Vanguard Small-Cap Value ETF

VBR

Market cap $31.9B

Vanguard's mutual ownership structure enables the company to operate at cost, delivering industry-low expense ratios that compound into significant savings over time. International dividends, U.S. technology, and small-cap value offer three distinct return drivers that contribute to a well-rounded portfolio.

Looking for broad exposure to the Small Cap Value segment of the US equity market? You should consider the Vanguard Small-Cap Value ETF (VBR), a passively managed exchange traded fund launched on January 26, 2004.

The Vanguard S&P 500 ETF allows investors to own shares of the most successful U.S. companies. The Vanguard Russell 1000 Growth ETF is the best-performing Vanguard ETF since inception.

Vanguard Small-Cap Value Index Fund ETF Shares is a well-established and well-diversified small/mid-cap value ETF with $58B in assets under management and a 0.07% expense ratio, one of the cheapest in its category. VBR has delivered above-average returns over the last five and ten years. This article highlights the periodic returns for 35 small/mid-cap value ETFs you might be considering. With a $9.5B market cap and a 12.97x forward P/E, VBR doesn't provide the most exposure to size and value, but its yield, growth, and quality features are quite solid.

The Vanguard Small-Cap Value ETF (VBR) offers low-cost, diversified exposure to US small-cap value stocks, tracking the CRSP US Small Cap Value Index. VBR provides a 2.07% yield, strong distribution growth, and broad sector diversification, minimizing concentration risk to any one sector or company. Compared to peers, VBR stands out for its lowest expense ratio and consistent outperformance, though it lacks significant exposure to high-growth sectors.

The Vanguard Small-Cap Value ETF tracks an index of smaller companies in sectors like financials and industrials. The falling-rate environment could help provide a catalyst for this ETF in 2026.

Amid market uncertainty and overvalued equities, value investing with ETFs offer a safer, long-term path to steady returns.

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

The last interest rate cut was in December 2024. Nine months later, Federal Reserve Chair Jerome Powell and the Federal Open Market Committee (FOMC) decided it was again time to lower the Fed's benchmark federal funds rate -- this time by a quarter of a point down to a range of 4% to 4.25%.

Exchange-traded funds (ETFs) now hold $10.3 trillion in U.S. assets, yet most investors still overpay for the basic market exposure that such funds provide. While the average index equity ETF charges 0.14%, Vanguard continues to undercut the competition through its unique investor-owned structure -- the fund company is literally owned by its funds, which are owned by shareholders.