3 Value ETFs Head to Head. One Charges 0.03% and Returned 19% Over the Past Year

Three large-cap value funds share the same general playbook but landed in very different places over the past year, and the gap comes down to decisions buried inside their indexes that most investors never think to check.

The ETF Examiner desk. Editor: Ryne Mauck.

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Vanguard Morningstar Value ETF (NYSEARCA:VTV) charged the lowest fee of the three large-cap value funds compared here and also posted the highest return. From October 3, 2025 to October 5, 2026, VTV returned 19% with distributions reinvested. Over the same period, State Street SPDR Portfolio S&P 500 Value ETF (NYSEARCA:SPYV), and iShares S&P 500 Value ETF (NYSEARCA:IVE) both returned approximately 13%.

These numbers compare the three funds against each other over one time window. They say nothing about how any of them stack up against value funds in general or against any outside benchmark. That said, these three funds, built around the same general style, provided different results, and the reasons sit inside their indexes.

Vanguard’s fund history shows VTV now tracks the Morningstar US Large Cap Value Index. That index is the old CRSP benchmark under a new name. Morningstar bought CRSP and rebranded the CRSP Market Indexes as Morningstar Indexes. Vanguard says the fund’s objectives and day-to-day management did not change.

The index sorts stocks using five value factors. It also draws from a wider pool than the S&P 500, which gives VTV a different, larger holdings roster than the other two funds. VTV’s fee is 0.03%, per Vanguard’s April 2026 fact sheet. Over five years, the fund returned 78%.

One tradeoff comes with the new index provider. Morningstar applies its own style score and reconstitution schedule, so the stocks that count as value can shift over time even though Vanguard’s stated strategy stays the same. Income has held up. VTV paid $1.08 per share in each of its first two 2026 distributions and $1.02 in September.

State Street names the S&P 500 Value Index as SPYV’s benchmark and lists a gross expense ratio of 0.04%. With about $35.8 billion in assets, the fund is large enough for most investors to trade easily.

S&P measures value by how cheap a stock is relative to its book value, earnings, and sales, and it picks only from S&P 500 members. The result looks top-heavy for a value fund. In the June 30 filing, Apple (NASDAQ:AAPL | AAPL Price Prediction) was the largest holding at 7.3%, and Amazon (NASDAQ:AMZN) came next at 3.8%. After those two, weights fall to around 2% and below.

SPYV returned 72% over five years and 205% over ten. One megacap tech company’s results can move this value fund more than any bank or energy name it holds.

IVE follows the same S&P 500 Value Index as SPYV, so the two hold essentially the same stocks. Its prospectus, dated July 2026, lists a net expense ratio of 0.18%, the highest of the three.

Returns came out almost the same as SPYV’s, with 71% over five years and 202% over ten. IVE trailed its twin by a small margin in every period measured, which matches a higher fee on an identical portfolio. Its best case is for investors who already hold it in taxable accounts, where selling to switch funds could trigger capital gains that exceed the fee savings.

SPYV and IVE finished within a fraction of a point of each other, which is what two funds tracking one index should do. VTV’s lead was several points. A gap that wide between funds following the same style comes from how their indexes are built.

Three things drive it. The first is the definition of value. S&P uses three price ratios, while Morningstar’s index combines five factors, so a stock can be classified as value in one index and growth in the other. The second is the starting universe.

The S&P funds pick only from the 500, while VTV draws from a wider large-cap pool. The third is weighting. SPYV’s June filing put Apple and Amazon at the top, which gives the S&P pair a heavy tie to a couple of tech giants.

The cheapest fund also won this year, but that is a coincidence of timing. Index design produced VTV’s lead. VTV’s 0.03% fee versus IVE’s 0.18% is a cost you know before you buy, and it works in the investor’s favor every single year. A one-year return ranking is something you only see later, and it can flip the next year.

The fee advantage is reliable and adds up over decades. The return advantage is one observed result from a single 12-month window.

VTV has the lowest fee, the widest value definition, and Vanguard’s scale behind it. SPYV fits investors who specifically want the S&P 500’s version of value and are comfortable with Apple as the largest holding, at a fee that is still very low. IVE mainly makes sense for existing holders whose tax bill from switching would be larger than what they would save in fees. Whichever fund you choose, base the decision on cost and index design, because those carry forward year after year.

Contact [email protected] for any questions or corrections.

Ryne Mauck is an investment writer covering exchange-traded funds, retirement planning, and portfolio strategy. Through his work at 24/7 Wall St. and other investment platforms, including Seeking Alpha, he aims to provide clear, research-driven insights that help investors make more informed decisions while maintaining a long-term approach to investing.

Ryne holds a B.Sc. in Finance and an M.A. in Political Science. He is a formerly registered Municipal Advisor Representative and has passed the Series 50, Series 63, and Series 65 exams. His articles are not intended to be, nor should they be interpreted as, financial advice.

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