Want to Invest in Top Growth Stocks Like Amazon, Apple, and Microsoft but Avoid Nvidia? Consider This Low-Cost Vanguard ETF That’s Up 24.8% This Year.
Investors who want to avoid Nvidia (NASDAQ:NVDA) but put capital to work in growth-focused, exchange-traded funds (ETFs) face a difficult challenge. Nvidia is an integral part of index funds and exchange-traded funds (ETFs) — as the second-largest S&P 500 (SNPINDEX:^GSPC) and Nasdaq Composite (NASDAQINDEX:^IXIC) holding behind Apple (NASDAQ:AAPL). Nvidia also joined the Dow Jones Industrial Average (DJINDICES:^DJI) in 2024. And Nvidia carries an especially high weighting in many growth ETFs and tech sector ETFs.
However, there is a unique low-cost Vanguard ETF that doesn’t own Nvidia yet still holds Amazon (NASDAQ:AMZN), Apple, and Microsoft (NASDAQ:MSFT) as its top three holdings.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
A value ETF for the modern market
The Vanguard Russell 1000 Value ETF (NASDAQ:VONV) is a modern take on value stocks. While the Vanguard Growth ETF, Vanguard S&P 500 Growth ETF, and Vanguard Mega Cap Growth ETF label most major tech-focused companies as growth stocks, the Vanguard Russell 1000 Value ETF takes a nuanced approach.
The Russell 1000 is the 1,000 largest U.S. listed companies by market cap. It includes smaller large-cap and mid-cap stocks, whereas the S&P 500 just has large-cap stocks.
FTSE Russell, a subsidiary of the London Stock Exchange Group, has a semi-annual reconstitution whereby it roughly splits the market cap weighting of the Russell 1000 into two indexes — the Russell 1000 Value Index (which the Vanguard Russell 1000 Value ETF tracks) and the Russell 1000 Growth Index — which is mirrored by the Vanguard Russell 1000 Growth ETF. If FTSE Russell categorized all tech-focused companies as growth stocks, then the growth index would have a far higher market cap than the value index. So instead, FTSE Russell categorizes some established companies that were formerly high-octane growth stocks as value stocks, like Amazon, which is in the value index and not the growth index. Some stocks have their market caps split between both indexes. For example, Apple and Microsoft are top holdings in both indexes, whereas Nvidia, Alphabet, Broadcom, Meta Platforms, and Tesla — among other names — are solely in the growth index.
As a result, the Russell 1000 Value ETF’s three largest holdings are Amazon, Apple, and Microsoft — which make up a combined 17.4% of the ETF as of Sept. 30. Normally, Apple and Microsoft would have higher weightings than Amazon because they have higher market caps. But since all of Amazon’s market cap is weighted exclusively by the value index while Apple and Microsoft are split, Amazon is actually the largest individual holding in the Russell 1000 Value ETF.
Other top holdings in the ETF are more traditional value stocks like Berkshire Hathaway, JPMorgan Chase, ExxonMobil, Johnson & Johnson, Intel, AbbVie, and Cisco Systems — although I wouldn’t be surprised if Intel and Cisco join the growth index during the next rebalancing.
The Vanguard Russell 1000 Value ETF has a 21.6 price-to-earnings (P/E) ratio and 1.5% dividend yield, making it less expensive and more income-focused than the Vanguard S&P 500 ETF — which has a 24 P/E and 1.1% yield. The Vanguard Russell 1000 Value ETF has a dirt cheap fee structure — charging a mere 0.06% expense ratio, or $6 for every $10,000 invested. The ETF has crushed the S&P 500 year to date, driven by strong performance in key value-focused sectors such as energy, consumer staples, and healthcare, and the ETF’s lower exposure to the semiconductor industry relative to the S&P 500.
The Vanguard Russell 1000 Value ETF is a top buy now
The Vanguard Russell 1000 Value ETF is a great buy for investors who view Amazon as an established cloud computing and retail giant, Apple as a modern-day consumer staple, and Microsoft as a balanced technology conglomerate with a clear runway for moderate earnings appreciation and a growing dividend. Even with these names, the ETF is more value-focused than the S&P 500. The ETF’s 19.5% weighting in the technology sector makes it a nice middle ground between a more growth-focused index like the S&P 500 and traditional value ETFs that will exclude giant tech stocks like Apple and Microsoft.
All told, the Vanguard Russell 1000 Value ETF is the ideal fit for investors who want to buy an ETF with leading growth stocks but who are also satisfied with their existing Nvidia holdings or want to avoid the stock altogether.
Should you buy stock in Vanguard Scottsdale Funds – Vanguard Russell 1000 Value ETF right now?
