Vanguard Russell 2000 ETF

VTWO

Market cap $15.1B

Looking for broad exposure to the Small Cap Blend segment of the US equity market? You should consider the Vanguard Russell 2000 Index Fund ETF Shares (VTWO), a passively managed exchange traded fund launched on September 22, 2010.

The Russell 2000 is a critically important index that tracks the leading 2,000 small-cap stocks on U.S.-listed markets. Arguably the riskiest stocks, those belonging to the Russell 2000 tend to perform best when economic conditions are at their prime.

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The S&P 500, the Nasdaq-100, and the Dow Jones Industrial Average are each down more than 5% in 2026. The Russell 2000 small-cap index is flat for the year because it's less exposed to the ongoing geopolitical tensions in the Middle East.

Small-cap stocks have gained roughly 21% over the past year despite a choppy start to 2026.

Small-cap stocks tend to grow faster than mid- and large-cap stocks, but they also have higher levels of debt and are therefore riskier. Small-cap stocks perform well during economic expansion but can struggle during a recession.

The Russell 2000 index hosts 2,000 of the smallest companies listed on American stock exchanges. The Russell is sitting on a year-to-date gain of 4.3% vs.

The Russell 2000 index is one of the most popular market benchmarks for small-cap stocks. The Vanguard Russell 2000 ETF (VTWO) casts the widest net for this space, but that also means it includes both the good and the bad.

The market has begun turning away from large-cap tech in 2026. Small caps have been one of the biggest beneficiaries of that rotation.

The Russell 2000 index follows approximately 2,000 of the smallest companies listed on American stock exchanges. The Russell is off to a blistering start in 2026, up 8% so far compared to the more widely followed S&P 500's 1.4%.