5 Best Vanguard ETFs to Invest In

2. Vanguard Value Index Fund ETF Shares (NYSE:VTV)

Vanguard Value Index Fund ETF Shares (NYSE:VTV) is a passively managed exchange traded fund that fully replicates the performance of the CRSP US Large Cap Value Index, which measures the investment return of large-cap value stocks. The ETF’s portfolio holds 351 securities as of January 31, with a top ten holdings concentration of 20.4%. The net assets of the exchange traded fund amounted to $141.4 billion. 

A notable underlying security in Vanguard Value Index Fund ETF Shares (NYSE:VTV)’s portfolio is JPMorgan Chase & Co. (NYSE:JPM), which operates as a financial services company worldwide, offering consumer and community banking, corporate and investment banking, and asset management. 

JPMorgan Chase & Co. (NYSE:JPM) announced on March 8 that it will exclude Russian sovereign and corporate debt from its closely watched fixed-income indexes, including the Emerging Market Bond Index and the Corporate Emerging Market Bond Index, as of March 31. At the same time, the company will exclude Belarus’s sovereign debt from its environmental, social, and governance-linked indexes.

Institutional investors hold large stakes in JPMorgan Chase & Co. (NYSE:JPM), and according to the fourth quarter database of Insider Monkey, 107 elite funds were bullish on the stock, up from 101 funds in the prior quarter. GQG Partners is a prominent shareholder of JPMorgan Chase & Co. (NYSE:JPM), with more than 5 million shares worth $806.7 million. 

Here is what Miller Value Partners Opportunity Equity has to say about JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter:

“I remember writing about the attractiveness of JP Morgan (JPM) right before it lost about a third of its value in the third quarter of 2011 (which didn’t please some of my colleagues!). I believed JPM was a high-quality bank whose prospects were undervalued due to the overhang on the space. It made money every year through the financial crisis.

In the decade-plus since then, JPM has beaten the market nicely (+417% versus SPX +345%) despite significant headwinds for banks (S&P Financial Sector +286%) and value stocks. Low market expectations are a key ingredient to attractive long-term returns!

An earthquake after-shock metaphor helps to explain the situation. Earthquakes relieve tension in physical systems, but aftershocks are common. These aftershocks aren’t as serious as the original event because stresses have been relieved. The financial crisis alleviated tensions in the financial system as weaker players either perished or were shored up with capital. Lessons learned impacted behavior (lower risk-taking behavior and higher propensity for monetary authorities to intervene supportively), which reduced future risk.

Those realities didn’t matter in the short term, but they sure did in the long term.”