This ETF tracks the performance of CRSP US Large Cap Value Index and primarily consists of value stocks.
VTV can help tilt towards value if you are worried about your portfolio being overweight with speculative growth names (if you already own the mega tech growth names, you may buy VTV to complement them). If you are an income investor getting closer to retirement you may be interested in the fact that the yield is higher than VOO (Vanguard S&P 500 ETF). I could see this fund helping a bit during times of volatility. Fees are the lowest in the category and this ETF has a Gold rating on Morningstar.
The financial and healthcare sectors are overweight and tech is underweight, so VTV can help you steer your portfolio that way. Unfortunately, value has been underperforming for the past few years compared to VOO or VTI.
But if you look at the underlying companies in the portfolio they are all excellent holdings to hold for the long run, especially when you can buy them for so cheap this year. I am seeing a mere 45 percent overlap by weight between VTV and VOO, so it certainly makes sense to hold them both. About 90 percent of the stocks in VTV are also in VOO. The top 5 holdings have twice the percentage by weight share in VTV compared to VOO. If you believe 'value' in general and financial and healthcare sectors would perform better than they have, this is a worthy addition for you.
References and further reading —
Disclaimer — Not to be construed as financial advice. I assume no liability for losses incurred as a part of your investing process. I would recommend that you seek advice from an actual professional advisor before investing. I do not work in finance. I am just an enthusiast with an interest in money management and all my opinions are for informational purposes only.
