Vanguard Value Fund Outperforms Growth as Market Stalls

**Implied Volatility / Movement:** The iShares Russell 1000 Growth ETF (IWF) and its proxy, the Nasdaq 100, have seen stalled performance in 2026, with IWF near flat year-to-date and the Nasdaq 100 index up 17.7% driven by a narrow set of companies. This comes as the Russell 1000 Growth index has experienced a -0.8% return, contrasting with the broader S&P 500's 13.39% gain. In this environment, Vanguard's U.S. Value Factor ETF (VFVA) has emerged as a strong performer, returning 22% year-to-date through August 7, and 38.4% over the past year. This performance outpaces broader market indices and growth-focused ETFs, underscoring a shift in market leadership. Other value-oriented funds like the Vanguard Value ETF (VTV) and Schwab U.S. Dividend Equity ETF (SCHD) have also shown significant gains, with VTV up 18.69% and SCHD up 25.62% year-to-date, respectively. The divergence suggests that investors are finding returns in value-driven sectors rather than growth areas, despite positive earnings revisions for large-cap growth companies.

S&P 500: 7,758.10 +0.01% Dow Jones: 53,903.40 -0.24% Nasdaq 100: 29,685.20 -0.15% Russell 2000: 3,018.37 -0.54%