Vanguard Large Cap strategy offers a well-diversified, market-cap-weighted portfolio that captures the large- and mid-cap opportunity set while charging a low fee, a recipe for success over the long run. 

The strategy tracks the CRSP US Large Cap Index, which captures roughly 85% of the US equity market. The index weights constituents by market cap after applying liquidity and investability screens to ensure the index is easier to track.

The end portfolio is well-diversified and accurately resembles the US large- and mid-cap opportunity set available to active managers. This allows the strategy to mimic active peers while capitalizing on its low fee, ultimately delivering sound long-term performance on both an absolute and risk-adjusted basis.

The bedrock of this strategy is market-cap weighting, which harnesses the market's collective wisdom of the relative value of each holding with the added benefit of low turnover and associated trading costs. It's a sensible approach because the market tends to do a good job pricing the stocks that make up this portfolio. Larger stocks attract liquidity and widespread investor attention, such that prices reflect new information quickly.

However, when few richly valued companies or sectors power most of the market gains, market-cap weighting may expose the strategy to stock- or sector-level concentration risk. As of January 2024, the top 10 holdings made up the largest portion of the CRSP US Large Cap Index (30%) since its inception, and the 30% allocation to technology stocks was the highest over the same period. But this is not a fault in design. The CRSP US Large Cap Index simply reflects the market composition. In the long run, its broad diversification, low turnover, and low fee outweigh these risks.

Analyst Rating

Well-constructed portfolio of US large-cap stocks.

Associate Analyst

Mo'ath Almahasneh

Microsoft

Apple

NVIDIA

Amazon

Alphabet

Berkshire Hathaway Inc. - Ordinary Shares - Class B

Eli Lilly

Broadcom

This strategy accurately captures the large-and mid-cap opportunity set, and it keeps a lid on turnover by leveraging the market's collective wisdom to size its positions. It earns a High Process Pillar rating.

High

Process

The portfolio managers on these funds are part of Vanguard’s Equity Index Group. This global team has topnotch resources and technology that support tight tracking of the fund’s target index. They earn an Above Average People Pillar rating.

Michelle Louie and Walter Nejman comanage the strategy. Louie has been with the firm since 2010 and has managed portfolios since 2014. Nejman joined the firm in 2005 and worked in investment management since 2008.

Portfolio managers not only oversee the portfolio but also execute trades on a day-to-day basis. Vanguard typically rotates portfolio managers around from one fund to another every few years to improve their breadth and depth of expertise. They also have access to Vanguard’s global trading desks, enabling them to make the most cost-efficient transactions in various global markets.

Vanguard’s portfolio managers are compensated with a bonus that factors in the gross, pretax performance of the fund relative to its objectives. This includes the manager’s record of tracking a benchmark index over the prior 12 months. These characteristics align the interests of the managers and investors.

Above Average

People

As The Vanguard Group settles on new senior leadership, it retains a High Parent rating.

Vanguard announced current CEO Tim Buckley will step down by the end of the year, marking an end to his 33 years at the firm. Historically, Vanguard has pronounced CEO retirements while simultaneously signaling who (from inside the firm) would take over. In this instance, Vanguard’s board said it will evaluate internal and external candidates in the coming months to find its next, and fifth, leader, though it also promoted CIO Greg Davis to president.

Vanguard flourished in several respects under Buckley’s leadership. Assets under management have grown by two thirds over his six years at the helm, while its asset-weighted average US fund fee ratcheted lower to 0.08% at the end of 2023. Vanguard further refined its advice business through its low-cost Digital Advisor platform and more holistic Vanguard Personal Advisor Services, and it debuted promising investment options.

Vanguard has had its share of challenges under Buckley, too. Growing its business outside the US has proved difficult, and ex US investors account for less than 10% of AUM. Between 2019 and 2023, Vanguard’s efforts to build its China business underwent dramatic shifts, with the firm ultimately abandoning plans to launch low-cost index funds there. It also ended a partnership with Ant Financial to provide advisory services to retail investors. Inside the US, customer service issues have continued to be a problem, and some of Vanguard’s newer offers, such as margin loans, seem a departure from a more-conservative approach to investing.

Vanguard retains an investor-friendly culture at its core that’s burnished by a commitment to low costs and supported by its unique mutual ownership structure and direct-to-investor playbook.

Parent

Vanguard Large-Cap ETF

VV tracks a market cap-weighted index that covers 85% of the market capitalization of the US equity market.

The fund seeks to track a market-cap-weighted portfolio that provides large-cap exposure to the US equity space.

Mid- and small-cap stocks often have negligible weightings in low-cost ETFs. Large-caps can act as a check and balance against allocations to more risky stocks.

