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.
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.
If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the Vanguard Small-Cap ETF (VB), a passively managed exchange traded fund launched on 01/26/2004.
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.
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.
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.
One of the more important parts of smart investing is diversification. This has two benefits: It reduces risks by not relying on too few stocks, and it increases your long-term return potential.
Small-cap stocks are currently in correction territory and have underperformed the S&P 500. Small-cap stocks typically outperform during economic recoveries, but current economic indicators suggest potential softness and recession fears ahead. Despite attractive valuations relative to the S&P 500, small-cap stocks are not well-positioned to recover (for now) due to looming trade wars and economic pressures.