Vanguard Value ETF

VTV

Market cap $148B

Wall Street warns of an AI equity bubble as mega-cap tech surges, prompting investors to diversify into ETFs for balanced growth.

Amid market uncertainty and overvalued equities, value investing with ETFs offer a safer, long-term path to steady returns.

Market risks are mounting, prompting investors to seek stability and protection through defensive ETFs.

Vanguard Value Index Fund ETF Shares maintains strong returns and momentum, delivering an 11% total return year to date with low risk. VTV's portfolio strength lies in financials, health care, industrials, and consumer defensive sectors, all showing robust earnings and price growth. The fund offers steady price appreciation, a 2%+ dividend yield, and 14 consecutive years of dividend increases, outperforming the S&P 500's average yield.

The Vanguard Value ETF (VTV) 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 article highlights the divide between affluent and paycheck-to-paycheck American consumers, emphasizing that affluent spending drives economic resilience. AI-related stocks are powering market gains, while non-AI tech and value stocks lag, masking underlying disparities in market performance. Over 40% of my dividend growth portfolio is in a single sector, justified by fading headwinds from interest rates and new supply, and improving sector fundamentals.

Most investors are aware a few companies dominate the stock market. But the same goes for the ETF market.

The U.S. stock market has been on a bull run since early 2023, with much of it being propped up by the artificial intelligence (AI) hype and boom. On one hand, this is great for investors who have been along for the ride.

Vanguard Value ETF (VTV 0.43%) is up around 8% so far in 2025. From a historical perspective, that's not a bad showing, given that investors generally expect the S&P 500 index to provide a 10% return, on average, each year.

In 2000, the market was trading near all-time highs and was being driven higher by technology stocks. Until it wasn't, and the stock market crashed back down, with a difference between growth and value stocks on clear display.