Vanguard Morningstar Small-Cap Value ETF

VBR

Valor de mercado US$ 36 bi

Vanguard sees U.S. value stocks and small-caps outperforming growth stocks and large-caps in the next decades. If so, the Vanguard Morningstar Small-Cap Value ETF could be a better buy than other S&P 500 ETFs.

The Vanguard Morningstar Small-Cap Value ETF (VBR) was launched on January 26, 2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Value segment of the US equity market.

The Vanguard Morningstar Small-Cap Value ETF remains a buy, with the recent pullback presenting an attractive entry point. VBR trades at a compelling 13.6x P/E and a 1.28x PEG, supported by a 10.58% long-term earnings growth rate. Rising Treasury yields and a bear-flattened curve pressure VBR, especially its regional bank exposure, but much bad news appears priced in.

The Vanguard Morningstar Small-Cap Value ETF carries a significantly lower expense ratio than the State Street SPDR S&P 600 Small Cap Value ETF. The State Street SPDR S&P 600 Small Cap Value ETF delivered stronger 1-year total returns but has a smaller asset base and deeper 5-year drawdown.

Small-cap stocks have performed well so far in 2026, but the Fed's next move could have a big impact. The Vanguard Small-Cap Value ETF is one that could be particularly sensitive to whatever the Fed does next.

The Magnificent Seven have ruled markets for years, but cracks in the AI spending story are pushing serious investors toward a corner of the market most have ignored since the dot-com era.

Small-cap equities are winning out against their large-cap counterparts in a classic David versus Goliath ETF battle. After years of mega-cap technology dominance, small-cap equities have delivered investors a historic first half of 2026.

The Vanguard Morningstar Small-Cap Value ETF offers a significantly lower expense ratio of 0.05% compared to 0.18% for the iShares S&P Mid-Cap 400 Value ETF. The Vanguard Morningstar Small-Cap Value ETF manages over $67.8 billion in assets and provides broader diversification with 841 holdings.

New market analysis from Vanguard suggests that U.S. value stocks might be a better buy than U.S. growth stocks for the next decade. The Vanguard Value Factor ETF has delivered 12.4% annualized returns for the past five years and has performed even better in the past year.

VBR is significantly cheaper, with a 0.05% expense ratio compared to 0.24% for IWN. IWN offers a broader portfolio, with 1,389 holdings compared to VBR's 840 positions.