VV Handidly Beat the S&P 500, And Only Charges 0.04%

Most investors don’t need to choose between growth and value. They need exposure to both, rebalanced automatically, at a cost low enough that it doesn’t erode decades of compounding. That’s the exact role Vanguard Large-Cap Index Fund ETF Shares (NYSEARCA:VV) was built to fill.

VV tracks the CRSP U.S. Large Cap Index, providing exposure to over 400 of America’s largest companies through a single ticker. The fund’s 0.04% annual expense ratio—just $4 per $10,000 invested—combined with minimal 2% portfolio turnover means your returns compound with minimal friction from fees and taxes. This cost structure is critical for long-term wealth building, where every basis point matters over decades.

The portfolio spans growth and value automatically. Technology leads at 34.6% of assets, but you also get meaningful exposure to Financials, Healthcare, and Industrials without making active sector bets.

VV has delivered strong long-term performance, with an 86.22% return over five years that edges out the S&P 500’s 78.13% gain over the same period. That outperformance stems from the fund’s natural tilt toward mega-cap technology leaders that have driven market returns.

The portfolio’s largest positions—NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT)—combine for roughly 20.7% of assets. These companies represent the secular growth trends in AI, consumer technology, and cloud computing that have reshaped the large-cap landscape.

VV fits best as a core equity holding for investors who want broad U.S. large-cap exposure without making active bets. It works in retirement accounts, taxable portfolios, and as a foundation for satellite strategies.

The 1.06% dividend yield won’t replace income needs, but dividends have grown steadily. The fund’s dividend has grown from $2.02 per share in 2016 to $3.41 in 2025, representing a 69% increase over the period.

The tradeoffs are concentration and sector risk. The top 10 holdings represent roughly 37% of the fund, and tech’s one-third weighting means you’re heavily exposed to AI narratives, semiconductor cycles, and mega-cap valuations. If growth stocks underperform, VV will lag. Over the past month, pure value funds like Vanguard Value ETF (NYSEARCA:VTV) gained 6.38% while VV was essentially flat at -0.19%, illustrating how style rotations can create short-term divergence.

VV is a workhorse for investors who want the U.S. large-cap market, not a bet on it, with costs low enough to let compounding do its work over decades.