Vanguard Small-Cap Growth ETF

VBK

Market cap $21.3B

If you're interested in broad exposure to the Small Cap Growth segment of the US equity market, look no further than the Vanguard Small-Cap Growth ETF (VBK), a passively managed exchange traded fund launched on January 26, 2004.

Vanguard Small-Cap Growth Index Fund ETF offers diversified small-cap growth exposure with a 0.07% expense ratio and ~$39B AUM. VBK tracks the CRSP US Small Cap Growth Index, emphasizing fundamental growth metrics over momentum, and rebalances quarterly. Tech, industrials, and healthcare dominate VBK's sector allocation, reflecting long-duration and cyclical growth exposure coupled with non-cyclical drivers.

The Vanguard Small-Cap Growth ETF offers a much lower expense ratio and larger assets under management than Invesco S&P SmallCap 600 Pure Growth ETF. RZG edges out VBK on one-year total return but both showed nearly identical drawdowns and long-term growth.

The Vanguard Small-Cap Growth ETF charges a lower expense ratio than the iShares S&P Small-Cap 600 Growth ETF. VBK has outperformed on one-year returns but experienced a deeper max drawdown over the past five years.

VBK charges a lower expense ratio and holds a much larger asset base than SLYG. VBK has delivered a higher 1-year total return but experienced a deeper five-year drawdown.

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

Invesco S&P SmallCap Momentum ETF (XSMO) is rated a buy, while Vanguard Small-Cap Growth ETF (VBK) is rated a hold. XSMO's momentum strategy delivers higher long-term returns and better risk-adjusted performance than VBK's passive growth approach. Despite higher fees, XSMO justifies its cost with superior returns, lower drawdowns, and more attractive valuations compared to VBK.

If you're interested in broad exposure to the Small Cap Growth segment of the US equity market, look no further than the Vanguard Small-Cap Growth ETF (VBK), a passively managed exchange traded fund launched on January 26, 2004.

The best ETFs to diversify for volatility and falling interest rates include high-quality large caps, small-cap growth, international equities, and gold. The macro environment points to mild stagflation, but there's no recession in sight, allowing investors to balance caution with optimism in a resilient market, despite some economic weakness. Although the first few months following the Fed's initial rate cut have historically been volatile, equities tend to push higher over the next six to 12 months.

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