VTV

Vanguard Value ETF (VTV) is an exchange-traded fund that seeks to track the performance of a broad index composed of large-cap value-oriented stocks in the United States. The ETF is managed by Vanguard and trades under the ticker VTV on NYSE Arca.

Classified as a U.S. large-cap value equity ETF, VTV aims to reflect, before fees and expenses, the combined price and income return of the stocks included in its benchmark index.

To achieve this objective, the fund employs a passive management strategy, maintaining a portfolio that seeks to replicate the composition and weighting of a large-cap value index comprised of companies whose valuations are deemed attractive by traditional financial measures.

VTV’s benchmark index is constructed using value-oriented criteria such as price-to-earnings, price-to-book ratios, and dividend yields, with securities weighted by float-adjusted market capitalization. 

Diversification and sector exposure

VTV provides broad exposure to the U.S. large-cap value equity market, including companies across key sectors such as:

• Financials.

• Health care.

• Consumer discretionary.

• Industrials.

• Energy.

• Consumer staples.

Structure and costs

Shares of VTV are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).

The fund carries a low and competitive expense ratio, typical of Vanguard’s passively managed ETFs, and does not charge a performance fee. VTV may make periodic income distributions derived from dividends paid by the underlying holdings. The ETF has a single share class and trades exclusively under the ticker VTV.

History and evolution of the ETF

The Vanguard Value ETF was launched in 2004, amid the growth of the ETF industry and rising investor interest in factor-based strategies such as value investing, which seeks to identify companies that markets may have undervalued.

Over time, VTV has become part of allocation strategies focused on the U.S. large-cap value segment, forming part of broader portfolio structures.

Between 2020 and 2024, the ETF reflected variations across economic cycles, changes in interest rates, shifts in monetary policy, and evolving investor preferences between value and growth investing in equity markets, while maintaining high liquidity and broad adoption as a central component in multi-asset allocation strategies.