Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Vanguard Value ETF (VTV), a passively managed exchange traded fund launched on January 26, 2004.
The fund is sponsored by Vanguard. It has amassed assets over $164.48 billion, making it the largest ETF attempting to match the Large Cap Value segment of the US equity market.
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.
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. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 1.96%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector -- about 23.4% of the portfolio. Healthcare and Industrials round out the top three.
Looking at individual holdings, Jpmorgan Chase & Co (JPM) accounts for about 3.55% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Exxon Mobil Corp (XOM).
The top 10 holdings account for about 16.33% 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 added about 4.5% so far this year and was up about 15.67% in the last one year (as of 01/30/2026). In the past 52-week period, it has traded between $153.67 and $199.59.
The ETF has a beta of 0.79 and standard deviation of 12.33% for the trailing three-year period, making it a medium risk choice in the space. With about 315 holdings, it effectively diversifies company-specific risk.
Alternatives
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 outstanding 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 Vanguard High Dividend Yield ETF (VYM) and the Schwab U.S. Dividend Equity ETF (SCHD) track a similar index. While Vanguard High Dividend Yield ETF has $71.72 billion in assets, Schwab U.S. Dividend Equity ETF has $77.31 billion. VYM has an expense ratio of 0.06% and SCHD charges 0.06%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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 ReportsThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
