What is the difference between Vanguard value ETF and Vanguard Growth ETF?

I have always been fascinated about different value strategies and what they entail but I recently discovered that there are two strategies in ETFs that seem to share some similarities, the Vanguard Value ETF and the Vanguard Growth ETF.

Both focus on capital appreciation, the underlying asset. Yet, they have subtle differences that make a difference in determining if either are viable. So let's see how the two compare to one another:

Which has higher returns. Value or growth? Can you build and maintain portfolio of both in order to maximize returns? First, let's find out which has higher expected return. According to www.investorweb.au (), a simple search through all relevant value and growth value ETFs using the database from March 18th, 2025, reveals that only one has a higher average expected annual return than the other. But if we dig a little bit deeper (and take into account inflation for expected returns) and look at the expected rate of returns, the value ETF wins by only 1.5%.

The table below shows this: Value vs. Growth - Average Annual Expected Returns for Periods Ended December 31, 2025 5% difference may not sound significant yet let's analyze why this is an important number. Since the start of 2025, the S&P 500 EPU climbed by 23.64% Yet, the Vanguard Growth ETF only produced a 16.47% gain While the value ETF's higher gain appears higher on the surface, looking more closely, while it gained more, it didn't fare as well due to inflation. Since January 2025, US inflation has averaged 3.9%.

In the 12 months that the S&P 500 EPU outperformed the Vanguard Growth ETF by more than 4%, inflation had grown by 2. And that may be why the Growth ETF has managed to produce more performance.

The Vanguard FTSE Australia All Cap Value Index ETF is up 9.6% since January 2, 2025 - almost the same rate of return as the S&P 500 EPU.

Is Vanguard Growth ETF a good investment?

I'm a retired financial advisor and author of two books on investments.

If you want to know which funds are best, I can't be any better teacher than Mr. Just remember: you're trading for "insurmountable" gains while trading from a higher time zone so what do you care? And if you think in terms of a time horizon like I do, all that really matters is that you enjoy a "normal" life on a "normal" income. (I've got this on tape.)

What's the best way to learn about stocks and investments? This is the easiest way I know. The best place to start is this: When we are not busy trying to grow our 401k balances a lot faster than I have been, we are watching Vanguard videos that we find informative and amusing. If you need me to pick some favorites, here are a few: I don't see the wisdom in paying to read this kind of stuff (it costs money just to buy one of these subscriptions and I am not saying you should buy it) but you can pick-up one free book at this Vanguard affiliate link: Now you're starting to come up with questions and comments along the lines of, "Hey - does it make sense to invest in "growth"?" And of course, the answer is, of course not! It makes even less sense than the usual garbage which we call "stocks", and what they "grow" is the market averages so in the end, all investors are buying into a stock market - just with a much smaller piece of the pie. It's really like the rest of America's diet where I was raised to believe if we are getting fat then one way to change the situation is to take a nap in bed and eat something healthy instead of a Snickers or a Quarter Pounder.

What is VGRO invested in?

VGRO invested in the following entities, as at the end of day on 19 June 2020: VGRO's investment portfolio (in billions) (previous year). The number and value of assets held by VGRO at the end of day on 19 June 2020: Asset. '000. Number of shareholders. Current market value. Total consideration. Equity. (0.4) Investment management and other reserves. (0.2) (0.0) Corporate and business. Other holdings. (2.7) 5

VGRO's capitalisation (in '000's). The amount of capital a company has paid for it's own shares (also known as subscribed capital or paid-up capital) expressed as a percentage of the current market value (current share value) at the close of day (19 June 2020). This measure is the best gauge of an organisation's financial strength and stability. The table below shows the breakdown of capitalisation by source of finance:

Funding type. Capitalisation (per cent). Debt. 0

%
0

%
Capitalisation (per cent).
The table below is based on data provided by the company, this includes their total cash, bank borrowings and finance received from the sale of ordinary shares and preference shares. Please refer to their most recent audited annual report to find out how the funds were raised.