Should Vanguard Small-Cap ETF (VB) Be on Your Investing Radar?

The Vanguard Small-Cap ETF (VB) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.The fund is sponsored by Vanguard. It has amassed assets over $61.16 billion, making it one of the largest ETFs attempting to match the Small Cap Blend segment of the US equity market.Why Small Cap BlendSitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.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 0.05%, making it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 1.35%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation to the Industrials sector--about 19.90% of the portfolio. Financials and Information Technology round out the top three.Looking at individual holdings, Slcmt1142 accounts for about 0.89% of total assets, followed by Axon Enterprise Inc (AXON) and Applovin Corp (APP).Performance and RiskVB seeks to match the performance of the CRSP US Small Cap Index before fees and expenses. The CRSP US Small Cap Index includes U.S. companies that fall between the bottom 2%-15% of the investable market capitalization. There is no lower limit in market capitalization. The index includes securities traded on NYSE, NYSE Market, NASDAQ or ARCA.The ETF has lost about -3.50% so far this year and is up roughly 6.19% in the last one year (as of 03/04/2025). In the past 52-week period, it has traded between $210.76 and $261.58.The ETF has a beta of 1.16 and standard deviation of 20.75% for the trailing three-year period, making it a medium risk choice in the space. With about 1383 holdings, it effectively diversifies company-specific risk.AlternativesVanguard Small-Cap 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, VB 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 $65.25 billion in assets, iShares Core S&P Small-Cap ETF has $82.12 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.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 Small-Cap ETF (VB): ETF Research Reports AppLovin Corporation (APP): Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports Axon Enterprise, Inc (AXON): 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