The Vanguard Small-Cap Growth ETF (VBK) was launched on January 26, 2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Growth segment of the US equity market.
VBK has struggled to deliver consistent growth outperformance, especially in the current high-rate environment, trailing alternatives like IWO post-pandemic. Sector allocation differences—VBK's tech tilt versus IWO's healthcare and fintech—have contributed to recent underperformance and muted returns. Small-cap growth, and VBK specifically, face headwinds from lackluster investor interest and a risk-reward profile inferior to large caps.
VBK offers diversified, low-cost exposure to small-cap growth stocks, making it attractive ahead of potential Fed rate cuts in late 2025. Small caps historically outperform during rate-cut cycles, and improving trade and manufacturing conditions further support the investment case for VBK. Despite recent underperformance versus the S&P 500, VBK's sector mix and policy tailwinds position it for stronger relative returns going forward.
![]() VBK In 1 month Estimated | Quarterly | $0.42 Per Share |
![]() VBK 1 month ago Paid | Quarterly | $0.42 Per Share |
![]() VBK 7 months ago | Other | $0.4 Per Share |
![]() VBK 10 months ago Paid | Quarterly | $0.29 Per Share |
![]() VBK 27 Jun 2024 Paid | Quarterly | $0.41 Per Share |
![]() VBK 21 Mar 2024 Paid | Quarterly | $0.41 Per Share |
![]() VBK In 1 month Estimated | Quarterly | $0.42 Per Share |
![]() VBK 1 month ago Paid | Quarterly | $0.42 Per Share |
![]() VBK 7 months ago | Other | $0.4 Per Share |
![]() VBK 10 months ago Paid | Quarterly | $0.29 Per Share |
![]() VBK 27 Jun 2024 Paid | Quarterly | $0.41 Per Share |
![]() VBK 21 Mar 2024 Paid | Quarterly | $0.41 Per Share |
XMEX Exchange | US Country |
The fund operates with a specific focus on growth stocks within the small-cap segment of the U.S. market. It follows a disciplined indexing approach to mirror the performance of the CRSP US Small Cap Growth Index. This index represents a wide array of small U.S. companies poised for growth. The fund’s strategy involves replicating the index by allocating its assets across the stocks included in the index. It aims to maintain the proportion of each stock in alignment with its index weighting, ensuring a faithful representation of the index’s performance through its investment choices.
This technique is foundational to the fund’s operation, focusing on mirroring the performance of the CRSP US Small Cap Growth Index. This strategy is designed to provide investors with exposure to a diversified portfolio of small-cap growth stocks in the U.S., reflecting the index's composition and weighting.
The fund specifically targets the CRSP US Small Cap Growth Index, known for its broad diversification among growth stocks of small U.S. companies. By aiming to replicate the index’s performance, the fund provides investors an opportunity to gain from the potential growth of these small-cap stocks, maintaining investment proportions similar to the index’s.