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Most investors building a diversified portfolio eventually face the same question: how much exposure to value stocks do I actually need? Vanguard S&P 500 Value ETF (NYSEARCA:VOOV) exists to answer that question by isolating the value half of the S&P 500 universe. But whether it delivers meaningful value exposure depends on what you expect from a value tilt in the first place.
What VOOV Actually Does
VOOV tracks large-cap U.S. stocks classified as value within the S&P 500. That means companies trading at lower price multiples relative to fundamentals like book value, earnings, and sales. The fund’s sector composition reflects where value opportunities cluster in today’s market, with financials representing the largest allocation at 20.4%. Traditional economy sectors like healthcare at 15.9% and industrials at 13.7% round out the top positions, creating a portfolio that looks distinctly different from the tech-heavy broader market.
This sector tilt reflects the nature of value investing itself. Information technology gets just 9.7%, a dramatic underweight that shapes how VOOV performs. When tech leads the market higher, VOOV will lag. When investors rotate toward profitability and dividends, VOOV benefits from its traditional economy exposure compared to 33.7% in the standard S&P 500.
Top holdings include JPMorgan Chase (NYSE:JPM) at 3.55% and Berkshire Hathaway (NYSE:BRK.B) at 3.31%. These quality names demonstrate that value doesn’t mean distressed—it means established companies trading at reasonable multiples.
Vanguard’s scale advantages show up clearly in VOOV’s economics. The fund charges just 0.04% annually, meaning a $10,000 investment costs only $4 per year in fees. That rock-bottom expense ratio preserves returns while the fund’s 9% portfolio turnover keeps trading costs minimal. The 2.05% dividend yield provides steady income that compounds over time.
Performance Shows the Value Factor Works
Over the past year, VOOV returned 15.19%, slightly outpacing the S&P 500’s 13.9% as investors rotated into value. This shift accelerated in early 2026, with VOOV gaining 4.75% year-to-date while Vanguard S&P 500 Growth ETF (NYSEARCA:VOOG) fell 1.68%.
The five-year view shows how leadership alternates between factors—VOOV’s 86.28% return nearly matched growth’s 89.03% despite significant year-to-year swings. Value’s recent strength reflects changing investor priorities as rate expectations stabilize and profitability matters more than growth at any cost.
This rotation makes sense given the current rate environment. The 10-year Treasury yield sits at 4.21%, down from 4.49% a year ago. When rates stabilize at moderately elevated levels, value stocks with steady cash flows and dividends become more attractive relative to growth stocks priced on distant future earnings.
The Tradeoffs You Accept
VOOV works best as a complement to growth exposure, not a standalone position. The fund underweights technology and communication services, sectors that have driven much of the market’s gains over the past decade. During periods when mega-cap tech rallies, VOOV will lag because it concentrates heavily in traditional economy sectors rather than high-growth technology names.
The fund also concentrates heavily in financials, making it vulnerable to banking sector stress or credit cycle downturns. And while the 2.05% yield exceeds the S&P 500’s 1.02%, it still trails dedicated dividend funds.
VOOV fits portfolios seeking diversification away from growth concentration without abandoning large-cap U.S. equity exposure, but it requires accepting lower upside when technology leads the market.