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

Designed to provide broad exposure to the Small Cap Growth segment of the US equity market, the Vanguard S&P Small-Cap 600 Growth ETF (VIOG) is a passively managed exchange traded fund launched on 09/09/2010.The fund is sponsored by Vanguard. It has amassed assets over $1.06 billion, making it one of the average sized ETFs attempting to match the Small Cap Growth segment of the US equity market.Why Small Cap GrowthWith more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Further, growth stocks have a higher level of volatility associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 1.03%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Industrials sector--about 20% of the portfolio. Consumer Discretionary and Information Technology round out the top three.Looking at individual holdings, Mueller Industries Inc (MLI) accounts for about 1.44% of total assets, followed by Carpenter Technology Corp (CRS) and Spx Technologies Inc (SPXC).The top 10 holdings account for about 6.82% of total assets under management.Performance and RiskVIOG seeks to match the performance of the S&P Small-Cap 600 Growth Index before fees and expenses. The S&P Small-Cap 600 Growth Index represents the growth companies of the S&P Small-Cap 600 Index.The ETF return is roughly 19.33% so far this year and is up about 33.85% in the last one year (as of 11/25/2024). In the past 52-week period, it has traded between $95.59 and $128.28.The ETF has a beta of 1.09 and standard deviation of 22.31% for the trailing three-year period, making it a medium risk choice in the space. With about 358 holdings, it effectively diversifies company-specific risk.AlternativesVanguard S&P Small-Cap 600 Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VIOG is a reasonable option for those seeking exposure to the Style Box - Small Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.The iShares Russell 2000 Growth ETF (IWO) and the Vanguard Small-Cap Growth ETF (VBK) track a similar index. While iShares Russell 2000 Growth ETF has $13.22 billion in assets, Vanguard Small-Cap Growth ETF has $20.15 billion. IWO has an expense ratio of 0.24% and VBK charges 0.07%.Bottom-LineAn increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also 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 Growth ETF (VIOG): ETF Research Reports Carpenter Technology Corporation (CRS): Free Stock Analysis Report Mueller Industries, Inc. (MLI): Free Stock Analysis Report iShares Russell 2000 Growth ETF (IWO): ETF Research Reports SPX Technologies, Inc. (SPXC): Free Stock Analysis Report Vanguard Small-Cap Growth ETF (VBK): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks