For investors, it has been a swing between value and growth stocks for most of this year. As the focus turned back to value, Morningstar described the Vanguard Value Index Fund as “one of the best large-value funds available.” The independent fund rating company gave the fund a five-star rating and a gold analyst rating. It’s also among the top US gold-rated funds by Morningstar coverage that have beaten the S&P 500’s performance this year, according to the company. The Vanguard Value Index Fund is down about 7% this year – compared to the S&P 500, which has lost about 14%. Meanwhile, in August, value growth stocks outperformed their growth counterparts, according to Morningstar, with the Vanguard Value fund losing 2.68%, compared with the Vanguard Growth ETF down 5% . “The Vanguard Value Index’s diversified portfolio, low turnover and distinct cost advantages make it one of the best large-value funds available,” said Morningstar analyst Ryan Jackson. Overall, 52% of analysts are optimistic about the fund and rate it as a buy, according to FactSet. The fund has 344 members, and its top 10 holdings include Berkshire Hathaway, Johnson & Johnson, Exxon Mobil, and Pfizer. The fund focuses most on financial, healthcare, and industrial stocks. “Index buffers also promote diversification, as they allow stocks to float into growth territory and remain in the portfolio,” Jackson added. “The fund also diversified well on other levels. No sector accounted for more than 22% of the financial weighting, and the broad reach reduces risk specific to each company.” ‘Resist the urge to grow’ Investors flocked to stock valuations in the first half of 2022, as the market entered bear territory. Value names are those that typically trade at low multiples of the broader market and have stable fundamentals. However, during the recent summer rally, growth stocks – which include large tech stocks and are expected to rise at a faster rate than the rest of the market – have recovered. Goldman said in a note last week that it’s time to bet on value stocks. “Current relative valuations in the equity market imply that the Value factor should generate strong returns over the medium term,” said Goldman analyst Cormac Conners. Bank of America has also warned investors to “resist the urge to get Growthy.” “Investors seem tempted by quality/secular growth — perhaps because these are also stocks that have made money,” BofA analysts wrote in a September 9 note. for us over the past decade.” They add that in the later turns of the late cycle, value stocks tend to be rewarded, outperforming the benchmark index by 67%. BofA added: “Healthcare, energy and industry thrived during this period. According to FactSet, the consumer, healthcare, and industrial sectors in the S&P 500 posted their lowest losses ever, with declines of nearly 3%, 6.6% and 9%, respectively. according to FactSet. – Samantha Subin of CNBC contributed to this report.