The Vanguard Value ETF (VTV Quick QuoteVTV - Free Report) was launched on January 26, 2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.

The fund is sponsored by Vanguard. It has amassed assets over $147.01 billion, making it the largest ETF attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap Value

Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.

Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.04%, making it the least expensive products in the space.

It has a 12-month trailing dividend yield of 2.08%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector -- about 25.1% of the portfolio. Healthcare and Industrials round out the top three.

Looking at individual holdings, Jpmorgan Chase & Co (JPM) accounts for about 3.61% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Exxon Mobil Corp (XOM).

The top 10 holdings account for about 14.73% of total assets under management.

Performance and Risk

VTV seeks to match the performance of the CRSP U.S. Large Cap Value Index before fees and expenses. The CRSP U.S. Large Cap Value Index measures the investment return of large-capitalization value stocks.

The ETF return is roughly 10.84% so far this year and was up about 9.03% in the last one year (as of 09/22/2025). In the past 52-week period, it has traded between $153.67 and $186.06.

The ETF has a beta of 0.82 and standard deviation of 13.5% for the trailing three-year period, making it a medium risk choice in the space. With about 325 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VTV is an excellent option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Vanguard High Dividend Yield ETF (VYM) and the Schwab U.S. Dividend Equity ETF (SCHD) track a similar index. While Vanguard High Dividend Yield ETF has $65.09 billion in assets, Schwab U.S. Dividend Equity ETF has $71.62 billion. VYM has an expense ratio of 0.06% and SCHD charges 0.06%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.