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

Designed to provide broad exposure to the Small Cap Value segment of the US equity market, the Vanguard S&P Small-Cap 600 Value ETF (VIOV) is a passively managed exchange traded fund launched on 09/09/2010.The fund is sponsored by Vanguard. It has amassed assets over $1.35 billion, making it one of the average sized ETFs attempting to match the Small Cap Value segment of the US equity market.Why Small Cap ValueSmall cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull 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 0.10%, making it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 1.83%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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 27.50% of the portfolio. Industrials and Consumer Discretionary round out the top three.Looking at individual holdings, Comerica Inc (CMA) accounts for about 1.27% of total assets, followed by Bath & Body Works Inc (BBWI) and Robert Half Inc (RHI).The top 10 holdings account for about 7.11% of total assets under management.Performance and RiskVIOV seeks to match the performance of the S&P SmallCap 600 Value Index before fees and expenses. The S&P SmallCap 600 Value Index represents the value companies of the S&P SmallCap 600 Index.The ETF has lost about -2.61% so far this year and is up about 8.89% in the last one year (as of 02/26/2025). In the past 52-week period, it has traded between $80.92 and $101.38.The ETF has a beta of 1.17 and standard deviation of 21.68% for the trailing three-year period, making it a medium risk choice in the space. With about 465 holdings, it effectively diversifies company-specific risk.AlternativesVanguard S&P Small-Cap 600 Value 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, VIOV is a great option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.The Avantis U.S. Small Cap Value ETF (AVUV) and the Vanguard Small-Cap Value ETF (VBR) track a similar index. While Avantis U.S. Small Cap Value ETF has $15.49 billion in assets, Vanguard Small-Cap Value ETF has $30.98 billion. AVUV has an expense ratio of 0.25% and VBR charges 0.07%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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 Value ETF (VIOV): ETF Research Reports Comerica Incorporated (CMA): Free Stock Analysis Report Robert Half Inc. (RHI): Free Stock Analysis Report Vanguard Small-Cap Value ETF (VBR): ETF Research Reports Avantis U.S. Small Cap Value ETF (AVUV): ETF Research Reports Bath & Body Works, Inc. (BBWI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks