Vanguard Small Cap ETF (VB) is rated a buy, supported by attractive valuation, solid fundamentals, and a constructive long-term technical setup. VB has outperformed IJR and IWM but lagged SPY and VSS, highlighting mixed relative performance among small-cap benchmarks. Despite high volatility and macro risks, VB's 16.2x P/E, 1.5x PEG, and balanced value-growth mix offer compelling diversification.
Looking for broad exposure to the Small Cap Blend segment of the US equity market? You should consider the Vanguard Small-Cap ETF (VB), a passively managed exchange traded fund launched on January 26, 2004.
I rate the Vanguard Small-Cap ETF a buy, expecting small caps to outperform due to low valuations, strong earnings, and upcoming rate cuts. Small caps are at the end of a long underperformance cycle, with historical patterns and current valuations signaling a likely leadership shift. VB offers broad diversification, low fees, and solid performance versus peers, though tech exposure is a concern; industrials and financials are well positioned.
| XMEX Exchange | US Country |
The fund advisor operates on a principle of index-based investing, focusing on small-cap U.S. stocks as defined by the CRSP US Small Cap Index. This approach is strategic in nature, opting for a broad diversification within the small-cap segment of the market. The intent behind this method is not to outperform the market but to mirror the performance of the designated index. By doing so, the advisor aligns its investment portfolio directly with the composition and performance of the CRSP US Small Cap Index, thereby offering an investment product that seeks to reflect the overall movement and potential growth of small-cap U.S. stocks.
The fund advisor specializes in index-based investment solutions, particularly focusing on the following product:
This fund is designed to closely follow the performance of the CRSP US Small Cap Index. It achieves this by investing in all, or substantially all, of the stocks included in the index. The key strategy involves maintaining the portfolio's composition in alignment with the index's own composition, aiming for identical weighting on a stock-by-stock basis. This product is ideal for investors seeking exposure to a diversified mix of small-cap U.S. stocks, with the aim of replicating the index's performance rather than outperforming the market.