A Look At Two Similar Vanguard ETFs (VIG, VTV)
Vanguard offers two ETFs that can be described as "value plays" and on the surface, both offerings may appear to be twins. With that, let's take a look at the Vanguard Value ETF (NYSE: VTV) and the
Vanguard Dividend Appreciation ETF (NYSE: VIG).
VTV offers an expense ratio of 0.1% and has $3.13 billion in asets. VIG's expense ratio is 0.24% and has $2.19 billion in assets.
Among their top 10 holdings, Wells Fargo (NYSE: WFC), Chevron (NYSE: CVX) are found in both ETFs and there are plenty of other examples of duplication throughout both ETFs when you look at the broader holdings as both ETFs hold hundreds of stocks.
In the past year, VTV is up 60% while VIG is up just under 50%. The bottom line is both ETFs are solid choices for conservative and either can be used as a "portfolio builder," but there is little reason to hold both at the same time.
The Professor leans toward VTV because it is not intended to be dividend ETF as VIG is, but VTV offers the superior yield at 2.91% compared to 2.14% for VIG.
