AI, Tech Fuel Rebound Of Vanguard Growth ETF, Eroding Value's 2022 Outperformance
Portfolio Pulse from Piero Cingari
The Vanguard Growth ETF (VUG) has outperformed the Vanguard Value ETF (VTV) by 29% in 2023, driven by a surge in AI and tech stocks. The growth style's recovery has erased value's 2022 outperformance, with major contributions from Apple, Microsoft, NVIDIA, Alphabet, Amazon, Tesla, and Meta Platforms.
June 01, 2023 | 4:57 pm
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NEGATIVE IMPACT
Vanguard Value ETF (VTV) has underperformed Vanguard Growth ETF (VUG) by 29% in 2023, struggling with a 3% decline year to date.
VTV has underperformed VUG due to the resurgence of growth stocks, particularly in the AI and tech sectors. As the Fed's tightening cycle nears its end, growth stocks are likely to continue outperforming value stocks, negatively impacting VTV in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Vanguard Growth ETF (VUG) has outperformed Vanguard Value ETF (VTV) by 29% in 2023, driven by a surge in AI and tech stocks.
The outperformance of VUG is due to the strong performance of AI and tech stocks, which have surged in recent weeks. This trend is likely to continue in the short term, as the Fed's tightening cycle nears its end and growth stocks regain their dominance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100