Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Vanguard Russell 1000 Value ETF (VONV) is a passively managed exchange traded fund launched on September 22, 2010.
The fund is sponsored by Vanguard. It has amassed assets over $15.39 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies usually 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.
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. Value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value 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 0.06%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.72%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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 20% of the portfolio. Industrials and Information Technology round out the top three.
Looking at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 3.09% of total assets, followed by Jpmorgan Chase & Co (JPM) and Alphabet Inc (GOOGL).
Performance and Risk
VONV seeks to match the performance of the Russell 1000 Value Index before fees and expenses. The Russell 1000 Value Index measures the performance of large-capitalization value stocks in the United States.
The ETF return is roughly 6.07% so far this year and it's up approximately 17.65% in the last one year (as of 02/24/2026). In the past 52-week period, it has traded between $73.19 and $98.87.
The ETF has a beta of 0.86 and standard deviation of 12.99% for the trailing three-year period, making it a medium risk choice in the space. With about 875 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Russell 1000 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, VONV 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 Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $84.64 billion in assets, Vanguard Value ETF has $169.55 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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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Vanguard Russell 1000 Value ETF (VONV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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