Should Vanguard S&P Small-Cap 600 ETF (VIOO) Be on Your Investing Radar?

Launched on 09/09/2010, the Vanguard S&P Small-Cap 600 ETF (VIOO) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.The fund is sponsored by Vanguard. It has amassed assets over $2.75 billion, making it one of the larger ETFs attempting to match the Small Cap Blend segment of the US equity market.Why Small Cap BlendThere's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 1.64%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Financials sector--about 20.30% of the portfolio. Industrials and Consumer Discretionary round out the top three.Looking at individual holdings, Carpenter Technology Corp (CRS) accounts for about 0.66% of total assets, followed by Comerica Inc (CMA) and Mara Holdings Inc (MARA).The top 10 holdings account for about 1.31% of total assets under management.Performance and RiskVIOO seeks to match the performance of the S&P SmallCap 600 Index before fees and expenses. The S&P SmallCap 600 Index represents the small-cap segment of the U.S. equity market.The ETF has lost about -9.47% so far this year and is down about -0.53% in the last one year (as of 03/13/2025). In the past 52-week period, it has traded between $93.69 and $117.99.The ETF has a beta of 1.14 and standard deviation of 21.30% for the trailing three-year period, making it a medium risk choice in the space. With about 611 holdings, it effectively diversifies company-specific risk.AlternativesVanguard S&P Small-Cap 600 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VIOO is an outstanding option for investors seeking exposure to the Style Box - Small Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $63.66 billion in assets, iShares Core S&P Small-Cap ETF has $78.57 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vanguard S&P Small-Cap 600 ETF (VIOO): ETF Research Reports Comerica Incorporated (CMA): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report iShares Core S&P Small-Cap ETF (IJR): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks