Vanguard Value ETF

VTV

Market cap $171B

Not every exchange-traded fund (ETF) worth owning trades at a premium. Some of the most structurally sound funds sit quietly below the radar, offering low costs, reliable income, or sector exposure that the broader market has yet to reprice fully.

Vanguard stands as the premier provider of exchange-traded funds (ETFs) and mutual funds, delivering low-cost access to virtually any investment objective an investor may have.

Vanguard Value ETF is reiterated as a Sell despite recent outperformance and all-time highs. VTV's rally has been driven by low Technology exposure, strong Value performance, and double-digit gains in top holdings. Forward outlook projects VTV underperforming in Technology-led rallies and delivering a 2026 total return of 7.6%, slightly negative from current levels.

The Vanguard Value ETF is a good baseline for value investors. The Vanguard Mega Cap Value ETF has even more exposure to the largest value stocks.

iShares MSCI USA Value Factor ETF (NYSEARCA:VLUE) targets a specific investor problem: capturing value stock outperformance without the concentration risk of individual stock picking.

Volatility and dispersion are the likely key themes for 2026. The sky-high valuations and increasingly shaky economic/financial fundamentals support that view. At the same time, the market's "put mechanism," which has made the buy-the-dip strategy work since really the GFC, has not disappeared.

When value stocks fall out of favor, investors panic. When they outperform, they feel vindicated.

Warren Buffett, the former CEO of Berkshire Hathaway (NYSE:BRK-B), retired not long ago but his influence endures.

It seems that the tide has finally turned in a direction that favors income investors. The reliance on asset prices, earnings growth and valuation multiples going up has become questionable, to say the least. So, the question now is how to avoid the spillover of these risks (e.g., return unpredictability) into the income investing strategy.

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