Vanguard Value ETF (VTV): Complete Beginner's Guide
Last updated: March 2026 • Vanguard • US Large-Cap Value
Expense Ratio
0.04%
AUM
$130.0B
Dividend Yield
2.50%
Inception
2004
Beginner Score
9/10
What is Vanguard Value ETF?
VTV tracks the CRSP US Large Cap Value Index, offering broad exposure to large U.S. companies that are considered undervalued relative to their fundamentals. It is a core holding for investors who believe value stocks will outperform over the long run. The fund spans established companies across financials, healthcare, and industrials at a rock-bottom cost.
VTV is managed by Vanguard and has been available since 2004. With $130.0B in assets under management, it's one of the largest and most liquid ETFs available. The fund charges an expense ratio of 0.04%, which means for every $10,000 you invest, you pay approximately $4 per year in management fees.
VTV at a Glance — Key Metrics
| Expense Ratio | 0.04% |
| Total Holdings | 340 |
| P/E Ratio | 16.8 |
| Beta | 0.88 |
| Dividend Yield | 2.50% |
| AUM | $130.0B |
| Inception Year | 2004 |
| Issuer | Vanguard |
Top 10 Holdings in VTV
VTV holds 340 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Berkshire Hathaway | BRK.B | 3.80% |
| 2 | JPMorgan Chase | JPM | 3.20% |
| 3 | UnitedHealth Group | UNH | 3.10% |
| 4 | ExxonMobil | XOM | 2.80% |
| 5 | Johnson & Johnson | JNJ | 2.40% |
| 6 | Procter & Gamble | PG | 2.30% |
| 7 | Broadcom | AVGO | 2.20% |
| 8 | Home Depot | HD | 2.00% |
| 9 | AbbVie | ABBV | 1.90% |
| 10 | Walmart | WMT | 1.80% |
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VTV Performance History
Here's how VTV has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
3.00%
1 Year
12.00%
3 Year
9.00%
5 Year
10.00%
10 Year
10.00%
Beginner Suitability Score: 9/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
VTV scores 9/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 340 holdings, and has been available since 2004, giving it a proven track record.
How to Buy VTV — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "VTV" — Use the search bar in your brokerage platform to find Vanguard Value ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into VTV
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With VTV's expense ratio of 0.04%, a $10,000 investment would lose approximately $344 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
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Pros and Cons of VTV
Pros
- ✓Extremely low expense ratio at just 0.04% annually
- ✓Massive AUM ensures tight bid-ask spreads and excellent liquidity
- ✓Broad diversification across over 300 value-oriented large-cap stocks
- ✓Historically strong performance during market recoveries and economic expansions
Cons
- ✗Value stocks can underperform growth stocks during tech-driven bull markets
- ✗Lower exposure to high-growth technology names may limit upside in certain periods
- ✗Heavier weighting toward cyclical sectors increases sensitivity to economic downturns
VTV vs Similar ETFs
See how VTV stacks up against similar funds:
Frequently Asked Questions
Is VTV a good ETF for beginners?▾
VTV has a Beginner Suitability Score of 9/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of VTV?▾
VTV has an expense ratio of 0.04%. This means for every $10,000 you invest, you pay approximately $4 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in VTV?▾
You can invest in VTV with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does VTV pay dividends?▾
Yes, VTV pays dividends with a current yield of approximately 2.50%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in VTV?▾
The top holdings in VTV include Berkshire Hathaway (3.80%), JPMorgan Chase (3.20%), UnitedHealth Group (3.10%), and more. The fund holds 340 total positions, providing broad diversification across many companies.