Key Points
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Value stocks like Micron, Broadcom, and Caterpillar are experiencing growth driven by AI advancements.
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As of July 31, SpaceX’s stock closed at $108.37, down 52% from its all-time high.
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The Vanguard Value ETF and the Vanguard High Dividend Yield ETF are both hovering around all-time highs and outperforming the S&P 500 and Nasdaq.
In the ongoing market rally, driven notably by Amazon and Microsoft, the Nasdaq Composite and S&P 500 are close to their all-time highs. As of late July, the Vanguard Value ETF (NYSEMKT: VTV) and Vanguard High Dividend Yield ETF (NYSEMKT: VYM) have shown strong performance, significantly outperforming the Vanguard Growth ETF, which has risen just 5% year-to-date. The Vanguard Value ETF exhibits a P/E ratio of 21.4 with a 1.9% yield, while the High Dividend Yield ETF shows a P/E of 21.6 and a 2.3% yield, both of which are attractive compared to the Vanguard S&P 500 ETF’s P/E of 27.5 and 1% yield.
SpaceX, currently down 52% from its peak, closed at $108.37, the lowest since its public listing. Despite its struggles, it remains part of nine Vanguard ETFs that continue purchasing shares even as the stock declines. In contrast, established companies like Micron and Broadcom continue to deliver real profits and positive earnings growth, distinguishing them from SpaceX’s speculative model.
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