Value Growth or Blend ETF: Which Strategy to Choose?

When investing in the stock market, it's essential to understand the investment style of a Value, Growth, or Blend ETF: Which strategy should you choose? In this article, I've summarized the three ways to invest your money.

⚠️ This article is not investment advice. The returns shown in this article are past results and are not a guarantee of future performance. Investing may result in financial loss.

Value Growth or Blend ETF: Which Strategy to Choose?

The summary of Value, Growth and Blend according to artificial intelligence

• Actions of type value (value) are generally undervalued compared to their intrinsic value, which means they are often traded at a discount to their actual value.

• On the other hand, actions growth (growth) focus on companies that have high growth potential, expecting their value to increase significantly in the future, even though they are currently valued at higher prices.

• Between these two categories, the style blend combines elements of value and growth, allowing investors to balance their portfolio by including stocks that exhibit characteristics of both types.

Now, let's expand on each type of investment with examples:

A Value ETF (example)

👉 In a Value ETF, the investor's goal is to buy stocks that are "expected" to increase in value in the future..

In summary, these are stocks that are “possibly” undervalued compared to their real value and “should” increase in value in the future.

An example of a Value ETF is Vanguard's VTV.

In fact, the VTV ETF has a portfolio of US stocks that promote the increase in stock value.

Let's analyze the top 5 stocks in the VTV portfolio (at the time of writing).

1. Berkshire – 3.45%
2. JPMorgan – 3.30%
3. Exxon – 2.17%
4. Broadcom – 2.06%
5. United Health – 1.93%

Let's analyze the performance according to the zonebourse website. Between March 2020 and March 2025.

• 80% 5-year performance

It's a good performance! Although not exceptional.

A Growth ETF (example)

👉 With a Growth ETF, the goal is for the ETF to favor stocks with good capital growth capacity.

In short, the ETF invests only in stocks with high growth potential, regardless of the current stock price.

An example of a Growth ETF is Vanguard's VUG ETF.

Indeed, the VUG ETF focuses on US stocks with great stock market growth potential.

Let's analyze the top 5 stocks in the VUG portfolio (at the time of writing).

1. Apple – 13%
2. Microsoft – 10.5%
3. NVIDIA – 10.4%
4. Amazon – 7%
5. Facebook – 5.22%

Let's analyze the performance according to the zonebourse website. Between March 2020 and March 2025.

• 132% in 5 years

This is a remarkable performance!

Performance ETF Growth VS ETF Value (example)

Now, to give an example, let's analyze the stock performance comparison between VTV (Value ETF) and VUG (Growth ETF). Between March 2020 and March 2025.

In blue = VTV / In black = VUG

• ETF VUG (Growth) = 132% in 5 years / 18.98% annualized return (according to Vanguard website)
• ETF VTV (Value) = 80% in 5 years / 13,94% annualized return (according to Vanguard website)

In this case, if we analyze the past performance, we conclude that the VUG Growth ETF is approximately 42% better performing compared to the VTV Value ETF!

On the other hand, although the VUG ETF performed better, we conclude that a Growth ETF is more volatile compared to a Value ETF. Therefore, large price fluctuations are to be expected with a growth ETF.

A Blend type ETF (example)

👉 In reality, a Blend ETF is halfway between the Growth and Value stock market strategies.

That is, a Blend ETF tries to have a balance between stocks with high potential for market growth and undervalued stocks that “should” increase in value.

A well-known blended ETF is the VOO ETF from Vanguard.

In fact, the VOO ETF replicates the performance of the top 500 US stocks! That is, the SP500 stock index.

Let's analyze the top 5 stocks in the VOO portfolio (at the time of writing).

1. Apple – 7.2%
2. NVIDIA – 6%
3. Microsoft – 5.8%
4. Amazon – 3.9%
5. Facebook – 2.8%

👉 Actually, as I write this article, The top 5 of the VOO ETF is the same as that of the VUG ETF. What changes are the percentages invested.

By the way, the first Value stock in VOO's portfolio is Berkshire, which is in seventh position in VOO's portfolio. With only 1.87% in the portfolio (as of the day I'm writing this article).

