There’s something interesting going on in the stock market.
The S&P 500 is hitting record high after record high, but of the 500 companies in the index, only about 20 are actually trading at their own all-time highs
The high-flying AI-linked megacaps — companies like Nvidia, Microsoft, and Meta — are pushing the index higher while hundreds of individual stocks from less flashy parts of the economy are falling behind. I think it’s a perfect time to diversify and broaden your exposure away from these AI names into more value-driven stocks. That’s why, for my money, the smartest Vanguard exchange-traded fund at the moment is the Vanguard Value ETF (NYSEMKT: VTV).
What the Vanguard Value ETF actually holds VTV tracks the CRSP U.S. Large Cap Value index — a benchmark of 311 large-cap stocks selected for classic value characteristics like low price-to-earnings (P/E) and price-to-book (P/B) ratios. They’re also largely from outside technology — names like Berkshire Hathaway, JPMorgan, and ExxonMobil dominate.