Meet the Low-Cost ETF That Solves the Vanguard Morningstar Value ETF's Biggest Flaw. Here's Why It's a Magnificent Buy in September.
The Vanguard Russell 1000 Value ETF is better equipped to evolve in lock step with the modern market than the rigid Vanguard Morningstar Value ETF.
Overview
With $188 billion in net assets, the Vanguard Morningstar Value ETF (NYSEMKT: VTV) is by far the largest value-oriented exchange-traded fund (ETF) in the world. And for good reason, as the ETF charges the same 0.03% expense ratio as the world's largest ETF by net assets -- the Vanguard S&P 500 ETF (NYSEMKT: VOO). Low fees provide cost-effective exposure to leading value stocks
The ETF is a good fit for investors who want to target companies priced more for what they are earning today than for what they could earn in the future. This is why the ETF has significantly higher weights in sectors like financials, healthcare, industrials, and consumer staples than the Vanguard S&P 500 ETF.
Details
The results have been solid too, as the Vanguard Value ETF has produced a total return (dividends plus capital gains) of 67.9% over the past three years -- and that's without key artificial intelligence (AI) stocks like Nvidia. The Vanguard Morningstar Value ETF is effective because of its simplicity.
Source
Originally published at www.fool.com.