TILT vs VONV

TILTANorthern Trust Morningstar US Market Factor Tilt ETF

VONVAVanguard Russell 1000 Value ETF

In short

TILT TILT doesn't swap out the market, it bends it: roughly 1,900 US stocks with small-cap and value names weighted heavier than a pure market-cap index would have them. A 2011 original, at 0.25% net of a waiver through March 1, 2027.

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

TILT The Fund seeks results that generally correspond, before fees and expenses, to the price and yield performance of the Morningstar U.S. Market Factor Tilt Index.

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

• TILT Owns the market, then leans. No value sleeve, no stock-picking: the index keeps broad US exposure and simply overweights smaller and value names.sec.gov
• Reach down to the micro caps. The universe covers the top 99.5% of US market cap, so roughly 1,900 holdings span mega to tiny.flexshares.com
• Running since 2011, with a tracking record among the stronger implementations in its multifactor peer group.
• Billion-dollar fund with a single published index and quarterly distributions. Nothing to interpret.

• 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

• TILT You pay up for the tilt: 0.25% net of a waiver through March 1, 2027 (0.26% gross) versus VYM and ILCV at 0.04% and VONV at 0.06%, though each buys a narrower slice.
• Trading is thin next to the giant index names, so quoted spreads can be wider than the fund's size suggests.
• A tilt is a choice. Leaning small and value means stretches of looking different from the cap-weighted market, in either direction.sec.gov

• 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 TILT profile⁠

Full VONV profile⁠