Vanguard Small-Cap Growth Index Fund ETF Shares (VBK)

Overview

Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) seeks to track the performance of a benchmark index that measures the investment return of small-capitalization growth stocks. It focuses on providing exposure to U.S. small-cap companies exhibiting growth characteristics, with a diversified asset allocation across various sectors.

Reputation and Reliability

Vanguard is a highly reputable and reliable issuer known for its low-cost, index-tracking investment products and a long track record of successful ETF management.

Management Expertise

Vanguard has extensive experience in managing index-tracking ETFs, leveraging a team of professionals focused on efficient portfolio management and minimizing tracking error.

Goal

The fund seeks to track the investment return of the CRSP US Small Cap Growth Index, which represents the growth segment of the U.S. small-cap equity market.

Investment Approach and Strategy

Strategy: VBK aims to replicate the CRSP US Small Cap Growth Index, providing investors with exposure to a broadly diversified portfolio of small-cap growth stocks.

Composition The ETF primarily holds stocks of small-cap U.S. companies that exhibit growth characteristics, based on factors such as earnings growth and price momentum.

Market Share: VBK holds a significant market share within the small-cap growth ETF segment, driven by Vanguard's brand recognition and low cost structure.

Total Net Assets (AUM): 17600000000

Key Competitors

• iShares Russell 2000 Growth ETF (IWO)
• Schwab U.S. Small-Cap Growth ETF (SCHA)
• SPDR S&P 600 Small Cap Growth ETF (SPYG)

Competitive Landscape

The small-cap growth ETF market is competitive, with multiple players offering similar exposure. VBK benefits from Vanguard's low-cost structure, while competitors like IWO track different indexes and may have different sector allocations. Advantages of VBK include low expense ratio and brand trust; disadvantages include potential tracking error relative to the index.

Historical Performance: Historical performance data should be reviewed from reliable sources. Please see the Disclaimer below.

Benchmark Comparison: The ETF's performance is compared to the CRSP US Small Cap Growth Index to assess tracking efficiency.

Expense Ratio: 0.07

Average Trading Volume

VBK demonstrates strong liquidity with a high average daily trading volume, facilitating ease of trading for investors.

Bid-Ask Spread

The bid-ask spread for VBK is typically tight, indicating efficient trading and lower transaction costs for investors.

Market Environment Factors

Economic growth, interest rate changes, and investor sentiment toward small-cap stocks are all factors that influence VBK's performance.

Growth Trajectory

The growth trajectory of VBK is influenced by overall economic conditions and the performance of the small-cap growth segment. Changes to strategy are infrequent, focusing on maintaining index tracking.

Competitive Edge

VBK's competitive edge stems from Vanguard's established reputation for low-cost investing, coupled with efficient index tracking. Its broad diversification across small-cap growth stocks helps mitigate concentration risk. The low expense ratio attracts cost-conscious investors, enabling better long-term returns. Vanguard's experience in ETF management ensures operational efficiency and minimal tracking error. This combination makes VBK a compelling choice for investors seeking exposure to small-cap growth.

Volatility

Small-cap stocks are inherently more volatile than large-cap stocks, which can result in higher price fluctuations for VBK.

Market Risk

VBK is subject to market risk, including the risk of economic downturns and adverse market conditions that can negatively impact the value of small-cap growth stocks.

Ideal Investor Profile

The ideal investor for VBK is one seeking long-term capital appreciation through exposure to small-cap growth stocks and is comfortable with the higher volatility associated with this asset class.

Market Risk

VBK is best suited for long-term investors with a higher risk tolerance who are seeking growth potential and diversification within their portfolio.

Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) offers low-cost exposure to the small-cap growth segment of the U.S. equity market by tracking the CRSP US Small Cap Growth Index. Its main advantage is its low expense ratio and diversification, backed by Vanguard's strong reputation. The fund carries market risk and volatility typical of small-cap stocks. VBK suits long-term investors comfortable with higher risk seeking growth potential through smaller companies, and who want to match the returns of the index that VBK tracks.

Data Sources:

• Vanguard Official Website
• Morningstar
• Yahoo Finance

Disclaimers:

The data provided is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor. Market share and performance data are subject to change. Please consult official fund prospectuses for current and complete information.