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If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Vanguard S&P 500 Value Index Fund ETF Shares (VOOV), a passively managed exchange traded fund launched on September 9, 2010.
The Vanguard S&P 500 Value ETF receives a reiterated buy rating, supported by strong technicals and reasonable valuation. VOOV trades at just under 19x earnings, maintaining a 1.5-point P/E discount to the S&P 500 and a 9.83% long-term earnings growth rate. Sector overweights in Financials, Health Care, and Industrials provide momentum, with recent outperformance and Apple's 7.9% exposure aiding results.
Value stocks have been doing marginally better compared to previous years, but they've still failed to narrow the gap.
The Vanguard S&P 500 Value Index Fund ETF Shares (NYSEARCA:VOOV | VOOV Price Prediction) distributes income four times a year from the dividend-paying half of the S&P 500, and at roughly $218 a share it has quietly compounded into a serviceable income vehicle.
The value-over-growth rotation that strategists had been calling for since the start of the year is finally showing up in fund returns.
The Vanguard S&P 500 Value Index Fund ETF Shares (VOOV) was launched on September 9, 2010, 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 Vanguard S&P 500 Value Index Fund ETF targets large-cap stocks with strong value and weak growth characteristics. Its expense ratio is 0.07%, and the ETF has $6.3 billion in assets. VOOV also holds stocks with weak one-year price returns, and this year, stocks like Apple and Amazon qualified. This feature also sets VOOV up as a fascinating anti-momentum play. VOOV's performance compared to VOOG, its large-cap growth counterpart, depends on the momentum factor's strength normalizing after three strong years.
Launched on September 9, 2010, the Vanguard S&P 500 Value Index Fund ETF Shares (VOOV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.