Vanguard Russell 1000 Value ETF (NASDAQ: VONV)

Latest news for Vanguard Russell 1000 Value ETF (NASDAQ:VONV)

Vanguard Russell 1000 Value ETF

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The fund employs an indexing investment approach designed to track the performance of the Russell 1000 Value Index. The index is designed to measure the performance of large-capitalization value stocks in the United States. The Advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

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Chevron Corp.

Bank Of America Corp.

Thermo Fisher Scientific Inc

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BYND

iShares Trust Russell MidCap Value Index Fund

VONV

4 ETFs You Won&#39;t Believe Hold Beyond Meat Stock

Small Cap Analysis

VOOG

VTWG

3 Vanguard ETFs That Just Got Cheaper

Large-Cap Value and Short-Term Treasury: 2 ETFs to Watch on Outsized Volume

It can be said that value is in the eye of the beholder, but there probably isn&#39;t a practical universe in which Beyond Meat (NASDAQ:<a class="ticker" href="/stock/BYND#NASDAQ">BYND</a>) stock is considered value fare.

Value stocks typically don&#39;t rise 71% in less than a month as Beyond Meat shares have done so to start 2020. For those that need more convincing this stock isn&#39;t more expensive, there&#39;s the following data <a href="https://www.morningstar.com/stocks/xnas/bynd/quote">courtesy of Morningstar</a>: a price-to-sales ratio of 28.62 times, a price-to-book ratio of 17.82 times and a jaw-dropping forward price-to-earnings ratio of 416.67 times.

The research firm classifies Beyond Meat as a mid-cap growth stock, yet here we are discussing the stock&#39;s appearance in not one, but several value exchange traded funds.

To be fair, the following funds don&#39;t necessarily have significant Beyond Meat exposure on a percentage basis. Few ETFs do, but some of these products are value funds and are among the largest shareholders in Beyond Meat, a stock that clearly isn&#39;t a value proposition.

<h3>iShares Russell 1000 Value ETF (IWD)</h3>

The iShares Russell 1000 Value ETF (NYSE:<a class="ticker" href="/stock/IWD#NYSE">IWD</a>) tracks the Russell 1000 Value Index, the value offshoot of the popular Russell 1000, and holds 764 stocks. Beyond Meat represents a scant <a href="https://www.ishares.com/us/products/239708/?referrer=tickerSearch">0.03% of this ETF&#39;s weight</a>, but this fund does hold nearly 136,000 shares of the stock. On that basis, IWD is one of the largest ETF owners of Beyond Meat and, as its name implies, is a value fund.

See Also: <a href="https://www.benzinga.com/news/20/01/15161024/beyond-meat-shares-surge-as-starbucks-looks-towards-plant-options-in-carbon-pledge">Beyond Meat Shares Surge As Starbucks Looks Towards Plant Options In Carbon Pledge</a>

<h3>iShares Russell Mid-Cap Value ETF (IWS)</h3>

I thought I said Morningstar classifies beyond as a mid-cap growth stock? I did, but here it is appearing in the iShares Russell Mid-Cap Value ETF (NYSE:<a class="ticker" href="/stock/IWS#NYSE">IWS</a>), which is supposed to be a mid-cap value fund.

The $12 billion IWS follows the Russell MidCap Value Index and holds 631 stocks, none of which exceed weights of 0.90%, so its fair to say Beyond Meat doesn&#39;t dominate this fund. It doesn&#39;t. Not at <a href="https://www.ishares.com/us/products/239719/?referrer=tickerSearch">weight of 0.10%</a>, but the stock&#39;s residence in this ETF is still quixotic at best.

<h3>Vanguard Small-Cap Value ETF (VBR)</h3>

This is where things get really interesting. The Vanguard Small-Cap Value ETF (NYSE:<a class="ticker" href="/stock/VBR#NYSE">VBR</a>) is a fine fund, but for those who believe in small-cap territory ending in the $2 billion to $2.5 billion, VBR is a violator with a median market value of $4.2 billion, but even that&#39;s a far cry from Beyond Meat&#39;s $7.71 billion market value.

No matter how liberal the application of &ldquo;small cap&rdquo; is, it&#39;s hard to call Beyond Meat a small-cap stock, let alone one with the value designation. Yet somehow someway, VBR owns more shares of Beyond Meat (nearly 308,000) than any other ETF.

