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4 Small-Cap Funds for Big Upside

A mutual fund or ETF can help to reduce the group's risk

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Vanguard S&P Small-Cap 600 Growth Index ETF

Vanguard mutual funds 401(k)If you want to take an index approach, one strong option is the Vanguard S&P Small-Cap 600 Growth Index ETF (VIOG). The average market cap is $1.5 billion and all the stocks are based in the U.S. There is also a strong bias towards tech companies, which make up about 22% of the portfolio.

Of course, a big advantage of the VIOG exchange-traded fund is the low cost. Consider that the expense ratio is a rock-bottom 0.2%.

In other words, this leaves more money for investors. Plus, over the past year, the return was an impressive 27.9%.

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