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ETF Specialist

A Strong Large-Value ETF

This is one of the best choices for exposure to U.S. large-value stocks.

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Value stocks have disappointed over the past decade, significantly lagging their growth counterparts and testing even the most patient investors. Such bouts of underperformance are a real risk for any strategy that deviates from the market, and those who are not comfortable with it should stick with broad market index funds. However, value investing is still a reasonable strategy that should reward investors over the long term.   

While it’s difficult to predict when large-value stocks will do well relative to the broader market,  Vanguard Value ETF (VTV) is one of the best options for exposure to this area of the market. It offers a diversified, market-cap-weighted portfolio, which promotes low turnover and is representative of its actively managed peers' opportunity set. The fund's considerable cost advantage further supports a Morningstar Analyst Rating of Silver.

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Alex Bryan has a position in the following securities mentioned above: VLUE. Find out about Morningstar’s editorial policies.