Investors seeking to avoid high-valuation IPOs like SpaceX and Anthropic may consider the Vanguard Value ETF, which excludes growth stocks.
SpaceX plans to raise $75 billion in an IPO valuing the company at nearly $1.77 trillion, set to be the largest in history. Anthropic and OpenAI are also expected to go public later this year, drawing investor attention amid valuation concerns.
The Vanguard Value ETF (VTV) filters the S&P 500 to exclude growth-focused companies, including Nvidia, Alphabet, and Microsoft. With 309 holdings, it avoids high-profile IPOs like SpaceX, Anthropic, and OpenAI, which may soon be added to broader indexes like the Nasdaq-100.
New Nasdaq-100 rules will expedite the inclusion of megacap companies, leading passively managed ETFs to potentially buy these stocks in large quantities. The Vanguard Value ETF provides an alternative for investors preferring established value stocks.