Let's analyze the performance of the VOO ETF according to the zonebourse website. Between March 2020 and March 2025.

• 108% in 5 years

This is a very good performance!

Performance ETF Growth VS ETF Value VS ETF Blend (example)

Now, to give an example, let's analyze the stock market performance comparison between the VTV (Value) ETF, the VUG (Growth) ETF, and the VOO (Blend) ETF.. Between March 2020 and March 2025.

In blue = VOO / In black = VUG / In red = VTV

• VOO (Blend) – 108% in 5 years / 16.8% annualized return (according to the Vanguard website)
• VUG (Growth) – 132% in 5 years / 18,98% annualized return (according to Vanguard website)
• VTV (Value) – 80% in 5 years / 13,94% annualized return (according to Vanguard website)

Therefore, if we analyze the last 5 years before March 2025, here is the order of stock market growth by investment style:

1. Growth (VUG)
2. Blend (VOO)
3. Value (VTV)

⚠️ Fluctuation of a Growth ETF

👉 We find that the performance of a Growth ETF, based on US stocks, has an incredibly high past performance 😉

On the other hand, it is important to understand the high performance volatility of a Growth ETF. Indeed, we note that during periods of stock market depression or stock market rise, A Growth ETF varies in value more than Blend or Value ETFs.

Don't forget the number of shares in the ETF

Note that in this article, if the VUG ETF is the ETF with the most market fluctuations in this comparison, it's not just a question of stock market strategy.

👉 In reality, it is also because it is the ETF that owns the fewest shares.

AND F	Number of shares
VUG (Growth)	180
VOO (Blend)	500
VTV (Value)	340

Actually, it's math.

🔍 The number of shares in an ETF influences the price of the ETF.

👉 This is because the fewer stocks there are in an ETF, the more the performance of an individual stock affects the price of the ETF.

Conversely, the more stocks an ETF contains, the automatically lower the percentage of each stock in the ETF's portfolio.

Therefore, as a general rule, the more stocks an ETF has, the more stable the performance and volatility of its portfolio. This is not a guarantee!

Comparison between 2 ETFs with a very similar portfolio

For this example, I compared the performance of two Large Growth ETFs: the VUG ETF and the VOOG ETF.

Looking at the stocks in the stock portfolios of both ETFs, I noticed that the portfolios of each ETF are very similar. In fact, both ETFs invest in almost the same U.S. growth stocks.

For example, if we analyze the top 10 stocks of the VOOG ETF and the VUG ETF (at the time of writing).

We conclude that 8 out of 10 stocks are the same in both ETFs.

The fact that the 2 ETFs invest mainly in the same stocks automatically means their performances are similar.

In green = VOOG / In black = VUG

👉 The big difference between the two ETFs, however, is that the VOOG ETF holds about 30 more stocks.

AND F	Number of shares
VUG (Growth)	180
VOOG (Growth)	209

In this case, because the VOOG ETF has more stocks, each stock represents a lower percentage in the portfolio.

Let's note with the percentage of the TOP 5 actions of each strategy 😉

VOOG

1. NVIDIA – 11.88%
2. Apple – 6.52%
3. Microsoft – 5.95%
4. Facebook – 5.65%
5. Amazon – 4.47

VUG

1. Apple – 13%
2. Microsoft – 10.57%
3. NVIDIA – 10.40%
4. Amazon – 7.19%
5. Facebook – 5.22%

Therefore, it makes sense. When the VOOG strategy loses value, it has less impact compared to the VUG ETF, because having a large number of stocks balances out the performance.

On the other hand, when the stock market rises, the VUG ETF increases faster because the major stocks weigh more heavily in the ETF's performance. This is visible in the comparative chart of the two ETFs.

In green = VOOG / In black = VUG

More actions do not necessarily equal less performance

🔍 On the other hand, note that a high number of shares does not necessarily mean a loss of performance. In the example of this article for example, the VOO ETF with 500 shares performed better than the VTV ETF with "only" 340 actions!

