VONV ETF: Missing The Mark Within The Value Sector
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Nikola Lapenna201 FollowersFollow5ShareSavePlay(9min)CommentsSummaryThe Vanguard Russell 1000 Value Index Fund ETF (VONV) has underperformed peers and fails to deliver compelling risk-adjusted returns versus other low-fee options.VONV's value tilt results in exposure to lower-quality businesses, with a Sharpe ratio of 0.74 and limited dividend support.The fund's overweight in financials and industrials, and underweight in tech, has not mitigated recent drawdowns or enabled strong bouncebacks.I rate VONV a hold, preferring IWB or IWL for better risk-adjusted returns and cleaner exposure to large-cap equities. J Studios/DigitalVision via Getty Images VONV At A Glance The Vanguard Russell 1000 Value Index Fund ETF (VONV) is a passively managed exchange-traded fund that invests in U.S. large-cap stocks to construct an equity portfolio that looks at multipleThis article was written byNikola Lapenna201 FollowersFollowWith over three years of finance and consulting experience, Nikola is laser focused on finding value in North American public equities and ETF's. His professional experience includes corporate credit risk analysis, consulting for government entities, and venture capital analysis in the med-tech space. More recently, Nikola has helped investors narrow down better options for ETF's - every asset manager seems to have similar offerings these days. Nikola is not a licensed financial advisor and nothing in his commentary here on Seeking Alpha should be regarded as advice. All of his opinions are his own, and not on behalf of any other entities.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.