Vanguard Small-Cap Index Fund ETF (VB) offers broad, low-cost exposure to U.S. small-cap equities, passively tracking the CRSP US Small Cap Index. Current financial conditions and manufacturing PMI indicators are favorable, supporting a tactical buy rating for VB, with suggested allocation capped at 5%. VB's sector exposure is cyclical, led by industrials (22%), technology (13.9%), and financials (13.7%), making it sensitive to the business cycle.
VB: Bottom-Up And Top-Down Analysis Points To Further Outperformance
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.
| XBER 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.