Launched on January 26, 2004, the Vanguard Value Index Fund ETF Shares (VTV Quick QuoteVTV - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.

The fund is sponsored by Vanguard. It has amassed assets over $164.62 billion, making it the largest ETF attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap Value

Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

Value stocks have lower than average price-to-earnings and price-to-book ratios. They 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

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.03%, making it the least expensive products in the space.

It has a 12-month trailing dividend yield of 2.02%.

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 22.2% of the portfolio. Healthcare and Industrials round out the top three.

Looking at individual holdings, Jpmorgan Chase & Co (JPM) accounts for about 3.24% of total assets, followed by Berkshire Hathaway Inc (BRK/B) and Exxon Mobil Corp (XOM).

The top 10 holdings account for about 14.89% 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 3.71% so far this year and is up about 15.98% in the last one year (as of 04/03/2026). In the past 52-week period, it has traded between $153.67 and $207.26.

The ETF has a beta of 0.77 and standard deviation of 12.11% for the trailing three-year period, making it a medium risk choice in the space. With about 315 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard Value Index Fund ETF Shares 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 Index Fund ETF Shares (VYM) and the Schwab U.S. Dividend Equity ETF (SCHD) track a similar index. While Vanguard High Dividend Yield Index Fund ETF Shares has $71.91 billion in assets, Schwab U.S. Dividend Equity ETF has $84.32 billion. VYM has an expense ratio of 0.04% and SCHD charges 0.06%.

Bottom-Line

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

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.