Summary
- Vanguard’s Mega-Cap Value ETF is rated a BUY for its discounted valuation and defensive positioning amid market highs and persistent inflation.
- MGV trades at a 28% P/E and 42% price-to-book discount to the S&P 500, offering attractive relative value and sector diversific…
Summary
- Vanguard’s Mega-Cap Value ETF is rated a BUY for its discounted valuation and defensive positioning amid market highs and persistent inflation.
- MGV trades at a 28% P/E and 42% price-to-book discount to the S&P 500, offering attractive relative value and sector diversification.
- The ETF’s top holdings—JPMorgan, Berkshire Hathaway, Exxon, J&J, and Walmart—provide exposure to financials, healthcare, and consumer staples, with a focus on income and stability.
- MGV boasts an 11.75% 10-year average annual return and 2.02% yield, making it a strong value complement to a core S&P 500 allocation.
LewisTsePuiLung/iStock Editorial via Getty Images
Part of my year-end portfolio review is trimming some positions and adding to others. One of the positions I am adding this time around is the Vanguard Mega Cap Value Index Fund ETF (
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**Analyst’s Disclosure:**I/we have a beneficial long position in the shares of MGV, VOO, QQQ, GOOG, XOM, DIA either through stock ownership, options, or other derivatives. 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.
I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.
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Quick Insights
MGV trades at a 28% P/E and 42% price-to-book discount to the S&P500, making it attractive for investors seeking value and downside protection in a high-valuation market.