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Could Finding Value in the Face of Growth Domination Be a Winning Strategy for 2025?
The S&P 500 has enjoyed a fantastic year, driven largely by the phenomenal performance of growth stocks like Nvidia. While growth ETFs have seen explosive gains, other sectors have lagged behind. This begs the question: could investors find a winning strategy by focusing on value-oriented funds in 2025?
Picking Value Over Growth in 2025
Image source: Getty Images.
This article highlights three Vanguard ETFs, each offering a unique approach to navigating the market:
- **Vanguard Dividend Appreciation ETF (VIG):** This ETF focuses on companies with a history of consistent dividend growth. It blends growth and value stocks and avoids simply chasing high yields, making it a promising option for passive income seekers who appreciate a balanced approach.
- **Vanguard S&P 500 Value ETF (VOOV):** This ETF provides exposure to undervalued stocks within the S&P 500, offering potentially lower risk with a higher dividend yield compared to broader market index funds.
- **Vanguard Energy ETF (VDE):** Focused on the energy sector, this ETF takes advantage of the potential for robust growth in oil and natural gas prices while acknowledging the sector’s inherent volatility.
Considering the Market Climate
While growth stocks may continue to perform