The
Vanguard U.S. Value Factor ETF aims to achieve long-term capital
appreciation by primarily investing in U.S. common stocks that
have the potential to generate higher returns compared to the broad
U.S. equity market. To identify such stocks, the fund uses a
quantitative model that evaluates securities based on their market
valuations relative to fundamentals like book value of equity and
earnings, as determined by the aadvisor.
The portfolio of the
fund consists of a diverse mix of companies representing multiple
market sectors and industry groups. The advisor constructs a U.S.
equity portfolio that aims to achieve exposure to securities with
lower prices relative to fundamental measures of value, subject to
reasonable constraints that foster portfolio diversification and
liquidity.
To identify securities with lower prices relative to
fundamental value, the advisor may use metrics such as book to price
and earnings to price ratios. Overall, the Vanguard U.S. Value Factor
ETF employs a systematic approach to investing in U.S. equities that
seeks to generate higher returns over the long term by targeting
undervalued stocks.
The
Vanguard U.S. Value Factor ETF aims to achieve long-term capital
appreciation by primarily investing in U.S. common stocks that
have the potential to generate higher returns compared to the broad
U.S. equity market. To identify such stocks, the fund uses a
quantitative model that evaluates securities based on their market
valuations relative to fundamentals like book value of equity and
earnings, as determined by the aadvisor.