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has positions in and recommends AbbVie, Berkshire Hathaway, Home Depot, JPMorgan Chase, Vanguard Index Funds-Vanguard Growth ETF, Vanguard Index Funds-Vanguard Value ETF, and Walmart. The Motley Fool recommends Broadcom, Johnson & Johnson, and UnitedHealth Group. The Motley Fool has a disclosure policy.
Globe and Mail
08-04-2025
- Business
- Globe and Mail
Is the Vanguard Value ETF the Best Ultra-Low-Cost Fund for Generating Passive Income?
Collecting passive income from stocks is a simple and effective way to participate in the market without having the return based solely on stock prices going up. Exchange-traded funds (ETFs) that invest in dividend stocks provide the added benefit of diversification, making them solid options for investors looking to spread out risk across dozens or even hundreds of different names. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » The Vanguard Value ETF (NYSEMKT: VTV) is a massive ETF with $195 billion in net assets. The fund's size allows investment management firm Vanguard to charge a mere 0.04% expense ratio, or just 40 cents for every $1,000 invested. Here's why the Vanguard Value ETF is a good choice for generating passive income from industry-leading companies. No "Magnificent Seven" exposure The key difference between the Vanguard Value ETF and a fund that tracks a major index, like the Vanguard S&P 500 ETF (NYSEMKT: VOO), is that the Vanguard Value ETF does not contain any "Magnificent Seven" companies. The "Magnificent Seven" are seven major tech-focused companies -- Apple, Nvidia, Microsoft, Amazon, Alphabet, Meta Platforms, and Tesla. Combined, these companies make up 31.2% of the Vanguard S&P 500 ETF. But all seven stocks are down big in 2025 and are underperforming the S&P 500. VTV data by YCharts With the exception of Broadcom, the largest holdings in the Vanguard Value ETF aren't from tech-focused sectors. Rather, they are financial leaders like Berkshire Hathaway and JPMorgan Chase, energy giants like ExxonMobil, Healthcare behemoths like UnitedHealth Group, Johnson & Johnson, and AbbVie, consumer staples companies like Walmart and Procter & Gamble, and consumer discretionary companies like Home Depot. Vanguard Value ETF Vanguard S&P 500 ETF Company Weighting Company Weighting Berkshire Hathaway 4.2% Apple 7.2% JPMorgan Chase 3.3% Nvidia 6.1% ExxonMobil 2.2% Microsoft 5.9% Broadcom 2.1% Amazon 3.9% UnitedHealth Group 1.9% Alphabet 3.6% Walmart 1.9% Meta Platforms 2.9% Procter & Gamble 1.8% Berkshire Hathaway 1.9% Johnson & Johnson 1.8% Broadcom 1.6% Home Depot 1.7% Tesla 1.6% AbbVie 1.6% JPMorgan Chase 1.5% Data source: Vanguard. Combined, the top 10 holdings in the Vanguard Value ETF make up 22.5% of the fund compared to 36.2% for the top 10 holdings in the Vanguard S&P 500 ETF. A quality yield at a good value Compared to the S&P 500, the Vanguard Value ETF has less exposure to technology and consumer discretionary but outsized exposure to financials, healthcare, industrials, consumer staples, energy, utilities, and real estate. Many companies in these sectors pay dividends and are valued more for their current earnings than their potential growth. During times of uncertainty and stock market sell-offs, investors may gravitate toward proven companies and pay less for companies that need to grow into their valuations. The Vanguard Value ETF is chock-full of companies that can still produce strong earnings even during a downturn and support their growing dividend payments. The Vanguard Value ETF sports a 2.2% yield and a mere 18.8 price-to-earnings (P/E) ratio compared to a 1.2% yield and pricier 23.8 P/E ratio for the Vanguard S&P 500 ETF. A plug-and-play option for value investors There are plenty of ETFs and individual stocks that yield considerably more than the Vanguard Value ETF. But the fund is arguably one of the best buys for folks looking to invest in quality dividend-paying companies rather than get the most yield. It's important to remember that yield is only as reliable as the company paying it. A stock may have a high yield on paper, but the yield isn't reliable if the underlying business isn't growing or has a poor balance sheet. In contrast, top holdings in the Vanguard Value ETF have multidecade streaks of increasing their payouts year after year. Add it all up, and the Vanguard Value ETF is a great choice for folks looking for diversification and a steady source of passive income regardless of stock prices. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $244,570!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $35,715!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $461,558!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon. *Stock Advisor returns as of April 5, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of Motley Fool Money. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Alphabet, Amazon, Apple, Berkshire Hathaway, Home Depot, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Tesla, Vanguard Index Funds-Vanguard Value ETF, Vanguard S&P 500 ETF, and Walmart. The Motley Fool recommends Broadcom, Johnson & Johnson, and UnitedHealth Group and 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.
