Vanguard Value Index Fund ETF Shares (VTV)

ETF Vanguard Value Index Fund ETF Shares (VTV) Overview:

Profile:

VTV is an ETF that tracks the performance of the CRSP US Large Cap Value Index. It invests primarily in large-cap value stocks listed on the U.S. exchange. The fund seeks to provide long-term capital appreciation and income by investing in a diversified portfolio of value stocks.

Objective:

The primary goal of VTV is to track the performance of the CRSP US Large Cap Value Index and provide investors with exposure to large-cap value stocks.

Issuer:

Vanguard Group:

• Reputation and Reliability: Vanguard is a highly reputable and reliable asset management firm with a long history of providing low-cost investment products. It is the second-largest asset manager in the world, with over $8 trillion in assets under management.
• Management: Vanguard employs a team of experienced portfolio managers and analysts who are responsible for managing the VTV portfolio.

Market Share:

As of October 27, 2023, VTV is the largest value stock ETF in the market, with over $130 billion in assets under management. It holds approximately 9.4% of the large-cap value ETF market share.

Total Net Assets:

$130.41 billion (as of October 27, 2023)

Moat:

• Low Fees: VTV has a low expense ratio of 0.04%, making it one of the most cost-efficient value stock ETFs available.
• Diversification: The fund invests in a broad range of value stocks across different sectors, reducing single-stock risk.
• Track Record: VTV has consistently outperformed its benchmark index over the long term.

Financial Performance:

• Historical Returns: Since its inception in 2004, VTV has generated an annualized return of 9.78%.
• Benchmark Comparison: VTV has outperformed the CRSP US Large Cap Value Index by an average of 0.35% per year since inception.

Growth Trajectory:

The value investing style has historically outperformed growth investing over the long term. As the market continues to cycle, value stocks are expected to continue to perform well in the future.

Liquidity:

• Average Trading Volume: VTV has a high average daily trading volume of over 30 million shares, making it a highly liquid ETF.
• Bid-Ask Spread: The bid-ask spread is typically very tight, indicating low transaction costs.

Market Dynamics:

• Economic Indicators: Economic growth and interest rate policies can significantly impact the performance of value stocks.
• Sector Growth Prospects: The performance of VTV can also be affected by the performance of specific sectors within the value universe.

Competitors:

• iShares S&P 500 Value Index ETF (IVE) with 2.55% market share
• Schwab US Large-Cap Value ETF (SCHV) with 1.61% market share

Expense Ratio:

0.04%

Investment Approach and Strategy:

• Strategy: VTV employs a passive indexing strategy, aiming to track the performance of the CRSP US Large Cap Value Index.
• Composition: The fund primarily invests in large-cap value stocks from various sectors, including financials, healthcare, and industrials.

Key Points:

• Low-cost and tax-efficient way to gain exposure to large-cap value stocks.
• Broad diversification across sectors, reducing single-stock risk.
• Long-term track record of outperforming its benchmark index.

Risks:

• Market Risk: The value of VTV can fluctuate depending on overall market conditions and the performance of the underlying value stocks.
• Style Risk: Value investing may underperform growth investing during certain periods.
• Volatility: Value stocks tend to be more volatile than growth stocks.

Who Should Consider Investing?:

• Investors looking for long-term capital appreciation and income.
• Investors who believe value stocks will outperform growth stocks over the long term.
• Investors seeking a low-cost and diversified exposure to large-cap value stocks.

Fundamental Rating Based on AI:

8.5/10

VTV receives a high AI-based rating due to its strong financial performance, significant market share, low fees, and experienced management team. However, investors should be aware of the inherent risks associated with investing in value stocks.

Resources and Disclaimers:

• Vanguard Website: https://investor.vanguard.com/etf/profile/VTV
• Morningstar: https://www.morningstar.com/etfs/arcx/vtv/quote

This information is for educational purposes only and should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.