VTV, which is the ETF class of a Vanguard mutual fund, saw 2016 inflows of $5.4 billion. The ETF charges just 0.08% per year, or $8 on a $10,000 investment, making it less expensive than 93% of rival funds, according to issuer data.
Energy and financial services sectors, frequently the two largest sector allocations in many value ETFs, combine for nearly 36% of VTV’s lineup.
“For example, according to Morningstar, VTV outperformed the S&P 500 by almost 4 percentage points (23.6% versus 20%) in the year ended Jan. 31, but its average annualized return over the past 10 years was a percentage point lower (7% versus 6%),” according to the Journal.
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