What does it mean when two ETFs are both classified as Large Value funds?

Both DIVB and VTV are categorised as Large Value ETFs, meaning they primarily invest in shares of large companies that analysts consider to be trading below their perceived intrinsic value. This category typically focuses on stable, established firms with consistent earnings and often pays dividends. While both funds target this segment, their specific strategies differ; DIVB emphasises dividend yield potential, whereas VTV tracks a broader value index. Investors should note that 'large value' does not guarantee identical holdings or performance outcomes, as each fund uses its own methodology to select securities.

What are 'net assets' and why is the size difference between DIVB and VTV significant?

Net assets, or Assets Under Management (AUM), represent the total market value of the investments held by the fund. VTV has $191.1 billion in net assets, while DIVB has $2.0 billion. A larger fund like VTV often offers higher liquidity, meaning it is easier to buy or sell shares without significantly affecting the price, resulting in tighter bid-ask spreads. Conversely, the smaller size of DIVB could potentially lead to slightly less liquidity. Understanding fund size helps investors assess trading costs and ease of entry or exit from a position.

Why does it matter that both funds track an index that is 'not available'?

For educational transparency, it is important to note that the specific indices tracked by both DIVB and VTV are listed as 'not available' in this dataset. An index defines the rules for which stocks are included or excluded, such as criteria for 'value' or dividend consistency. Without access to the specific index methodology, investors cannot verify the exact selection criteria. This limits the ability to replicate the fund's performance or understand the precise risks taken. Investors should rely on the fund provider's official documentation for detailed index methodology.

How do the expense ratios of DIVB and VTV compare?

The expense ratio is the annual fee charged by the fund for management and operational costs, deducted from the fund's assets. VTV has an expense ratio of 0.03%, while DIVB has a ratio of 0.05%. This means that for every £10,000 invested, a DIVB investor would pay approximately £5 annually in fees, compared to £3 for a VTV investor. Although both fees are considered very low, the 0.02 percentage point difference can compound over time, impacting the net return an investor receives, all else being equal.

What does the dividend yield difference imply for income-focused investors?

DIVB offers a dividend yield of 2.22%, whereas VTV offers a yield of 1.85%. A higher yield suggests that DIVB is currently distributing more cash relative to its share price, which may appeal to investors prioritising regular income. However, yield is not guaranteed; it fluctuates with share price and corporate payout decisions. VTV's lower yield is modest compared to dedicated high-dividend funds but reflects a broad value strategy. Investors should consider that seeking higher yield might sometimes involve accepting different risk profiles or lower capital appreciation potential.

How do the top holdings of DIVB and VTV overlap?

Comparing the top 10 holdings reveals that both DIVB and VTV share several major positions, including JPM, XOM, JNJ, and ABBV. This overlap indicates that both funds have significant exposure to financials, energy, healthcare, and consumer staples sectors through these large-cap companies. However, DIVB also holds significant positions in IBM and ADP, while VTV features MU and BRK.B. The presence of shared top holdings suggests similar market biases, but the distinct unique holdings contribute to differing risk-return characteristics and sector weights between the two funds.

What is the impact of inception date differences between DIVB and VTV?

VTV was established in January 2004, providing a long track record of over 20 years for investors to assess its performance through various market cycles. In contrast, DIVB was launched in November 2017, offering a much shorter historical data set. While DIVB's shorter history may limit long-term performance comparisons, it reflects a more recent strategic focus on dividend growth within the large-cap value universe. Investors often weigh a longer track record for consistency evidence against newer funds that may target specific emerging trends or strategies more effectively.

How do the top holdings affect concentration risk in each fund?

Concentration risk refers to the potential impact of a single stock's poor performance on the overall fund. In DIVB, the top two holdings, IBM and ADP, each exceed 4.8% of the fund's assets. This indicates a higher concentration in these specific names compared to a broad market fund. In VTV, the top holding, MU, is weighted at 3.94%, with JPM at 3.47%. While both funds hold significant positions in leading companies, the higher weightings in DIVB's top names mean its performance may be more sensitive to the specific fortunes of those individual corporations.

What sector exposure might investors expect from these Large Value funds?

Based on the top holdings, both DIVB and VTV exhibit significant exposure to traditional value sectors such as Financials (JPM), Energy (XOM, CVX), and Healthcare (JNJ, ABBV). The inclusion of Technology stocks like MU in VTV and IBM in DIVB shows that 'value' does not strictly exclude tech, but selects those considered undervalued. While specific sector weights are 'not available' in this dataset, the presence of these large-cap names suggests a bias toward mature, cash-flow-generative industries. Investors should review official fund documents for precise current sector allocations.

How do ETF distributions work for investors holding DIVB or VTV?

Both DIVB and VTV are exchange-traded funds that typically distribute income, such as dividends from underlying stocks, to shareholders. These distributions are usually paid quarterly. Investors do not receive the individual dividends from companies like IBM or JPM directly; instead, the fund collects them and passes the net amount to shareholders, often after deducting expenses. This simplifies tax reporting and income management. The stated yields (2.22% for DIVB, 1.85% for VTV) reflect the recent annual distributions relative to the share price, offering an indication of cash flow potential.

