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VTV pursues a large-cap value investing approach that tracks the performance of an index that measures the investment return of large-capitalization value stocks.

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Vanguard Offers Value with this Fund

VTV pursues a large-cap value investing approach that tracks the performance of an index that measures the investment return of large-capitalization value stocks.

This weekâ??s ETF Talk features Vanguard Value ETF (VTV), yet another low-expense-ratio Vanguard exchange-traded fund (ETF). VTVâ??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 VTVâ??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 ETFâ??s price has increased by 11.62% during 2014, and its 2.19% yield provides additional income to investors.

VTV_120514

VTVâ??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 fundâ??s assets. This fundâ??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 Vanguardâ??s version increases the appeal of this ETF. If youâ??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 on Eagle Daily Investor about Vanguard’s growth-oriented ETF, VUG. I also invite you to comment in the space provided below my Eagle Daily Investor commentary.

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Written By

Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns 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 Hulbertâ??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

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archive

Vanguard Offers Value with this 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 on Eagle Daily Investor about Vanguard’s growth-oriented ETF, VUG. I also invite you to comment in the space provided below my Eagle Daily Investor commentary.

Newsletter Signup.

Sign up to the Human Events newsletter

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FOREIGN AFFAIRS

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