When it comes to total assets between the Vanguard Growth Index Fund ETF Shares (VUG) and the Vanguard Value Index Fund ETF Shares (VTV), it’s value that shines in more ways than one.
The re-invigoration of value as an investing factor has been well-documented. VTV’s strength in the short-term is further substantiating that fact.
For growth seekers, VUG tracks the performance of a benchmark index that measures the investment return of the CRSP US Large Cap Growth Index. The fund employs an indexing investment approach designed to track the performance of a broadly diversified index predominantly made up of growth stocks of large U.S. companies.
The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. VUG’s expense ratio comes in at a low 0.04%.
See also: Top 67 Commission-Free ETFs on Vanguard
For value seekers, VTV seeks to track the performance of a benchmark index that measures the investment return of large-capitalization value stocks. The fund employs an indexing investment approach designed to track the performance of the CRSP US Large Cap Value Index, a broadly diversified index predominantly made up of value stocks of large U.S. companies.
Like VUG, the advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. The ETF also offers a rock-bottom 0.04% expense ratio.
And the Winner in YTD Gains Is…
VTV’s 12.40% YTD gain is up on VUG by about 5%, but with earnings season around the corner, it will be interesting to see whether the value factor can maintain its lead. With VUG’s heavy tech hitters like Amazon and Apple having blockbuster earnings reports, the tide could shift in growth’s favor.
After all, when looking at the long-term performances of both funds, VUG wins handily. VUG is up 62% the past 12 months, while VTV has seen a 37% gain.
Stretch out the time frame further, and the gap rises even more. VUG is up 91% the past three years compared to VTV’s 28% gain.
For more news and information, visit the Smart Beta Channel.