Which investing goal is each fund typically associated with?

DIVB is often associated with income-focused investors who prioritise a higher dividend yield (2.22%) within a large-cap value framework. VTV is typically suited for core portfolio allocations where broad exposure to large-cap value stocks is desired, with emphasis on very low costs (0.03%) and high liquidity ($191.1 billion net assets). While neither fund is recommended for sale, understanding these primary attributes helps align each ETF's characteristics with different investor preferences, such as maximising immediate cash flow versus minimising fees and ensuring ease of trading.

Is this comparison page financial advice?

No, this content is for educational purposes only and does not constitute financial advice, investment recommendations, or a call to action. Comparing ETF metrics like expense ratios, yields, and holdings helps investors understand product features but does not predict future performance. Investing involves risks, including the potential loss of principal. Figures are based on data fetched on 2026-09-22 and may change. Investors should conduct their own due diligence, consider their personal financial situation, and consult with a qualified financial advisor before making any investment decisions.

DIVB vs VTV

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare the iShares Core Dividend ETF and the Vanguard Value ETF by examining their fees, holdings and dividend yields. Both focus on large value stocks, but they differ in expense ratios and net assets. This page reviews how each fund tracks its market segment, with an expense ratio of 0.05% for DIVB versus 0.03% for VTV. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

DIVB

Metric

VTV

0.05%

Expense Ratio

0.03%

2.22%

Dividend Yield

1.85%

$2.04B

Net Assets

$191.07B

384

Holdings

319

Nov 7, 2017

Inception Date

Jan 26, 2004

–

Index Tracked

–

Large Value

Fund Category

Large Value

VTV costs about $2.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	DIVB	VTV
JPMJPMorgan Chase & Co.	2.60%	3.47%
XOMExxonMobil Holdings Corporation	2.55%	2.43%
JNJJohnson & Johnson	2.13%	2.33%
ABBVAbbVie Inc.	1.84%	1.65%

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Investment Analysis

DIVB

Pros

iShares Dividend Growth ETF offers a competitive dividend yield of 2.22 per cent, attractive for income-focused investors.
The fund features a low expense ratio of 0.05 per cent, keeping annual costs minimal for shareholders.
Established in November 2017, the fund provides access to large-cap value stocks with growth potential.

Considerations

With $2.0 billion in net assets, the fund is significantly smaller than many broad-based competitors, potentially affecting liquidity.
The fund tracks an index that is not available, making it harder for investors to assess the exact methodology.
Top holdings like IBM and ADP each exceed 4.8 per cent, indicating a higher concentration risk in specific names.

VTV

Pros

Vanguard Value ETF boasts a massive net asset value of $191.1 billion, ensuring high liquidity and tight spreads.
The expense ratio is exceptionally low at just 0.03 per cent, making it highly cost-effective for long-term holding.
Since its inception in January 2004, the fund has established a long track record as a core large-cap value investment.

Considerations

The dividend yield of 1.85 per cent is relatively modest compared to dedicated high-dividend focused ETFs.
Holdings data shows significant weights in companies like MU and JPM, which may introduce specific sector or stock idiosyncratic risks.
The fund tracks an index that is not available, limiting transparency regarding the precise selection criteria for value stocks.

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About DIVB and VTV

DIVB (DIVB)

iShares Core Dividend ETF (DIVB) is an exchange-traded fund that seeks to provide investors with exposure to a diversified portfolio of dividend-paying companies. It is designed for those looking for income and broad equity exposure in a single, tradeable instrument. The fund typically holds a mix of companies across sectors that historically pay dividends, aiming to smooth income streams compared with individual stocks. Investors should note that dividend payments are not guaranteed and can fluctuate with company earnings and economic conditions. As an ETF, DIVB offers intraday liquidity and may be more cost-effective and tax-efficient than holding multiple individual equities, though fees and tracking error can affect returns. Market capitalisation data for the ETF is not provided here. This summary is for general educational purposes only and is not personalised investment advice. Always consider your risk tolerance, investment horizon and seek independent advice if unsure, as values can rise or fall and past performance is not a reliable indicator of future results.

VTV (VTV)

The Vanguard Value ETF (VTV) is a large-cap value fund designed to track the performance of US large-capitalisation companies considered to have value characteristics. Launched in January 2004, it currently holds a diverse portfolio of 319 stocks. With a very low expense ratio of just 0.03%, it offers investors a cost-effective way to access established US companies that may be trading at lower prices relative to their fundamental metrics. The fund has accumulated net assets of approximately USD 191.07 billion, indicating significant liquidity and investor confidence. It currently provides a dividend yield of 1.85%. While value strategies can offer potential advantages during market rotations, like all investments, the value of shares can fall as well as rise, and returns are not guaranteed. This fund is generally suitable for investors seeking diversified exposure to the US large-cap value segment as part of a broader portfolio strategy.

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DIVB vs VTV

Fund Snapshot