No. of Recommendations: 7
VLUE is not a traditional value fund. VLUE follows the MSCI USA Enhanced Value Index that uses a complicated weighting scheme. VLUE has 23% of assets in MU. On top of that, VLUE does not replicate the index, but instead buys selectively. For example, VLUE does not own any Intel. All of this makes VLUE interesting, but not a typical value fund.
MSCI USA Enhanced Value Index
Top 10 constituents as of May 29, 2026
18.36% MICRON TECHNOLOGY
9.48% INTEL CORP
5.94% CISCO SYSTEMS
3.51% APPLIED MATERIALS
2.87% GENERAL MOTORS
2.22% VERIZON COMMUNICATIONS
2.12% QUALCOMM
2.01% AT&T
1.93% WESTERN DIGITAL
1.81% FORD MOTOR CO
data from
MSCI: MSCI USA Enhanced Value IndexiShares MSCI USA Value Factor ETF VLUE
Top 10 Holdings as of June 1, 2026
MU 23.02
CSCO 4.82
GM 3.44
VZ 2.85
T 2.53
F 2.20
QCOM 2.17
BAC 1.76
CMCSA 1.73
HPE 1.72
data from
ishares.com - Ishares msci USA value factor ETFOther value funds (VTV, DODGX, DFLVX) hold less MU:
Fund AUM[$B] Holdings Turnover MU_weight
VTV 238 325 8% 2.26%
DODGX 120 89 20% 0.00%
DFLVX 26 316 8% 2.54%
VLUE 15 155 30% 22.59%
Maybe VLUE is trying to amp its returns to get more AUM. Factor loadings from 2013 to May 2026 (HML) are similar for these "value" mutual funds and ETFs, but VLUE did better recently:
1yR 10yrCAGR Ticker Rm-Rf SMB HML MOM Alpha Annual Alpha R2 Name
27 12.4 VTV 0.87 -0.10 0.39 0.02 -0.02% -0.21% 94% Vanguard Value ETF
13 12.7 DODGX 0.96 -0.03 0.42 -0.12 0.00% 0.00% 94% Dodge&Cox Stock I
27 11.8 DFLVX 0.97 0.01 0.48 -0.05 -0.12% -1.40% 95% DFA US Large Cap Value I
95 15.4 VLUE 0.97 0.03 0.43 -0.09 -0.05% -0.66% 91% iShares MSCI USA Value Factor ETF
Much of VLUE's recent outperformance is from the MU overweighting. MU is up 1000% in the last year, and so any ETF overweight MU did well. Congratulations to VLUE for getting this home run, let's see if they can get the next one.
