VLUE outperforms VTV by focusing on sector-neutral cheap stocks versus VTV's mega-cap value approach.

VLUE and VTV are both value ETFs but use different strategies: VLUE targets the cheapest stocks within each sector, maintaining sector neutrality, while VTV invests in a broad, market-cap-weighted basket of large-cap value stocks. This difference led VLUE to return 71.64% over the past year, significantly outperforming VTV's 25.63%, driven by heavy tech and semiconductor holdings like Micron and Intel. VTV offers steadier income and less concentration risk with a focus on dividend-paying mega-caps. Investors should choose VTV for broad, stable value exposure and VLUE for targeted value factor bets with higher volatility risk.