Summary
VB Chart
VB: This Is Why Patient Investors Should Remain Confident With Small Caps
I recommend buying the Vanguard Small-Cap ETF (VB) for diversified, cost-effective exposure to U.S. small caps with strong upside potential. Key catalysts include anticipated tax cuts, projected interest rate reductions in 2025, and easing trade tensions, all of which should benefit small caps. Current valuation at 13.5x EV/EBITDA offers a 14.8% upside versus historical averages, supporting a favorable risk-return profile.
VB: Small Caps Snap Back, Remain Bullish Despite An Early-Year Bear Market
I reiterate my buy rating on VB despite recent underperformance, as its valuation remains attractive and technicals have stabilized after a difficult period. VB continues to outperform peer small-cap ETFs, maintains strong earnings growth prospects for 2025, and offers a low expense ratio with solid diversification. The ETF's depressed valuation, strong seasonality from May through July, and sector exposure to Industrials and Tech support my positive outlook.
Should Vanguard Small-Cap ETF (VB) Be on Your Investing Radar?
Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Vanguard Small-Cap ETF (VB) is a passively managed exchange traded fund launched on 01/26/2004.
Vanguard Small-Cap ETF (VB) FAQ
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Does it pay dividends? What is the current yield?
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Has Vanguard Small-Cap ETF ever had a stock split?
Vanguard Small-Cap ETF Profile
| ARCA Exchange | US Country |
Overview
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.
Products and Services
The fund advisor specializes in index-based investment solutions, particularly focusing on the following product:
- Index-Tracking Investment Fund:
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.
Contact Information
