Vanguard’s two widely used U.S. equity ETFs—Vanguard Total Stock Market ETF and Vanguard Value ETF—offer investors ultra-low-cost exposure, but they deliver very different portfolio profiles. Both funds carry an expense ratio of 0.03%, yet VTV’s value tilt has produced a higher trailing dividend yield than VTI, while VTI’s broader holdings have leaned more heavily toward technology.
Key takeaways
- Price move: Over the trailing 12 months, VTI generated a total return of 24.78% as of June 13, 2026, versus VTV’s 26.89%.
- Catalyst: The gap in performance and income characteristics stems from differing index construction—broad-market coverage in VTI versus large-cap value selection in VTV.
- Key implication: Investors seeking income may find VTV’s value exposure and higher dividend yield more aligned, while VTI can serve as a core holding for maximum diversification.
- Risk profile: VTV’s five-year max drawdown was -17.03%, compared with VTI’s -25.36%, reflecting a lower beta and historically less downside volatility.
Cost and trailing performance
Both ETFs are built around Vanguard’s low-fee approach, with a 0.03% expense ratio. On a total-return basis, recent data shows VTV outperformed VTI over the last 12 months, with 26.89% for VTV and 24.78% for VTI (both figures as of June 13, 2026).
Income characteristics diverge more clearly. VTV’s trailing-12-month dividend yield is listed at 1.88%, while VTI’s is 1.01%, underscoring how a value mandate typically emphasizes mature, cash-generative companies over faster-growing profiles.
What’s inside the funds
VTI holds a broad mix of U.S. equities across market sizes, tracking 3,484 stocks spanning small-, mid-, and large-cap segments. Its sector composition is led by technology at about 34% of assets, followed by financial services and communication services. The fund’s largest holdings include Nvidia, Apple, and Microsoft, reflecting its exposure to both growth and value companies across the market.
VTV, by contrast, concentrates on 309 large-cap value stocks. Rather than covering the entire equity spectrum, it targets companies identified as undervalued based on fundamental metrics. This approach shapes a distinct sector profile, with financial services at about 22% of assets, followed by healthcare and industrials. VTV’s top holdings include JPMorgan Chase, Berkshire Hathaway, and Exxon Mobil.
Risk and diversification trade-offs
Although both funds are designed to hold equities for long-term investors, their construction affects volatility. Data provided shows VTV has a beta of 0.72 versus VTI’s 1.03, suggesting VTV has historically moved less aggressively than the broader market and carries relatively lower sensitivity to market swings.
That difference shows up in drawdown statistics. Over five years, VTI’s max drawdown is listed at -25.36%, compared with -17.03% for VTV. While neither outcome guarantees future performance, the figures suggest that tilting toward large-cap value stocks may have provided stronger downside resilience during the last completed five-year window.
From a diversification standpoint, VTI’s case is straightforward: thousands of holdings across market segments and styles can reduce single-stock or single-sector concentration risk. However, technology still represents roughly one-third of the portfolio—enough to matter in periods when growth and tech stocks trade sharply.
VTV’s diversification is narrower by design. With a smaller count of holdings and a value-centered approach, it can deliver a steadier income profile and a more defensive sector mix, but it may lag when growth leadership dominates and investors rotate away from value.
Market interpretation and what investors should consider
According to the portfolio descriptions and metrics provided, the choice between VTI and VTV largely comes down to an investor’s priority: broad-market participation versus value-focused income and historically lower volatility characteristics. VTI is positioned as a core holding for investors seeking wide exposure to the U.S. equity market, whereas VTV may better fit portfolios that want large-cap value exposure and a higher dividend yield.
For investors comparing the funds, the key decision variables are likely to be the income target (VTV’s 1.88% versus VTI’s 1.01%), the risk tolerance implied by beta (0.72 versus 1.03), and how much emphasis they want on technology versus financial services within the equity sleeve.
Looking ahead, investors will likely watch how sector leadership evolves, particularly whether markets continue to reward growth and technology or rotate toward value and dividend-paying companies. With U.S. equity funds like these, next catalysts typically include upcoming quarterly earnings season for major holdings, and macro data that influences expectations for interest rates and inflation—factors that often affect both valuation multiples and dividend reliability.