<h3>Vanguard Russell 1000 Value ETF (VONV)</h3>

See the commentary on IWD because VONV also tracks the Russel 1000 Value Index.

4 ETFs You Won't Believe Hold Beyond Meat Stock

In the world of exchange traded funds, Vanguard is famous for low fees. Across various equity market segments and some corners of the fixed income universe, if there&#39;s a Vanguard ETF for it, there&#39;s a reasonably good chance that product is the cheapest or one of the least expensive in its respective asset class.

To its credit, Vanguard doesn&#39;t rest on its low cost laurels. The issuer frequently lowers fees on ETFs as those products attract more assets, providing investors with cost efficiencies that prove meaningful over the long term.

The Pennsylvania-based was recently at it again as it was revealed Vanguard trimmed expense ratios on 15 of its equity-based ETFs tracking Russell and S&amp;P benchmark.

Let&#39;s examine a few of Vanguard&#39;s previously inexpensive now even cheaper ETFs here.

Vanguard Russell 1000 Value ETF (VONV)

With value stocks receiving increased attention, the Vanguard Russell 1000 Value ETF (NASDAQ:<a class="ticker" href="/stock/VONV#NASDAQ">VONV</a>) may have found its way into the spotlight anyway, but a fee cut could move that process along. VONV&#39;s new expense ratio <a href="https://www.inquirer.com/business/vanguard-schwab-fidelity-etf-fee-war-20191107.html?mod=article_inline">is 0.15% per year</a>, or $15 on a $10,000 investment, down from 0.20%.

There are some cheaper value ETFs on the market, but many lack the depth of VONV and other Russell 1000 Value Index tracking funds. This Vanguard fund holds 765 stocks, giving it a deep bench compared to some rival large-cap value funds.

Up almost 20% year to date, VONV allocates 29.5% of its weight to financial services stocks. The overweight to that sector is par for the course with value ETFs. Consumer discretionary and health care names combine for about 23% of VONV&#39;s roster.

Vanguard S&amp;P 500 Growth ETF (VOOG)

Investors don&#39;t have to be dedicated to value or growth. The factors can be combined and it might be a good time to consider such a strategy with value looking attractive while growth is far from done. Even for investors opting to emphasize growth, the Vanguard S&amp;P 500 Growth ETF (NASDAQ:<a class="ticker" href="/stock/VOOG#NASDAQ">VOOG</a>) is now less expensive with annual fee of 0.10%, down from 0.15%.

VOOG targets the S&amp;P 500 Growth Index, one of the most widely observed gauges of growth stocks. The fund holds 297 stocks with a median market value of $145.6 billion and its top 10 holdings <a href="https://investor.vanguard.com/etf/profile/portfolio/voog">combine for nearly a third of its weight</a>.

As is the case with value ETFs, sector allocations can be predictable, but in different directions, with growth funds. VOOG devotes almost 27% of its weight to technology stocks while the communication services and consumer cyclical sectors combine for 26.60%.

Vanguard Russell 2000 Growth ETF (VTWG)

Small-cap ETFs are usually more expensive than their large-cap rivals and the same is true of factor-based strategies compared to cap-weighted funds. Put those traits together and it makes for a pricier ETF. However, Vanguard Russell 2000 Growth ETF (NASDAQ:<a class="ticker" href="/stock/VTWG#NASDAQ">VTWG</a>) is reasonably priced with a new annual fee of 0.10%, down from 0.15%.

VTWG merits near-term consideration because the seasonally strong period for small caps is near and the fund is higher by 4.62% over the past month. This inexpensive Vanguard now resides 2.19% below its 52-week high.

Small-cap growth ETFs are often test investors&#39; sense of risk and reward. Over the past three years, VTWG has been more volatile than the Russell 2000 Index, but the Vanguard has also topped that small-cap benchmark by 920 basis points over that span.

Related Links:

<a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/11/14793639/a-highly-rated-mid-cap-etf">This Is A Gem Among Mid-Cap ETFs</a>

<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/11/14793271/rex-shares-rolls-out-a-new-etn-for-faang-fans">Have Fun With FAANG ETN</a>

Not surprisingly, Vanguard, the third-largest U.S. ETF sponsor, has something to say about the ongoing 2012 ETF fee battle. Pennsylvania-based, known for being one of the ETF industry's low-cost leaders, announced fee reductions for 11 of its ETFs. The fee reductions took effect last week, <a href="https://advisors.vanguard.com/VGApp/iip/site/advisor/researchcommentary/article/IWE_NewsDec2012ExpenseRatio">according to a statement issued by Vanguard</a>.

