Vanguard Russell 2000 ETF

VTWO

Market cap $13.5B

The Vanguard Russell 2000 ETF trades at a P/E ratio of 17.4, significantly below VOO's 28.5 multiple. Small-cap stocks outperformed the S&P 500 during and after the dot-com crash, suggesting they can weather certain storms better.

The S&P 500 is the best way to get overall exposure to the broader U.S. economy. Investing in mid- and small-cap stocks gives you exposure to the additional opportunities.

True to its name, Vanguard stands on the vanguard of the exchange traded fund (ETF) revolution.

The Russell 2000 is the primary index for small-cap stocks, containing around 2,000 companies. The S&P 500 is historically expensive, increasing the chances for a pullback or correction.

Investors in the Vanguard Russell 2000 ETF don't gain exposure to the companies benefiting from the powerful AI boom. Falling interest rates could support higher returns for the Vanguard Russell 2000 ETF going forward, but it's not a sure thing.

The Vanguard Russell 2000 ETF is a highly diversified way to invest. With falling interest rates and low small-cap valuations, now could be the time to take a look.

The S&P 500 and Nasdaq are within a couple percentage points of their all-time highs, and many popular stocks and ETFs are looking rather expensive right now. That's especially true about some of the mega-cap technology stocks, and the funds that are heavily weighted in favor of the largest companies in the market.

Launched on September 22, 2010, the Vanguard Russell 2000 ETF (VTWO) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.

Vanguard Russell 2000 Index Fund ETF is rated a buy, supported by strong earnings growth prospects and attractive valuation. VTWO benefits from historical small-cap outperformance after Fed rate cuts and a diversified sector allocation with no single sector over 18%. The ETF offers low expenses, solid liquidity, and a balanced mix of value, blend, and growth, but carries inherent small-cap risks.

"Buy low, sell high" isn't the only way to make money investing. You might want to consider buying high and never selling.