In blue = VOO / In red = VTV

How do you know if an ETF is Growth, Blend or Value?

👉 The safest way is to go to the ETF website.

Some investment funds are very transparent about the ETF's investment style from their official website page!

For example, in each Vanguard ETF, there is a simple to understand diagram to know if the ETF is growth, blend or value 😊

Example ETF VALUE (VTV)

Example ETF Growth (VOOG)

On the other hand, on other ETF sites like iShares or UBS for example, it is less visual and less easy to understand the ETF's investment style.

iShares Russell 1000 Growth ETF

How to analyze the best Growth, Blend or Value ETFs?

👉 With an ETF screener. That is, an ETF comparator.

I wrote an article regarding my favorite ETF screener right now, so how to use it. This is the ETF screener of stock analysis.

In reality, with the stock analysis ETF screener, you simply choose the investment category. For example:

• Large Blend
• Large Growth
• Mid-cap Value
• Large Value
• Mid-Cap Blend

Then, just add the filters that are important to the investor.

Why am I being offered a mega cap, large cap, mid cap or small cap ETF?

In reality, stock market experts like to categorize a stock according to the size of its market capitalization.

In simpler terms, each stock, based on its share price and a precise calculation, is placed in an investment category. The most well-known are:

• Mega Cap
• Large Cap
• Mid Cap
• Small Cap

In my opinion, regarding stock market investment based on market capitalization, there are only two things to remember:

• Micro-Cap, Small-Cap & Mid-Cap = Less than 10 billion USD
• Large Cap & Mega Cap = More than 10 billion USD

🔍 Therefore, a large or mega cap stock will have a market capitalization greater than USD 10 billion.

In my opinion (not investment advice), regarding a stock market investment over 10 years. I do not invest in Mid-Cap or Small-Cap. In fact, I only invest in large cap or mega cap (American stocks).

However, every investor will have a different opinion on this topic!

Market capitalization in the USA and in another country?

👉 It should be noted that my previous chapter, concerning market capitalization, concerns only US stocks ⚠️

For example, in France and Europe, experts will not categorize a European stock according to the same market capitalization criteria as an American stock.

For example, a European stock with a market capitalization of 1 billion Euros will be considered:

• Small-Cap in the USA
• Large-Cap in Europe

Although this difference may seem absurd at first glance, it is very simple to explain.

In Europe, according to artificial intelligence, at the time of writing, there are only 7 European stocks with a market capitalization of more than $200 billion.

While in the US, as I write these lines, there are more than 40 US stocks with a market capitalization exceeding 200 billion dollars.

Therefore, it makes sense not to classify European and US stocks in the same category. Otherwise, we would end up with a European Mega Cap ETF with very few stocks.

Conclusion

🔍 There are 3 styles of investing via an ETF:

• Value = To buy “undervalued” stocks that “should” increase in value
• Growth = Buy only stocks that have high stock market growth potential
• Blend = A mix between Value and Growth strategy

With a long-term stock market investment based on results before 2024, the performance is:

1. Growth
2. Blend
3. Value

⚠️ However, it should be noted that investing in a Growth ETF means accepting significant price fluctuations! Especially if the Growth ETF holds few shares!

👉 In fact, we must also remember that the number of shares in an ETF influences the price and price volatility!

In fact, the more stocks there are in a diversified ETF, the more the ETF tends to stabilize performance!

👉 One aspect to complete in an investment style is knowing the size of the invested shares. In my opinion, the main trick to know is:

• Large Cap & Mega Cap = + 10 billion USD
• Small Cap & Mid Cap = – than 10 billion USD

In my opinion, which is not investment advice, it is preferable to invest in large or mega-cap stocks to increase the chances of long-term stock market growth.

On the other hand, it is important to note that "Large cap"in the USA is not the same"Large Cap” than in Europe. In reality, European stocks require a lower capitalization to be considered large cap.

Value Growth or Blend ETF: Which Strategy to Choose?

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Value Growth or Blend ETF: Which Strategy to Choose?

Value Growth or Blend ETF: Which Strategy to Choose?