Vanguard Mega Cap Value ETF

MGV

Market cap $11.1B

The U.S. market has been dominated by tech and growth stocks for the past three years. As parts of the economy show signs of slowing, a rotation from growth to value stocks may be in the cards.

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Vanguard Mega Cap Value ETF (MGV) is a passively managed exchange traded fund launched on December 17, 2007.

Vanguard Mega Cap Value Index Fund ETF is rated Hold due to an unfavorable macro outlook for such a portfolio mix. MGV's sector profile, with 27% in Financials and only 12% in Tech, limits upside versus broad-market or growth ETFs as monetary policy eases. Recent performance shows MGV's returns are not materially superior to other large-cap value ETFs, questioning its near-term utility.

Vanguard's Mega-Cap Value ETF is rated a BUY for its discounted valuation and defensive positioning amid market highs and persistent inflation. MGV trades at a 28% P/E and 42% price-to-book discount to the S&P 500, offering attractive relative value and sector diversification. The ETF's top holdings—JPMorgan, Berkshire Hathaway, Exxon, J&J, and Walmart—provide exposure to financials, healthcare, and consumer staples, with a focus on income and stability.

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Vanguard Mega Cap Value ETF (MGV), a passively managed exchange traded fund launched on December 17, 2007.

Vanguard Mega Cap Value ETF offers low-cost, diversified exposure to U.S. mega-cap value stocks, tracking the CRSP U.S. Mega Cap Value Index. MGV is heavily weighted toward financials, with sector performance influenced by recent and expected Federal Reserve rate cuts, benefiting banks and industrials. While MGV has performed well and carries a low expense ratio, small- and mid-cap value ETFs may outperform during periods of declining interest rates.

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Vanguard Mega Cap Value ETF (MGV), a passively managed exchange traded fund launched on December 17, 2007.

With the stock market sitting near record highs, many investors may be tempted to wait for a pullback before buying any new shares. The problem is that waiting for a better price often backfires.

The S&P 500 has historically averaged a return of around 10% per year -- making it a powerful tool for growing your wealth over time. But its gains have been much bigger lately, with 2023 and 2024 each notching returns of more than 20%.

Investing in exchange-traded funds (ETFs) is a great way for both new and experienced investors to gain market exposure, and Vanguard is one of the best places to begin, given that the investment firm is known as the low-cost leader. A $1,000 investment is a good starting point, although one key to building wealth is to consistently add to your investments over time through a dollar-cost averaging strategy.