VTV: Vanguard's Passive $169B Value ETF Is Good, But SEIV's Active Approach May Be Better

The Sunday Investor7.31K FollowersFollow5ShareSavePlay(16min)CommentsSummaryI directly compare the performance and fundamentals of the passively managed Vanguard Value ETF and the actively managed SEI Enhanced US Large Cap Value Factor ETF.VTV is easily the most popular choice, evidenced by its $169B assets under management and minimal 0.01% bid/ask spread. However, its index is constrained on the earnings growth front.In contrast, SEIV's active approach allows it to leave no factor behind. While its 11.44x forward P/E is extremely low, SEIV also excels on growth, quality, and momentum.Even when disregarding its strong performance since its inception four years ago, SEIV better aligns with my multi-factor approach, so I'm reiterating my buy rating on the fund.Meanwhile, VTV earns a solid hold rating. It's a proven ETF, and I especially like how it wins by not losing and is likely less risky than SEIV. Still, there are some drawbacks that make it not optimal for long-term investors. Sandwish/iStock via Getty Images Investment Thesis In typical Vanguard fashion, the Vanguard Value ETF (VTV) offers investors low-cost passive exposure to a broad basket of stocks that tend to perform reasonably well under all market conditions. My This article was written byThe Sunday Investor7.31K FollowersFollowThe Sunday Investor is focused exclusively on U.S. Equity ETFs. He has a strong analytical background, has received a Certificate of Advanced Investment Advice from the Canadian Securities Institute, and has completed all the educational requirements for the Chartered Investment Manager designation.Having covered hundreds of ETFs on Seeking Alpha, The Sunday Investor has developed a complex, proprietary ETF Rankings system which he shares on his website, etf-rankings.com. Nearly 1,000 ETFs receive individual factor scores covering costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment, which feed into an easy-to-understand composite score from 1-10.

The Sunday Investor is always active in the comments section in his articles - please don't hesitate to reach out via comment in any article or by visiting etf-rankings.com. Happy Investing!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.