Prediction: Nvidia Will Join the Vanguard Russell 1000 Value ETF Before the End of the Year. Here's Why the ETF Is an Excellent Buy Now.
Nvidia is now consistently profitable and sports a reasonable valuation, making it a blend of growth and value.
Overview
As of July 31, the Vanguard Russell 1000 Growth ETF (NASDAQ: VONG) has a whopping 14.6% weighting in Nvidia (NASDAQ: NVDA) -- far ahead of the 7.6% weighing in the Vanguard S&P 500 ETF (NYSEMKT: VOO). The Vanguard Russell 1000 Growth ETF is based on the Russell 1000 Growth Index, which uses unique methodologies that overweight stocks it deems pure-play growth names (like Nvidia). But that classification may not last.
Here's the surprising reason Nvidia is evolving into a dividend growth stock, which could land it a spot in the Vanguard Russell 1000 Value ETF (NASDAQ: VONV), and why the ETF is one of the best buys for value investors.
Image source: Nvidia.
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Originally published at www.fool.com.