Before you buy stock in Vanguard Scottsdale Funds – Vanguard Russell 1000 Value 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 Scottsdale Funds – Vanguard Russell 1000 Value 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 $335,171!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,000,640!*
Now, it’s worth noting Stock Advisor’s total average return is 823% — a market-crushing outperformance compared to 208% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
JPMorgan Chase is an advertising partner of Motley Fool Money. Daniel Foelber has positions in Broadcom and Nvidia. The Motley Fool has positions in and recommends AbbVie, Amazon, Apple, Berkshire Hathaway, Broadcom, Cisco Systems, Intel, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Tesla, Vanguard Morningstar Growth ETF, and Vanguard S&P 500 ETF. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
Despite a few periods of short-lived volatility, 2026 has shaped up as another banner year for the stock market. The ageless Dow Jones Industrial Average (^DJI +0.10%), benchmark S&P 500 (^GSPC -0.40%), and innovation-powered Nasdaq Composite (^IXIC -0.91%) have reached several record highs, courtesy of the artificial intelligence (AI) infrastructure build-out. While history decisively shows
The past few months haven’t been pretty for semiconductor stocks, as evidenced by the 12% decline in the PHLX Semiconductor Sector index over the past three months. Even Advanced Micro Devices (AMD -8.75%) has been caught up in this vortex, experiencing significant volatility amid concerns about the sustainability of artificial intelligence (AI) infrastructure spending, which
The Vanguard FTSE Developed Markets ETF (VEA +0.01%), Vanguard FTSE Emerging Markets ETF (VWO -0.09%), iShares Core MSCI EAFE ETF (IEFA +0.13%), iShares MSCI Emerging Markets ETF (EEM -0.36%), and Vanguard Total International Stock ETF (VXUS -0.02%) all enable investors to add some international exposure to their portfolio. However, that doesn’t mean these funds are
Three real estate investment trusts, or REITs, reported third-quarter results recently, and the results looked strong across the board. Realty Income (O -0.74%), Empire State Realty Trust (ESRT +1.53%) and Ryman Hospitality Properties (RHP -1.04%) own very different kinds of real estate, and all three raised their full-year guidance. I own all three of these
Mr. Market was a fictional character created by Benjamin Graham, the man who helped to train Warren Buffett. The stock market’s response to the mid-term election results is almost the perfect example of how Mr. Market works in the real world. And all you need to see to understand is two days of performance of
Jensen Huang lost his job, but not his stock. Soon, investors may not be able to see him sell it. Nvidia’s (NVDA) board accepted Huang’s resignation on Nov. 11. He walks away from about $108 million in unvested stock awards, pocket change next to the roughly 812 million shares he keeps, worth about $132 billion
Elon Musk-led publicly traded corporations, Tesla (NASDAQ:TSLA) and Space Exploration Technologies (NASDAQ:SPCX), remain volatile. In the days following the U.S. midterm election, they shed a combined $420 billion in market value. Both companies recovered most of these losses and are now back around their pre-election levels, but this recent episode highlighted the extent to which
Image source: Getty Images Not many UK income stocks have grown their dividend per share every year for half a century. But some have – and one member of that elite group is James Halstead (LSE: JHD), a long-established manufacturer and distributor of floor coverings. A clear guide to Anthropic’s IPO (without the hype) A
For the better part of the last four years, no trend has captured the attention and capital of investors quite like the evolution of artificial intelligence (AI). Empowering software and systems with the tools to make split-second, autonomous decisions is a $22.5 trillion global addressable opportunity through 2031, according to IDC. Nvidia (NVDA -2.01%) is
The VanEck Semiconductor ETF (SMH -2.99%) trades near $502 as of this writing. The chip fund’s record close was $668.91, set on June 22, leaving it about 25% off that peak. And a big part of the drop came on Nov. 5, when the fund fell 11% in one session — its worst day since
Jensen Huang, who co-founded Nvidia (NVDA -2.01%) over three decades ago at a Denny’s restaurant, is officially out as CEO of the artificial intelligence (AI) chip giant. Multiple reports about multiple alleged extramarital affairs Huang had, one with a woman who may have been a Chinese spy and others with as many as two Nvidia
Market Musings 141126: Improving returns at lower risk with simple timing models Even for long-term, patient stock market investors, there comes a point when the stock market falls by a certain percentage, let’s say 5% or 10%, where the question of reducing risk or staying fully invested should be asked. In this latest September-October stock
With investors in the two chipmakers holding nearly 7 trillion won in outstanding credit loans, or 27.2 percent of the total across the Kospi and Kosdaq, concerns have grown over broader market volatility. SK hynix headquarters in Icheon, Gyeonggi, on Oct. 28NEWS1 More than one-fourth of credit loans in Korea’s stock market are concentrated in just
Just over a week ago, “The Big Short” investor Michael Burry pulled most of his chips off a winning Caterpillar bet. He cut those puts by 75% after they roughly quadrupled. Then Nvidia’s leadership turmoil gave him reason to press his other bearish bets. In a Substack post on Thursday, Burry said he doubled his
Global platforms like Alibaba Group (BABA +0.02%) and Uber Technologies (UBER +0.83%) dominate their respective markets through massive scale. Choosing between these giants requires weighing deep value in Asia against high-growth mobility services. Collapse BABA & UBER: Performance Comparison Key Financial Metrics BABA – Alibaba Group $94.38 +0.02% (+$0.02) UBER – Uber Technologies $69.69 +0.83%
Another round of 13Fs has landed, and I figured Jim Simons’ old firm would be a tough act to follow. Renaissance Technologies nearly dumped its entire Nvidia (NVDA) stake while disclosing $2.24 billion in combined Micron Technologies (MU) and SpaceX holdings (SPCX). Then I opened George Soros’ firm’s filing. One share count made me go
AMD outperformed Nvidia by 53.2 percentage points over five trading days, according to The Kobeissi Letter. That is the widest gap between the two chipmakers since Nvidia went public in January 1999. That lead met its first test on Friday, when AMD stock fell 8.75%. Nvidia’s November 17 earnings report now sets up the next
The major stock market indexes have gone nowhere since early August. On the surface, the seas have been calm. Underneath, plenty of turbulence has been occurring. Most of the volatility has been within sectors. In mid-September, we warned our readers to proceed with caution through the midterm elections. We expected and are now seeing buying
Telechips Inc. (KOSDAQ:054450), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the KOSDAQ. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. Less-covered, small caps
CoreWeave (CRWV -6.13%) just delivered another impressive quarter. Revenue surged 168% year over year to $3.7 billion, its customer backlog reached $132.5 billion, and management raised its full-year guidance. Yet the company still reported a net loss of $709 million. For investors, this creates an interesting dilemma. CoreWeave is becoming an increasingly important player in
