In today’s coverage of Vanguard funds, we’ll highlight a trio of Vanguard small-cap stock ETFs.
As is the case with the vast majority of exchange-traded funds, Vanguard’s small-cap stock ETFs are index funds, which means shareholders of these funds get broad exposure to small-cap stocks in a low-cost, passively-managed portfolio.
Although Vanguard Funds only offers three small-cap stock portfolios, smart investors don’t need to venture out beyond the three primary styles of growth, value and a blend of growth and value.
So in true Vanguard fashion, simplicity combines with frugality to make three different ETFs that hold small-cap stocks.
Vanguard Small-Cap Stock ETFs
Vanguard Small-Cap ETF (NYSEARCA:VB): Vanguard’s VB is a smart choice for investors looking for a diversified small-cap stock ETF that covers the full range of growth and value small-cap stocks available in the U.S. market. VB passively tracks the CRSP US Small Cap Index, which covers more than 1,400 U.S. stocks in the small-capitalization range. The expense ratio for VU is a cheap 0.08%.
Vanguard Small-Cap Growth ETF (NYSEARCA:VBK): Investors looking for cheap exposure to small-cap growth stocks will like what they see in Vanguard Small-Cap Growth ETF. As the name implies, VBK holds a basket of U.S. small-cap growth stocks. This ETF passively tracks the CRSP US Small Cap Index, which covers about 675 small growth companies. Growth stocks tend to be more volatile than value stocks but have potential for higher relative returns. The expense ratio for VBK is just 0.08%.
Vanguard Small-Cap Value ETF (NYSEARCA:VBR): This ETF focuses on value stocks with small capitalization. Although VBR is broadly diversified in the small-cap value space, the value slant tends to concentrate the holdings more in the financial and industrial sectors. VBR passively tracks the CRSP US Small Cap Value Index, which represents over 800 small-cap value stocks. The expense ratio for VBR is 0.08%.
As of this writing, Kent Thune did not personally hold a position in any of the aforementioned securities. His No. 1 holding is his privately held investment advisory firm. Under no circumstances does this information represent a recommendation to buy or sell securities.