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

Overview

The 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 offers exposure to rapidly growing small companies across various sectors. The fund employs a full replication strategy, holding all stocks in the underlying index.

Reputation and Reliability

Vanguard is a highly reputable and reliable investment management company known for its low-cost, passively managed funds.

Management Expertise

Vanguard has extensive experience managing index funds, with a strong track record of tracking benchmark indices effectively.

Goal

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

Investment Approach and Strategy

Strategy: The fund employs a passive management, full replication strategy designed to track the performance of the CRSP US Small Cap Growth Index.

Composition Primarily holds common stocks of small-cap U.S. companies exhibiting growth characteristics.

Market Share: Data Unavailable

Total Net Assets (AUM): 17810000000

Key Competitors

• IWO
• XSMO
• FNYG

Competitive Landscape

The small-cap growth ETF market is moderately competitive. VBK benefits from Vanguard's reputation for low fees and index tracking. Competitors may offer slightly different index methodologies or sector weightings. VBK's main disadvantage could be relative underperformance if its index selection is less effective than others.

Historical Performance: Historical performance data needs to be accessed through financial data providers and is not included in this response.

Benchmark Comparison: Benchmark comparison requires accessing financial performance data of both VBK and its benchmark (CRSP US Small Cap Growth Index) over various time periods.

Expense Ratio: 0.07

Average Trading Volume

VBK exhibits sufficient liquidity, as evidenced by a robust average daily trading volume, facilitating ease of entry and exit for investors.

Bid-Ask Spread

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

Market Environment Factors

Economic indicators such as GDP growth, interest rates, and inflation affect small-cap growth stocks. Sector-specific growth prospects and overall market sentiment also play crucial roles.

Growth Trajectory

VBK's growth is tied to the performance of the small-cap growth segment. Changes in strategy and holdings are minimal due to its passive index-tracking approach.

Competitive Edge

VBK's competitive edge lies in Vanguard's brand reputation, low expense ratio, and efficient tracking of the CRSP US Small Cap Growth Index. This combination attracts cost-conscious investors seeking broad exposure to the small-cap growth market. The fund's passive management style ensures consistent and predictable investment results aligned with the index. Its scale allows for efficient trading and minimal tracking error.

Volatility

VBK's volatility is expected to be higher than broad market indexes, as small-cap growth stocks are generally more volatile than large-cap stocks.

Market Risk

VBK is subject to market risk, meaning its value can decline due to overall market downturns or negative sentiment towards growth stocks. Specific risks include interest rate sensitivity and sector concentration.

Ideal Investor Profile

The ideal investor is one seeking long-term capital appreciation through exposure to small-cap growth stocks and is comfortable with higher volatility. This includes investors who believe in the potential of smaller companies to outperform over time.

Market Risk

VBK is suitable for long-term investors and passive index followers seeking exposure to the small-cap growth segment of the U.S. equity market.

Vanguard Small-Cap Growth Index Fund ETF Shares (VBK) provides exposure to a diversified portfolio of small-cap growth companies through efficient index tracking and low expense ratio. It is an ideal option for long-term investors comfortable with a higher level of volatility. VBK's main advantage is the efficient and reliable replication of the CRSP US Small Cap Growth Index. Given its passive approach and Vanguard's reputation, VBK provides a cost-effective and convenient way to access a specific segment of the equity market.

Data Sources:

• Vanguard's official website
• Financial data providers (e.g., Yahoo Finance, Bloomberg)
• Index provider (CRSP) documentation

Disclaimers:

This analysis is for informational purposes only and does not constitute investment advice. Market conditions can change rapidly, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.