BMVP vs VONV

BMVPCInvesco Bloomberg MVP Multi-factor ETF

VONVAVanguard Russell 1000 Value ETF

In short

BMVP Four factors (low volatility, momentum, profitability, value) packed into roughly 60 US stocks, tracking Bloomberg's MVP Index for 0.29% a year. A compact multi-factor blend from Invesco that almost nobody talks about.

VONV The plain-vanilla value trade, done cheap: about 900 large US value stocks, full replication of the Russell 1000 Value Index, 0.06% a year. No factor cocktail, no premium price tag, and one of the strongest implementations in its factor peer group.

Stated mandate

BMVP The Fund seeks to track the investment results of the Bloomberg MVP Index before fees and expenses.

VONV The fund seeks to track the Russell 1000 Value Index, representing large-capitalization value stocks in the United States. It uses passive indexing and full replication to remain closely aligned with that benchmark.

Why people hold it

• BMVP Four factors in one ticker: low volatility, momentum, profitability and value, blended inside the Bloomberg MVP Index instead of you stitching together four separate funds.
• 0.29% a year sits under the median fee in the multi-factor crowd, modest for a rules-based blend that does the mixing for you.
• Roughly 60 US stocks, so the factor tilts show up in the portfolio rather than getting watered down across hundreds of names. Distributions come quarterly.

• VONV 0.06% a year, a fraction of the typical fee among factor ETFs. On a rules-based value index there is little room for cleverness, so cost does most of the work.vanguard.com
• Full replication, not sampling: it owns the index's roughly 900 names and has stayed tightly aligned with the Russell 1000 Value benchmark since launching in 2010.
• Same Russell benchmark as pricier rivals for less: the Goldman MarketBeta version (GVUS) charges 0.12% to track the identical value index.
• A multi-billion-dollar fund that trades actively, among the easiest in its group to get in and out of, and it distributes quarterly.

Worth knowing

• BMVP Thinly traded and small by ETF standards, which typically means wider bid-ask spreads and more cost around the trade itself.
• Plain single-factor index funds cost far less: VYM at 0.04%, VONV at 0.06%. The extra fee here buys the four-factor recipe.
• It lands in the lower half of its multi-factor peer group, and how lightly it trades is the biggest drag on that standing.

• VONV One screen, one style. Value only, with no quality or momentum overlay, so the ride follows the value side of the market wherever it goes.vanguard.com
• This is the entire value bucket, not a best-ideas portfolio. About 900 holdings means results hug the large-cap value category rather than stray from it.
• Cheaper exists nearby: Vanguard's VYM charges 0.04%, but it screens for dividend yield, a different portfolio than a Russell value index.

Full BMVP profile⁠

Full VONV profile⁠