If I Could Only Buy and Hold 1 Vanguard ETF For the Next 5 Years, This Would Be My Top Pick

Vanguard ESG US Stock ETF

Vanguard Mega Cap ETF

Vanguard Mega Cap Growth ETF

Vanguard S&P 500 ETF

Vanguard S&P 500 Growth ETF

Vanguard Total Stock Market ETF

Vanguard Growth ETF

Eight Vanguard ETFs own positions in each of the "Magnificent Seven" stocks. These Vanguard ETFs match closely on cost, risk, and five-year performance.

Want to Own All the "Magnificent Seven" Stocks? Buy One of These Vanguard ETFs.

If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Large-Cap ETF (VV), a passively managed exchange traded fund launched on 01/27/2004.

Should Vanguard Large-Cap ETF (VV) Be on Your Investing Radar?

The Vanguard Large-Cap ETF is a low-cost fund that has a solid long-term performance track record (average 10-year annual return of 11.91%). However, and while I previously recommended buying the VV ETF, I have recently changed my tune. Turns out, the VV ETF is actually less heavily weighted in Large-Cap stocks than the S&P 500 because it holds 28 additional companies in the fund (i.e. 528 total companies).

VV: Perhaps Less Of A 'Large-Cap' Fund Than The Plain-Old S&P 500

The case for investing in US equities remains mixed over multiple time horizons, but in my opinion is compelling looking 3+ years ahead. Large-cap US stocks have been the major wealth creators over the past decade, and the Vanguard Large-cap Index Fund offers diversified exposure to this segment. The debate on whether to allocate to US or non-US equities continues, with US equities trading at a premium and potential opportunities in European and Japanese stocks.

VV: Long-Term Constructive On U.S. Large Caps, Improving Technicals In Support

Vanguard's Large-Cap Index Fund offers low-cost exposure to the largest US public companies, but faces a challenging environment due to the Fed's policy to combat inflation. VV has shown marginally better performance over the past decade compared to other large-cap ETFs, but is slightly overpriced compared to its peers. For long-term investors, VV offers a strong risk/return tradeoff and is well diversified, making it a good addition to their portfolio despite the tough outlook for large-cap equities.

VV ETF: Rate Hikes Worsen The Outlook For Large Caps

Vanguard Total Bond Market ETF

SPDR Dow Jones Industrial Average ETF

SPDR Gold Trust

Vanguard Mega Cap Value ETF

SPDR Russell 1000 Yield Focus ETF

Invesco PureBeta MSCI USA ETF

Invesco QQQ

SPDR Portfolio S&P 500 ETF

SPDR Portfolio Total Stock Market ETF

SPDR S&P 500 ETF Trust

SPDR Portfolio S&P 500 High Dividend ETF

SPDR Portfolio S&P 500 Growth ETF

SPDR Portfolio S&P 500 Value ETF

Vanguard Russell 1000 ETF

Vanguard Russell 1000 Growth ETF

Vanguard Russell 1000 Value ETF

Vanguard S&P 500 Value ETF

Vanguard Value ETF

SPDR S&P Health Care Services ETF

Communication Services Select Sector SPDR Fund

Energy Select Sector SPDR Fund

This ETF trading model uses the Conference Board Leading Economic Index to determine “Risk-On” periods for equities. A universe is defined from the SPDR, Vanguard, and PowerShares ETF providers for the sectors healthcare, energy, communication, technology, and general multi-sector funds, holding large-mega cap stocks from the United States.

Timing The Stock Market With The Conference Board Leading Economic Index

Avantis U.S. Small Cap Value ETF

iShares Russell 2000 ETF

Nightshares Russell 2000 ETF

O'Shares US Small-Cap Quality Dividend ETF

Schwab U.S. Large-Cap Growth ETF

T Rowe Price Blue Chip Growth ETF

Bull vs. Bear is a weekly feature where the VettaFi writers' room takes opposite sides for a debate on controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs.

Bull vs. Bear: Will Small-Caps Shine in a Coming Recession?

VV invests in large-cap U.S. stocks. The fund has performed quite well over the long run.

VV: Downside Risks Outweigh Upside Potential In 2023

Vanguard Short-Term Bond ETF

Invesco DB Commodity Index Tracking Fund

VanEck Vectors Gold Miners ETF

Legg Mason Low Volatility High Dividend ETF

ProShares Short S&P500

Vanguard Intermediate-Term Corporate Bond ETF

Vanguard Consumer Staples ETF

Vanguard U.S. Minimum Volatility ETF

Vanguard Health Care ETF

Vanguard Real Estate ETF

Vanguard Short-Term Inflation-Protected Securities ETF

Vanguard Ultra Short-Term Bond ETF

Vanguard Emerging Markets Government Bond ETF

Vanguard Total International Stock ETF

Vanguard High Dividend Yield ETF

Consumer Staples Select Sector SPDR Fund

Utilities Select Sector SPDR Fund

Expert recommendations for choosing among the myriad of Vanguard ETFs may prove to be a valuable resource to investors, even if not all of them will prove right. I present such recommendations made by highly knowledgeable sources, along with my own recommendations and the reasons for them.

