World Stock Watch

Unlocking the Power of the Vanguard Value ETF

With a staggering $186 billion in net assets and an ultra-low expense ratio of 0.04%, the Vanguard Value ETF (NYSEMKT: VTV) is a behemoth in the world of exchange-traded funds (ETFs). This powerhouse fund offers investors a diversified portfolio of 336 holdings across various sectors, boasting a respectable yield of 2.3%. While the ETF provides an excellent way to passively invest in top value stocks, some investors may seek to amplify their exposure to the fund’s standout opportunities.

Five Top Picks from the Vanguard Value ETF

If I had to choose only five stocks from the hundreds in the Vanguard Value ETF through 2025, I would opt for a mix of high-yield blue-chip dividend stocks and top tech performers. My picks would include:

Passive Income Powerhouses

• Coca-Cola (NYSE: KO) and PepsiCo (NASDAQ: PEP): Both Dividend Kings, Coke and Pepsi have consistently paid and raised their dividends for 62 and 52 consecutive years, respectively. Despite recent sell-offs due to weak consumer spending and pricing pressure, these companies possess phenomenal product portfolios and seem poised for a rebound.
• Chevron (NYSE: CVX): With a 37-year streak of dividend increases and a whopping 4.3% yield, Chevron offers a compelling opportunity for patient investors. Its diversified exploration and production portfolio, combined with a sizable refining and marketing business, make it well-equipped to navigate fluctuating oil prices.

Tech Titans

• Broadcom (NASDAQ: AVGO): This hardware and software solutions provider has accelerated revenue growth in recent years, driven by its catch-all approach to investing in global connectivity and infrastructure. With a growing dividend and a commitment to passing profits to shareholders, Broadcom represents an attractive blend of value and passive income.
• Oracle (NYSE: ORCL): This veteran tech company has shifted its focus to cloud computing, fueling high-margin sales growth. With a 15-year history of paying dividends and a strong track record of increasing its payout, Oracle offers investors a unique combination of value and income potential.

These five stocks offer a compelling mix of passive income, growth potential, and value investing opportunities. By focusing on these standout performers within the Vanguard Value ETF, investors can enhance their exposure to the fund’s most attractive investment opportunities.