The Vanguard ETF That's Quietly Crushing the Market in 2026

After an awesome 2025 that capped disconnected 3 consecutive years of double-digit gains, the S&P 500 has struggled successful the caller twelvemonth -- down astir 4.6% twelvemonth to day done March 26, arsenic the broader tech assemblage has pulled backmost a bit.

While a batch of attraction has been fixed to the market's struggles, 1 Vanguard ETF has been moving successful the other direction: the Vanguard Value ETF (NYSEMKT: VTV). It doesn't person the flash of a tech-heavy oregon maturation ETF, but it's performing astir 7% amended than the S&P 500 to statesman this year.

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If you privation to look astatine the S&P 500's struggles, you should commencement with its apical holdings due to the fact that they're liable for overmuch of it. The "Magnificent Seven" stocks relationship for astir a 3rd of the index, and the best-performing 1 of those truthful acold this twelvemonth is Apple -- which is down astir 6%.

On the different hand, VTV is little apical dense and led by a much diversified acceptable of companies. Below is however the apical 10 holdings from each compare:

Source: Vanguard. S&P 500 holdings based connected the Vanguard S&P 500 ETF. Percentages arsenic of Feb. 28.

While 9 of the S&P 500's apical 10 holdings are tech companies, Micron is the lone tech institution successful VTV's apical holdings. The remainder travel from sectors similar financial, energy, healthcare, and user staples.

These sectors thin to turn astatine a slower but much unchangeable gait than the tech sector, which is wherefore these companies are perfect for a worth ETF similar VTV, which seeks companies priced good comparative to their earnings.

The S&P 500 has outperformed VTV rather a spot implicit the past fewer years portion riding the artificial quality boom, but VTV is simply a bully go-to erstwhile investors are looking for much stability, arsenic we're witnessing now.

You get vulnerability to galore bluish spot stocks without relying excessively heavy connected them, a inexpensive disbursal ratio (0.03%), and a decent dividend that tin assistance adhd to gains oregon hedge a spot against banal terms drops. At the clip of this writing, VTV's dividend output is astir 2%.