VTWO offers diversified small-cap exposure with low idiosyncratic risk, but is more sensitive to macroeconomic factors than large-cap funds. Despite recent momentum, VTWO has historically underperformed the S&P 500, especially during periods of economic stress and market volatility. Current market conditions and macro risks make broad small-cap exposure less attractive compared to large caps, even if some risks subside.
The Vanguard Russell 2000 Index Fund ETF Shares is overweight cyclical sectors such as Financials, Industrials, and Consumer Discretionary. The Fed sees 2025 U.S. GDP growth at only 1.4%—the weakest since the start of the 2020 economic recovery. Looking ahead to 2026–2027, the U.S. economy should pick up steam, benefiting VTWO's cyclical overweight positions.
If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the Vanguard Russell 2000 ETF (VTWO), a passively managed exchange traded fund launched on 09/22/2010.
![]() VTWO In 1 month Estimated | Other | $0.25 Per Share |
![]() VTWO 1 month ago Paid | Other | $0.25 Per Share |
![]() VTWO 3 months ago Paid | Quarterly | $0.25 Per Share |
![]() VTWO 7 months ago Paid | Quarterly | $0.33 Per Share |
![]() VTWO 9 months ago Paid | Quarterly | $0.28 Per Share |
![]() VTWO 27 Jun 2024 Paid | Quarterly | $0.3 Per Share |
![]() VTWO In 1 month Estimated | Other | $0.25 Per Share |
![]() VTWO 1 month ago Paid | Other | $0.25 Per Share |
![]() VTWO 3 months ago Paid | Quarterly | $0.25 Per Share |
![]() VTWO 7 months ago Paid | Quarterly | $0.33 Per Share |
![]() VTWO 9 months ago Paid | Quarterly | $0.28 Per Share |
![]() VTWO 27 Jun 2024 Paid | Quarterly | $0.3 Per Share |
NASDAQ (NMS) Exchange | US Country |
The company operates as a fund advisor, focusing on an indexing investment strategy primarily targeted at mirroring the performance of the Russell 2000® Index. This index is specifically designed to gauge the performance of small-capitalization stocks within the United States, offering a comprehensive overview of this market segment. The investment approach of the company involves attempting to replicate the index by investing all, or substantially all, of its assets into the stocks that make up the index. To achieve this replication accurately, the company maintains holdings in each stock in approximately the same proportion as its weighting in the index itself.
This service involves employing a strategy focused on tracking the performance of the Russell 2000® Index. The indexing investment approach is designed for investors looking to gain exposure to the small-cap market segment in the United States. By mirroring the composition and weightings of the index, the fund aims to offer similar performance characteristics, making it a straightforward option for clients seeking to replicate the market performance of U.S. small-capitalization stocks.
The core service provided by the company involves the replication of the Russell 2000® Index through direct investment in the stocks that constitute the index. This method involves allocating assets into each stock in proportions that align with their weightings within the index. By doing this, the fund advisor seeks to ensure that the fund’s performance closely tracks that of the Russell 2000® Index, thereby providing investors with a portfolio that reflects the broader performance trends of small-cap stocks in the U.S. market.