- Vanguard offers numerous size, style, sector, and ESG-focused ETFs that passively track CRSP Indexes, which take a unique approach to minimizing turnover and transaction costs.
- Today, I will be comparing the Vanguard Mega Cap ETF and the Vanguard Mega Cap Value ETF. Both have over $4 billion in AUM and a 0.07% expense ratio.
- The two have reasonable valuations when compared with the S&P 500 and the S&P 500 Value Indexes. In particular, MGV trades at an attractive 17x forward earnings.
- Price-earnings ratios still concern me, so I favor MGV. However, MGC is a solid alternative to an S&P 500 Index ETF, and I don't think investors can go wrong with either in the long run.
- I'm rating MGV as a buy and MGC as a hold. I believe growth stocks have more room to fall, tilting more toward value stocks makes sense in the meantime.
For further details see:
MGC Vs. MGV: Why Mega-Cap Value Will Win