Prediction: U.S. Value Stocks Will Outperform for 10 Years. Which ETFs Should You Buy?

Prediction: U.S. value stocks are expected to outperform growth stocks for the next 10 years, according to recent research cited from Vanguard. The article compares two Vanguard ETFs that both target undervalued equities but use different management styles. Vanguard Small-Cap Value ETF (VBR) is passively managed and tracks an index of small companies; it holds 840 stocks and has generated 9.51% average annual returns since its January 2004 inception. The fund’s recent performance includes about 27% annualized returns over the past year and charges a 0.05% expense ratio. Vanguard U.S. Value Factor ETF (VFVA) is actively managed, holds 666 stocks across large-, mid-, and small-cap, and charges 0.13%. The article notes both funds have outperformed the S&P 500 and Nasdaq-100 over the past year.