Value Stocks Shine as Growth Stocks Struggle

The Vanguard Value ETF (VTV) and Vanguard High Dividend Yield ETF (VYM) have recently reached all-time highs, outperforming the S&P 500 and Nasdaq in 2026. In contrast, the Vanguard Growth ETF (VUG) is up just 5% year to date.

The top holdings of these value-focused ETFs include Micron Technology (MU), Broadcom (AVGO), Caterpillar (CAT), and JPMorgan Chase (JPM). These companies have historically been viewed as safe, stodgy businesses with mature operations. However, they also exhibit growth potential through their expansion into new markets.

The key difference between these value stocks and the like of SpaceX is that earnings-driven growth drives price appreciation in value stocks, whereas growth stocks often rely on investor perceptions of future prospects.