The 11 Vanguard ETFs that are now home to lower fees include the Vanguard Intermediate-Term Corporate Bond (NASDAQ: <a class="ticker" href="/stock/vcit#NASDAQ">VCIT</a>), which now has an expense ratio of 0.12 percent down from 0.14 percent. The Vanguard Intermediate-Term Government Bond ETF (NASDAQ: <a class="ticker" href="/stock/vgit#NASDAQ">VGIT</a>), the Vanguard Long-Term Corporate Bond ETF (NASDAQ: <a class="ticker" href="/stock/vclt#NASDAQ">VCLT</a>) and the Vanguard Long-Term Government Bond ETF (NASDAQ: <a class="ticker" href="/stock/vglt#NASDAQ">VGLT</a>) also saw fee reductions to 0.12 percent per year from 0.14 percent.

Other fee reductions include the Vanguard Mortgage-Backed Securities Index ETF (NASDAQ: <a class="ticker" href="/stock/vmbs#NASDAQ">VMBS</a>) going to 0.12 percent from 0.15 percent. The Vanguard Russell 1000 Value Index ETF (NASDAQ: <a class="ticker" href="/stock/vonv#NASDAQ">VONV</a>) now charges 0.15 percent down from 0.16 percent while the Vanguard Russell 2000 Index ETF (NASDAQ: <a class="ticker" href="/stock/vtwo#NASDAQ">VTWO</a>) saw its fees reduced to 0.21 percent from 0.22 percent.

Vanguard lowered fees on another small-cap ETF, taking the expense ratio on the Vanguard Russell 2000 Value Index ETF (NASDAQ: <a class="ticker" href="/stock/vtwv#NASDAQ">VTWV</a>) to 0.32 percent per year from 0.33 percent. The Vanguard Russell 3000 Index ETF (NASDAQ: <a class="ticker" href="/stock/vthr#NASDAQ">VTHR</a>) is now charging 0.15 percent down from 0.16 percent.

The Vanguard Short-Term Corp Bond Index ETF (NASDAQ: VSCH) and the Vanguard Short-Term Government Bond Index ETF (NASDAQ: <a class="ticker" href="/stock/vgsh#NASDAQ">VGSH</a>) both saw fee cuts to 0.12 percent per year from 0.14 percent.

Over the past year, a broad swath of ETF issuers have lowered fees in an effort to attract fresh capital from investors. Vanguard's most recent fee-cut announcement is by no means the firm's first and issuers such as Charles Schwab (NYSE: <a class="ticker" href="/stock/schw#NYSE">SCHW</a>) and State Street's (NYSE: <a class="ticker" href="/stock/stt#NYSE">STT</a>) State Street Global Advisors (SSgA) have announced fee reductions of their own. SSgA is the second-largest U.S. ETF sponsor.

BlackRock's (NYSE: <a class="ticker" href="/stock/blk#NYSE">BLK</a>) iShares, the world's largest ETF issuer and the firm often viewed as Vanguard's primary rival, announced fee cuts of its own earlier this year. In late November, Invesco's (NYSE: <a class="ticker" href="/stock/ivz#NYSE">IVZ</a>) PowerShares unit, the fourth-largest U.S. ETF sponsor, <a href="http://www.benzinga.com/news/12/11/3128183/powershares-fires-its-own-shot-in-etf-fee-war">signaled it would not be left out of the fee war</a> by announcing lower fees on six of its ETFs.

For its part, Vanguard's fee cuts may not be a direct response to what rival firms are doing, but rather the result of the firm's corporate structure and its ability to drive cost savings through economies of scale.

"Other investment firms may lower costs as a business strategy to attract assets," the firm said in the statement. "For Vanguard, our unique client-owned corporate structure is what drives the low costs of our funds. Since we are a mutually owned firm, low costs are an outcome that is directly tied to how much it costs us to manage our funds. Economies of scale and a focus on keeping operating costs low have resulted in a long track record of Vanguard lowering costs across the board."

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

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