VTV rises 11% year-to-date, surpassing VUG’s 9.4% return amid higher Treasury yields and shifting market breadth.
Vanguard Value ETF (VTV) has gained 11% year-to-date, outperforming the Vanguard Growth ETF (VUG), which returned 9.4%. The shift follows rising Treasury yields, with the 10-year at 4.46% and the 30-year at 4.99%, pressuring long-duration growth stocks.
Over five years, VTV returned 71%, lagging VUG’s 103% and the SPDR S&P 500 ETF’s (SPY) 92%. However, recent months show a narrowing gap as value stocks’ dividend yields compete with Treasuries, while tech megacaps’ dominance wanes.
The rotation reflects broader market participation beyond AI-driven growth, with financials, healthcare, and industrials leading the charge. VTV’s 0.03% expense ratio further bolsters its appeal in a higher-rate environment.