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Some investors are concerned that the artificial intelligence (AI) boom is an overpriced bubble that might burst. If you’re worried about high valuations of tech stocks, buying value stocks might be a different approach to keep your money growing.
According to recent Vanguard research, U.S. value stocks are expected to outperform U.S. growth stocks over the next 10 years. The Vanguard U.S. Value Factor ETF (NYSEMKT: VFVA) could be a smart way to invest in this trend. VFVA offers exposure to a diversified mix of 687 value stocks of companies of all sizes (from small-caps to large-caps).
Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
Let’s see how much a $10,000 investment in this value stock ETF could grow in the next five years.
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VFVA: 5 years of 12.5% annualized returns
For the past five years, the Vanguard U.S. Value Factor ETF has delivered average annual returns of about 12.5%. It’s done even better recently, with 18.7% annualized returns for the past three years.
There’s no guarantee that these past results will continue. But let’s assume that you invest $10,000 in VFVA today, and that the ETF keeps delivering the same 12.5% annualized return for the next five years. By September 2031, your $10,000 investment would grow to $18,020.
What if VFVA grows even faster? If this value stock ETF delivers an 18.7% annualized return for the next five years, $10,000 invested today would grow to $23,564 by 2031.
No one knows which stocks or ETFs will do best by 2031. But if you want to put money into a different part of the stock market than tech stocks or AI stocks, the Vanguard U.S. Value Factor ETF could be worth a look.
Should you buy stock in Vanguard Wellington Fund – Vanguard U.s. Value Factor ETF right now?
Before you buy stock in Vanguard Wellington Fund – Vanguard U.s. Value Factor ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Wellington Fund – Vanguard U.s. Value Factor ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $387,158!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,365,749!*
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See the 10 stocks »
*Stock Advisor returns as of September 22, 2026.
Ben Gran has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
