Categories: Exchange Traded Funds (ETFs)U.S. Investing

Vanguard Offers Value Exchange-Traded Fund

This week’s ETF Talk features Vanguard Value ETF (VTV), yet another low-expense-ratio Vanguard exchange-traded fund (ETF). VTV’s $16.3 billion under management shows the fund is almost as popular as its growth-focused sibling, Vanguard Growth ETF (VUG), which has $16.4 billion under management. But VTV’s low 0.09% expense ratio, the same as VUG, is 92% below the average for its category of investments.

VTV, unlike VUG and its large-cap growth fund strategy, pursues a large-cap value investing approach that tracks the performance of an index that measures the investment return of large-capitalization value stocks. A value stock is one that investors believe is undervalued by the market.

Vanguard Value ETF’s price has increased by 11.62% during 2014, and its 2.19% yield provides additional income to investors.

VTV’s largest sector holdings are financial services, 21.84%; healthcare, 15.31%; and industrials, technology and energy, each with slightly more than 11% of the fund’s assets. This fund’s top 10 holdings make up 26.73% of its total assets. The list of its top individual holdings includes Exxon Mobil Corporation (XOM), 3.95%; Microsoft Corporation (MSFT), 3.39%; Johnson & Johnson (JNJ), 2.96%; Wells Fargo & Company (WFC), 2.67%; and General Electric Company, 2.53%.

Nearly any ETF provider is likely to offer a value-oriented fund, but the low expense ratio of Vanguard’s version increases the appeal of this ETF. If you’re interested in value investing, look into Vanguard Value ETF (VTV).

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful ETF Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an e-mail. You just may see your question answered in a future ETF Talk.

In case you missed it, I encourage you to read my e-letter column from last week about Vanguard’s growth-oriented ETF, VUG. I also invite you to comment in the space provided below.

Doug Fabian

Doug Fabian is the Editor of Weekly ETF Report, a free weekly e-newsletter, and the newsletter Successful ETF Investing. He’s also the host of the syndicated radio show, “Doug Fabian’s Wealth Strategies.” Doug also edits the fast-paced trading service ETF Trader’s Edge, for investors who want to take their profits to the next level. Taking over the reins from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert’s Investment Digest. Doug became a member of the “SmartMoney 30” in 1999 — a listing of the most influential individuals in the mutual fund industry. In the feature, SmartMoney magazine exclaims that Doug is the best-known “trend follower” among the $56 billion (and growing) group of financial advisors. In 2001, Doug wrote “Maverick Investing,” published by McGraw-Hill. He also regularly appears at seminars around the country, stands out on the pages of the largest newspapers (The Wall Street Journal, The Los Angeles Times, and The New York Times), and speaks on national television (CNBC, Fox News, and Bloomberg Forum). For more than 35 years, Successful ETF Investing (formerly the Telephone Switch Newsletter and Successful Investing) has produced double-digit percentage annual gains. Doug has become known for his expert knowledge and timely use of innovative tools, such as exchange-traded funds, bear funds, and enhanced-index funds to profit in any market climate. For more information about Doug’s services, go to http://www.fabian.com/