IVA QUICK TAKE | Vanguard’s Newest ETFs Ask a Familiar Question: Growth or Value?

Two new ETFs make it easier to tilt your international portfolio—but history shows that picking the winning style is harder than it sounds.

Vanguard is finally exporting the growth-versus-value debate.

After hitting snooze once, Vanguard has launched two new ETFs—Developed Markets ex-U.S. Growth Index ETF (VDG) and Developed Markets ex-U.S. Value Index ETF (VDV)—giving investors simple, low-cost tools to tilt their foreign stock exposure by style.

Let’s start with what’s easy. The new ETFs are cheap (0.08%), diversified and perfectly sensible building blocks.

But cost and convenience aren’t the issue. The real question is whether a growth or value tilt is worth making in the first place.

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