Vanguard ETFs: Recommendations For 2023

Picking stocks that will perform well will remain a challenge throughout 2023. With macroeconomic headwinds continuing, volatility is likely to be sustained.

The 3 Best Vanguard ETFs for 2023

It was a bullish, more than a strong, December payrolls report. A better-than-forecast headline jobs gain in the establishment report featured weaker earnings data from the household survey.

A Bullish Jobs Report: Strong December Employment, Weaker Hourly Earnings, Yet VV Still Trends Lower

Should Vanguard LargeCap ETF (VV) Be on Your Investing Radar?

Ameriprise Financial

ETRADE

iShares North American Tech-Software ETF

iShares Core S&P Small Cap ETF

iShares Core S&P 500 ETF

SPDR S&P Midcap 400 ETF Trust

iShares PHLX Semiconductor ETF

Financial Select Sector SPDR Fund

Technology Select Sector SPDR Fund

If you had a crystal ball that told you what the stock market is going to do, how would you use it? To pick investments, right?

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Vanguard Small-Cap ETF

Vanguard Energy ETF

Vanguard Dividend Appreciation ETF

Vanguard Total World Stock ETF

Vanguard FTSE Emerging Markets ETF

Editor's note: This article is regularly updated with the latest information. Exchange-traded funds (ETFs) have long been an integral component of Wall Street and there may be no better player in this game than Vanguard.

The 7 Best Vanguard ETFs to Buy Now

The Vanguard High Dividend Yield ETF seeks to track the performance of the FTSE High Dividend Yield Index, which has provided a yield advantage over the other ETF. The Vanguard Large-Cap ETF seeks to track the performance of the CRSP US Large Cap Index. Sometimes, the lower yielding ETF has a superior total return though.

VYM Vs. VV: Extra Yield Means Giving Up Return (Sometimes)

Presenting an opportunity to invest across a wide canvas of opportunities, these are the best Vanguard ETFs to buy in July. The post The 7 Best Vanguard ETFs to Buy in July 2022 appeared first on InvestorPlace.

The 7 Best Vanguard ETFs to Buy in July 2022

The Vanguard Large Cap ETF holds the largest companies in corporate America - most all of which have established and very popular global brands. The fund is relatively inexpensive to own (the expense ratio is only 0.04%) and its long-term track record is very strong.

The Vanguard Large Cap ETF: A Strong Candidate For The Long-Term Investor's Portfolio

iShares Core U.S. Aggregate Bond ETF

iShares Core S&P Total U.S. Stock Market ETF

Schwab U.S. Small-Cap ETF

Schwab U.S. Broad Market ETF

Schwab U.S. Mid-Cap ETF

Schwab U.S. Large-Cap Value ETF

SoFi Select 500 ETF

Keeping the importance of expense ratio in mind, we have highlighted the 25 cheapest ETFs currently on the market and have AUM of more than $50 million.

A Quick Guide to the 25 Cheapest ETFs

First Trust Large Cap Core AlphaDEX Fund

iShares Dow Jones U.S. ETF

Invesco S&P 500 Equal Weight ETF

Schwab U.S. Large-Cap ETF

Q.ai's deep learning algorithms have identified several top US Large Cap Smart Beta ETFs based on fund flows. Diversify your portfolio and mitigate risk with these ETFs.

Artificial Intelligence Ranks Schwab US Large-Cap ETF Best Smart Beta ETF

Total segment ETFs like the Vanguard Large Cap ETF are useful for investors wanting segment exposure without the need for making the Growth versus Value choice. Most ETF sponsors provide investors with the ability to set their own Growth/Value allocation by offering an ETF focused on each area.

Skip Vanguard's VV ETF And Build Your Own Growth And Value Allocation Using The VUG And VTV ETFs

VV is not as cheap as IVV or SPLG and also offers lower yields. VV is dominated by the tech names and the FAANGM stocks.

Vanguard Large-Cap ETF: The Stalwarts May See A Comeback

VV: Vanguard's Large Cap ETF Offers Exposure To New And Innovative Companies That You Don't Get In The S&P 500

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News for Vanguard Large-Cap ETF ETF (VV)