After underperforming growth for years, value stocks finally had their time in the sun in 2022. The largest value-focused exchange traded fund (ETF) by net assets, the Vanguard Value ETF (NYSEMKT: VTV) , outperformed the Vanguard Growth ETF (NYSEMKT: VUG) -- the largest growth ETF by net assets -- by a staggering 31 percentage-point margin in 2022. It was the largest outperformance of value over growth in over 20 years .
After value's dominant run in 2022, the Vanguard Growth ETF is now barely outperforming the Vanguard Value ETF over the last 10 years with a total return of 229% versus a 204% total return for the Vanguard Value ETF.
This begs the question: Is growth going to continue outperforming value long-term? Or is it better to stick with value stocks instead of growth stocks? Let's find out.
For further details see:
Should You Buy Value Stocks and Sell Growth Stocks in 2023?