Jul 3rd, 2009
What’s in my Portfolio: Vanguard Value Exchange Traded Fund
Yes, here’s yet another ETF from Vanguard in my Roth IRA (I have a few of these)–the Vanguard Value Exchange Traded Fund (VTV), not to be confused with the Vanguard Index Funds Small Cap Value Exchange Traded Fund (VBR). This is the ETF equivalent of the Vanguard Value Index Fund (VIVAX).
This ETF tracks the index of large cap “value” stocks–value investing being the kind of investing where someone seeks out stocks that are undervalued and buying them. This fund pays a nice 4.19% yield; unfortunately, it is down considerably for the year (16.82%). It has a rather high turnover for an “index” type fund of 27%, meaning that it’s the kind of ETF best held in a tax sheltered account unless you like paying capital gains taxes. This ETF also makes up a miniscule part of my portfolio–far under one percent–so I am definitely in no danger of being overexposed.
If you are interested in following a value index, this is definitely one to consider. While it’s not performed well recently, its low costs (hey, it’s Vanguard) and yield are likely to help it stay in my portfolio for a long, long time.
Carnival of Everything About Personal Finance – 5th Edition…
Welcome to the 5th Edition of Everything About Personal Finance. In this carnival, just like the previous ones, you’ll see a wide variety of collection of fresh articles about Personal Finance in the topics of career, credit card, debt manageme……
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