Play Defense With The Vanguard S&P 500 Value ETF

Michael Fitzsimmons profile picture
Michael Fitzsimmons
19.66K Followers

Summary

  • It's now clear that the July/August rise in equity markets was a bear-market rally that quickly fizzled out.
  • There are just too many headwinds to get overly bullish here: high inflation, rising interest rates, Putin's war on Ukraine that has broken global energy & food supply chains, etc.
  • That being the case, investors who haven't already positioned their portfolio in a more defensive posture should consider the "value" sector of the market.
  • The Vanguard S&P 500 Value ETF has a portfolio that is trading at a significant discount to the S&P 500 and has outperformed the S&P 500 by 6% over the past year.

Investmments and asset allocation concept. Where to Invest? Newspaper and direction sign with investment options.

Bet_Noire

We all now know the stock market's quick jump upward from mid-June to mid-August was simply a bear-market rally that quickly fizzled out and has already given back almost all the gains. And, as mentioned in the bullets above, the macro-environment

Sector Performance

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VOOV ETF Top-10 Holdings

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Berkshire Hathaway Holdings

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Data by YCharts

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Data by YCharts

VOOV versus VOO Performance

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Data by YCharts

VOOV / VOO Valuation Comparison

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This article was written by

Michael Fitzsimmons profile picture
19.66K Followers
Technology stocks, ETFs, portfolio strategy, renewable energy, and O&G companies. Primary goal is growing net-worth. I typically allocate a portion of my own portfolio and devote some of my SA articles to small and medium sized companies offering compelling risk/reward propositions. I am an Electronics Engineer, not a qualified investment advisor. While the information and data presented in my articles are obtained from company documents and/or sources believed to be reliable, they have not been independently verified. Therefore, I cannot guarantee its accuracy. I advise investors conduct their own research and due-diligence and to consult a qualified investment advisor. I explicitly disclaim any liability that may arise from investment decisions you make based on my articles. Thanks for reading and I wish you much investment success!

Disclosure: I/we have a beneficial long position in the shares of VOO, VOOV, VTV, CVX, XOM, XLP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.

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