The Vanguard Small-Cap ETF is rated BUY, offering broad, low-cost exposure to over 1,315 U.S. small-cap companies at a 0.03% expense ratio. I expect market leadership to broaden beyond mega-cap tech, positioning VB to benefit from increased participation across the equity market. VB's sector allocation—led by industrials, technology, and financials—aligns with a scenario where economic sensitivity and domestic growth regain importance.
Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Vanguard Small-Cap Index Fund ETF Shares (VB) is a passively managed exchange traded fund launched on January 26, 2004.
Vanguard Small-Cap ETF achieves a new all-time high, outperforming the S&P 500 with strong momentum and rising earnings estimates. I reiterate a "Buy" rating on VB, citing compelling valuation at just over 16x P/E and a robust 11.36% long-term EPS growth rate. VB's diversified portfolio spans mid-cap exposure and balanced sector allocation, with Industrials, Information Technology, Financials, and Health Care leading.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| SH Suzanne Hornick ASSET PLANNING Corp.ORATION | 22,101 | $4.35M | $6.57M | $2.22M | 51.04% |
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 36,590 | $8.52M | $10.88M | $2.36M | 27.67% |
| DI David Izzi Brown, LISLE/CUMMINGS Inc. | 2,308 | $448,485.35 | $686,306.88 | $237,821.53 | 53.03% |
| MSH Michelle S. Hickox FIRST FINANCIAL BANKSHARES Inc. | 1,788 | $418,553.33 | $531,786.96 | $113,233.63 | 27.05% |
| TMB Timothy M. Bidwell Hazlett, BURT & WATSON Inc. | 1,291 | $299,998.83 | $383,891.76 | $83,892.93 | 27.96% |
| ARCA 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.