Vanguard Value Funds: A Comprehensive Guide

Vanguard Value Funds are a popular choice for investors seeking long-term growth through value investing. They offer a range of funds that cater to different risk tolerance and investment goals.

Vanguard's value funds are known for their low costs and high returns. The Vanguard Value Index Fund, for example, has consistently outperformed its benchmark over the past decade.

Investors can choose from a variety of Vanguard value funds, each with its own unique characteristics and investment strategies.

The Vanguard Value Index Adm fund has an expense ratio of 0.05%, which is 95% lower than its category average.

This low expense ratio is a significant advantage, as high annual expense ratios can reduce your rate of return. High portfolio turnover can also lead to higher expenses and lower aftertax returns, but Vanguard Value Index Adm has a portfolio turnover rate of 10%, which is much lower than the average of 50% for the Large Value category.

In January 2025, the fund returned 4.4%, earning it a grade of C, as the Large Value category had an average return of 4.2%.

The performance of VVIAX in the future will depend on its Process Pillar, which assesses the investment process and portfolio construction.

High-quality management teams, like the one at VVIAX, tend to deliver superior performance relative to their benchmarks and/or peers.

We evaluate the VVIAX management team's experience and ability through the People Pillar.

The Parent Pillar rates VVIAX's parent organization's priorities and whether they're in line with investors' interests.

Vanguard Value Index Adm has a very low expense ratio of 0.05%, which is 95% lower than its category average.

This low expense ratio is a significant advantage, as high annual expense ratios can reduce your rate of return and make it difficult to overcome.

The average portfolio turnover for Vanguard Value Index Adm is 10%, which is a relatively low rate compared to the Large Value category average of 50%.

Low portfolio turnover can also help minimize expenses and maximize returns.

In January 2025, Vanguard Value Index Adm returned 4.4%, which earned it a grade of C compared to the Large Value category average return of 4.2%.

The grade of C indicates that Vanguard Value Index Adm's return was in the middle to lower end of the category rankings.

The Vanguard Value Index Adm fund has a current portfolio date of January 31, 2025. The fund's top 10 holdings constitute 21.7% of its assets.

Here is a breakdown of the fund's top 10 holdings:

The Vanguard Small-Cap Value Index Fund Admiral Shares (VSIAX) is a great addition to a core/satellite value investing strategy.

It captures the small-cap range of stocks, offering even greater upside potential, with over $45.2 billion in assets spread across 888 holdings as of October 14, 2022.

Its top holdings are Quanta Services, Molina Healthcare Inc., Atmos Energy, and IDEX Corp.

The fund's objective is to mirror the Center for Research in Security Prices (CRSP) Small-Cap Value Index.

As of October 14, 2022, it had a 10-year return of 9.46% and a five-year return of 4.42%.

The fund's expense ratio of 0.07% is considered extremely low.

You can invest in VSIAX with the same $3,000 minimum deposit as the other funds mentioned.

It's also available as an ETF, trading under the ticker VBR.

The Vanguard Value Index Adm fund, also known as VVIAX, has a current portfolio date of January 31, 2025.

The fund's top 10 holdings constitute 21.7% of the fund's assets, which is a relatively small percentage considering the overall portfolio.

The fund's top 10 holdings are dominated by the financial services sector, with the first two holdings being in this sector and accounting for 6.5 billion and 6.1 billion in market value, respectively.

Here are the top 10 holdings of the VVIAX fund:

The Vanguard Value Index Fund Admiral Shares has a diversified portfolio of 341 securities, with the top 10 holdings constituting 21.8% of the fund's assets.

This diversification is a key benefit of the fund, as it helps to reduce risk and increase potential returns. The fund is not considered to have an ESG focus, but it does meet the SEC requirement of being classified as a diversified fund.

The fund's portfolio allocation is also worth noting, with 99.0% of its assets invested in domestic stock and 0.8% in foreign stock. The remaining 0.2% is allocated to cash.

Here's a breakdown of the fund's portfolio allocation:

The Vanguard Value Index Fund Admiral Shares has more than $143 billion in assets as of October 2022, making it one of the largest and most successful value funds in the market.

The fund is considered a core holding and employs a long-term buy-and-hold approach, investing in stocks that make up the CRSP U.S. Large-Cap Value Index.

The Vanguard Small-Cap Value Index Fund Admiral Shares has more than $45.2 billion in assets as of October 2022, spread across 888 holdings consisting of small-cap stocks.

This fund requires the same $3,000 minimum deposit as the Vanguard Value Index Fund Admiral Shares.

The Vanguard Value Index Fund Admiral Shares has a low expense ratio of 0.05% as of October 2022, which is among the lowest in its category.

Here's a comparison of the assets under management for the Vanguard Value Index Fund Admiral Shares and the Vanguard Small-Cap Value Index Fund Admiral Shares:

The Vanguard Value Index Fund Admiral Shares has a trailing dividend yield of 2.21% as of October 2022, which is above the 1.49% category average.

Let's take a look at how some of the top Vanguard value funds have performed over the past year. The funds in the Large Value category are currently sitting at around 16.5% to 16.6% in terms of one-year performance.

One of the funds, Vanguard Value Index Fund Institutional Shares, has a one-year performance of 16.56%. This is comparable to other funds in the category, such as Schwab Instl Lrg Cap Value Tr Fd-Ret and Fidelity Equity-Income Fund - Class K, which also have one-year performances of 16.58%.

In fact, if we take a closer look at the table below, we can see that these four funds are actually tied for the top spot in terms of one-year performance in the Large Value category.

Vanguard Index Funds - Vanguard Value ETF has consistently reported earnings results for the full year and half year periods. The most recent full year earnings results were reported for the period ended December 31, 2023.

The Vanguard Value ETF has a history of releasing earnings results on a regular basis, with the first reported earnings results for the full year period ending December 31, 2018. These results were announced on March 1, 2019.

The ETF has also reported earnings results for the half year periods, with the most recent results announced on August 25, 2023. This trend of releasing half year earnings results has continued since 2020.

Here is a list of the reported earnings results for the Vanguard Value ETF:

The Vanguard Value ETF has consistently reported earnings results on a regular basis, providing investors with valuable insights into the fund's performance.

The Vanguard Value fund has been given a high rating for its Above Average Process and People ratings.

It constructs a well-diversified portfolio of U.S. value stocks.

The fund uses a market-cap-weighted approach, which means the largest companies in the portfolio have a bigger impact on its performance.

This strategy is a recipe for success over the long run due to its low fees.