Market timing is a loser's game. But choosing the right yardstick? That’s where the actual money is made. If you’ve spent any time looking at the Vanguard Value ETF (VTV), you’ve actually been looking at the CRSP US Large Cap Value Index. It’s the engine under the hood.
Most people just assume "Value" means boring companies that don’t grow. They think of rusty factories and slow-moving banks. Honestly, that's a mistake. The way the Center for Research in Security Prices (CRSP) builds this index is way more sophisticated than the old-school "just buy low P/E" strategy.
What Most Investors Get Wrong About the CRSP US Large Cap Value Index
You’ll hear "Value is dead" every time Tech stocks go on a tear. But the CRSP methodology doesn't just look at one or two numbers. It uses a multi-factor model. We're talking book-to-price, forward earnings-to-price, historical earnings-to-price, dividend-to-price, and sales-to-price.
It’s a five-factor screen. Most other indexes, like the Russell 1000 Value, are a bit more simplistic. Russell uses three factors. S&P uses three. CRSP goes deeper. This matters because it filters out the "value traps"—companies that look cheap but are actually just dying.
The Migration Secret
Here is something kinda cool that nobody talks about: Packeting.
When a stock starts growing too fast and begins to look like a "Growth" stock, CRSP doesn't just kick it out of the Value index overnight. That would cause massive, expensive trading for the funds tracking it. Instead, they move it in stages—usually 50% at one rebalance and 50% at the next. It’s a "smooth" transition. It keeps turnover low.
Vanguard’s VTV had a turnover rate of just 8.8% in 2024. Compare that to some active value funds where they’re churning 50% or 100% of the portfolio every year. That low turnover is a massive, silent contributor to your long-term returns because you aren't bleeding money to transaction costs.
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Who is actually in this thing?
As of early 2026, the index looks a lot different than it did a decade ago. It represents the top 85% of the US market cap but only the "value" half of that.
- Financials: This is the heavy hitter. Think JPMorgan Chase (JPM) and Berkshire Hathaway (BRK.B). They make up nearly 20% of the weight.
- Health Care: Big names like Johnson & Johnson (JNJ) and UnitedHealth Group (UNH) provide the stability.
- Industrials: Companies like Caterpillar (CAT) and Union Pacific (UNP).
- Tech (Wait, Tech?): Yes. This is the big surprise. Unlike the "Pure Value" indexes, the CRSP US Large Cap Value Index actually holds some tech.
Why tech? Because companies like Cisco (CSCO) or Broadcom (AVGO) (depending on the quarter) often trade at reasonable enough multiples to qualify as value. It’s not just a dusty list of oil companies. Speaking of oil, Exxon Mobil (XOM) is usually in the top five holdings.
Performance: 2024 and 2025 Reality Check
If you stayed the course through 2024, you did well. The index returned roughly 25.15% that year. It wasn't quite the AI-fueled rocket ship that the Growth index was, but it was solid, dependable growth.
2025 was a bit more of a rollercoaster. The index started the year strong but saw a dip in April before recovering. By the end of 2025, the index was up about 28.9% for the year.
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Total Value Snapshot (as of Jan 2026):
The index level sits around 3,382.
The median market cap of the companies inside is a massive $146 billion.
It’s important to note—and I mean really look at—the dividend yield. In a world of 0% growth stocks, the CRSP value universe is currently yielding about 2.05%. It's not "retire on dividends" money for most, but it’s a nice cushion when the market gets shaky.
Why not just buy the S&P 500?
The S&P 500 is currently dominated by the "Magnificent Seven." If those seven stocks sneeze, the whole S&P catches a cold.
The CRSP US Large Cap Value Index is your insurance policy. It’s less concentrated. While the top 10 companies in the S&P 500 might make up 30%+ of the index, the top 10 here are closer to 20%. You're getting a more democratic slice of the American economy.
The Nerd Stuff: Methodology Differences
If you’re a real index geek, you’ll notice that Russell and CRSP disagree on what "Value" is. Russell 1000 Value often excludes some of the biggest tech names entirely. CRSP is more inclusive.
CRSP also uses "float-adjusted" market cap. This means they only count the shares actually available to the public, not shares held by founders or governments. It’s a more "real-world" way of measuring how much a company is worth to an investor like you.
| Feature | CRSP US Large Cap Value | Russell 1000 Value |
|---|---|---|
| Factors | 5 (Multi-factor) | 3 (Simple) |
| Transition | Quarterly Packeting | Annual Reconstitution |
| Top Holding | JPMorgan / Berkshire | Often Utilities / Energy |
| Turnover | Extremely Low | Moderate |
How to actually use this information
Don't just stare at the chart. If you want to put this to work, here is how most people play it:
- The Core-Satellite Approach: Use a total market fund for 80% of your money, and then use a fund tracking the CRSP US Large Cap Value Index (like VTV) for the other 20% to "tilt" your portfolio toward cheaper, dividend-paying stocks.
- Rebalancing Tool: When growth stocks (like Nvidia or Apple) get too expensive, you sell a little bit of them and buy more of the Value index. This is the classic "buy low, sell high" move that most people are too scared to do.
Is it right for you?
Probably. But it depends on your stomach. Value stocks can underperform for years. Seriously. Between 2010 and 2020, Value was basically the neighborhood kid who couldn't catch a ball.
But when inflation stays sticky or interest rates don't drop as fast as people hope, Value usually shines. It’s for the investor who wants to sleep at night. You aren't going to wake up and find that JPMorgan has gone to zero. You might find that a speculative AI startup has, though.
Actionable Next Steps
- Check your overlap. If you own the S&P 500 and a "Total Market" fund, you already own a lot of these stocks. Don't double up unless you specifically want more exposure to financials and healthcare.
- Look at the Expense Ratio. If you’re buying an ETF that tracks this index, never pay more than 0.10%. Vanguard’s VTV is at 0.04%. Anything higher is just lighting money on fire.
- Watch the Rebalance. Keep an eye on the March, June, September, and December rebalancing dates. This is when the "Packeting" happens. If a big tech name falls into Value territory, that’s when the index will start buying it.
- Set a Yield Target. If you need income, compare the yield of the CRSP US Large Cap Value Index to 10-year Treasuries. If the index yield is rising, it’s often a signal that the stocks are becoming "cheap" relative to bonds.
The CRSP US Large Cap Value Index isn't flashy. It doesn't make headlines on TikTok. But for the institutional guys and the "Bogleheads," it’s one of the most respected ways to capture the value premium without the headache of picking individual stocks. It's basically the "slow and steady" that actually wins the race.