Vanguard Value ETF Draws Focus With $179 Billion as Investors Rotate Out of Big Tech
Updated
Updated · The Motley Fool · Jun 29
Vanguard Value ETF Draws Focus With $179 Billion as Investors Rotate Out of Big Tech
3 articles · Updated · The Motley Fool · Jun 29
Summary
$179 billion Vanguard Value ETF is emerging as a low-cost way to play 2026’s shift away from megacap tech, with a 0.03% expense ratio and more than 300 large-cap value holdings.
The appeal tracks the market’s leadership change: the Magnificent Seven have lagged this year, while money has moved into financials, industrials, energy and other dividend-paying value sectors.
VTV is built for that rotation, with about 21% in financials, 16% in industrials, 13% in healthcare and just 13% in technology—far below the broader market’s tech concentration.
Its portfolio also looks cheaper and more income-oriented than the S&P 500, trading at roughly 22 times earnings versus 25 times and yielding about 1.9%.
The trade-off is timing: if megacap tech rebounds or the economy and commodity prices weaken, a value-heavy fund like VTV could lag the broader index.