The post-Liberation Day swoon experienced by growth stocks has been erased and then some. As of July 17, the S&P 500 Growth Index is higher by 10. 68% year-to-date and is residing at a 52-week high.
Conversely, value stocks haven’t been as exciting, though the S&P 500 Value Index is higher by 4% this year. That trails the growth gauge and the S&P 500 itself, but the case for value stocks isn’t dead. Positives linger, including expanded shareholder rewards in the financial services sector, a group that’s often featured prominently in value-based index and exchange traded funds.
The case value also includes diversification. Given the recent resurgence of the magnificent seven and related fare, clients and investors are likely tempted to be over-allocated to growth/momentum while glossing over the diversification perks of value – benefits that shone through amid tariff calamity earlier this year.
How advisors and investors approach value matters and the importance of that evaluation process calls attention to viable value winners, such as the Vanguard Value ETF (NYSE: VTV). Let’s examine some details that shed light on why VTV is one of the top ETFs in the value category.
VTV Particulars Are Impressive
For those into superficial ETF metrics, VTV is home to $138. 38 billion in assets under management, making it the largest ETF in the value camp. A feather in the fund’s cap to be sure, but there’s more to the story. The Vanguard ETF tracks the CRSP US Large Cap Value Index, which predictably emphasizes traits such as slow earnings growth, appealing valuations and elevated dividend yields.
Investors shouldn’t be alarmed by the dividend factor’s intersection with VTV. The fund yields just 2. 18%, implying room for growth, and it’s not heavily allocated to traditional high-dividend sectors, such as real estate and utilities. However, VTV is heavily weighted to traditional value sectors as financial services, industrial and healthcare stocks combine for about 53% of the portfolio.
That gives the ETF adequate leverage to the aforementioned expansion of shareholder rewards, including dividend growth, in the financial services sector while positioning investors to benefit from a potential, long-awaited rebound in blue-chip healthcare stocks. Translation: VTV, like many Vanguard ETFs, is diverse.
“The fund benefits from diversification. It held around 330 stocks and allocated 21% of its assets to its top 10 holdings, compared with peers’ 30%, as of May 2025,” notes Morningstar analyst Brendan McCann. “Financial services occupied 25% of the portfolio’s assets, the largest of any sector, which was in line with the category average of 21%. ”
Yes, VTV Is Cheap, Too
As advisors and clients know, Vanguard issuers some of the least expensive ETFs on the market. Confirming there’s (expense ratio) value in value, VTV lives up to that heritage. Its annual fee of 0. 04%, or $4 on a $10,000 position, is one of the lowest in the category.
That’s good news for patient investors and patience is exactly the virtue needed in value investing. Warren Buffett would agree.
“The ETF outperformed its average large-value peer by 1. 51 percentage points over the 10 years through June 2025. This was due, in large part, to its cost advantage,” adds McCann. “In addition, its volatility was lower, and risk-adjusted returns were higher than those of peers. That held true in the short term as well: The fund touted higher risk-adjusted returns over the trailing three- and five-year periods. The fund’s low fee, coupled with lower turnover, provides an advantage over peers. ”
