Summary: Investors turning to dividend-paying ETFs for passive income, with Vanguard Mega Cap Value outperforming.

From Nasdaq: 2025-03-14 07:07:00

Investors are turning to dividend-paying stocks and ETFs for passive income, with value and income stocks outperforming growth stocks this year. The Vanguard Mega Cap Value ETF is up 0.5% and targets industry-leading stocks from value-focused sectors like finance and healthcare, making it a good buy for value investors.

The Mega Cap Value ETF has a lower valuation and higher yield than the S&P 500 ETF, yielding 2% with a 20.4 P/E ratio compared to the S&P 500’s 1.2% yield and 27.5 P/E ratio. While the Mega Cap Growth ETF has outperformed the S&P 500, the Mega Cap Value ETF may be a better fit for risk-averse investors.

With a 0.07% expense ratio and a minimum investment of $1, the Mega Cap Value ETF offers exposure to blue-chip names from value-focused sectors. It’s important to buy the ETF for the right reasons and not just because it’s outperforming the S&P 500. Consider your financial goals before investing.

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Read more at Nasdaq: Generate Passive Income From This Low-Cost Vanguard ETF That Is Crushing the S&P 500 in 2025