Launched on January 26, 2004, the Vanguard Morningstar Value ETF (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 $185.80 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. 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. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 1.92%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector -- about 22.7% of the portfolio. Healthcare and Information Technology round out the top three.

Looking at individual holdings, Micron Technology Inc (MU) accounts for about 3.93% of total assets, followed by Jpmorgan Chase & Co (JPM) and Berkshire Hathaway Inc (BRK/B).

The top 10 holdings account for about 19.8% 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 has added roughly 15.4% so far this year and is up roughly 18.69% in the last one year (as of 10/05/2026). In the past 52-week period, it has traded between $182.87 and $227.51.

The ETF has a beta of 0.75 and standard deviation of 12% for the trailing three-year period, making it a medium risk choice in the space. With about 309 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard Morningstar 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 outstanding 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 iShares Russell 1000 Value ETF (IWD) and the Schwab U.S. Dividend Equity ETF (SCHD) track a similar index. While iShares Russell 1000 Value ETF has $81.49 billion in assets, Schwab U.S. Dividend Equity ETF has $108.48 billion. IWD has an expense ratio of 0.18% and SCHD charges 0.06%.

Bottom-Line

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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.