Vanguard's Value ETF outperforms Growth ETF by 11 points in 2026, avoiding tech giants' concentration risk.

In 2026, Vanguard's Value ETF (VTV) has outperformed its Growth counterpart (VUG) by about 11 percentage points, returning 19.45% versus 8.66%. Both funds share the same large-cap universe and fees, but VTV excludes the 'Magnificent Seven' tech giants like Apple and Microsoft, which dominate VUG. This makes VTV a diversifier, reducing concentration risk for investors who already own these big tech stocks in other funds. Over longer periods, VTV has regained competitiveness, appealing especially to investors near retirement seeking income and diversification. However, value investing can lag during tech-driven growth phases, so investors should consider their tax situation and time horizon before switching.