 The
Small-Cap Value ETF Vanguard is an exchange-traded fund that seeks to
track the performance of the CRSP US Small Cap Value Index, which
includes U.S. companies with a market capitalization between $300
million and $2 billion that exhibit value characteristics. The fund is
managed by Vanguard, one of the largest investment management
companies in the world.
As of September 2021, the VBR ETF had a
net asset value of approximately $32 billion and held over 1,300
individual stocks. The fund's portfolio is diversified across multiple
sectors, with a focus on small-cap U.S. companies that have
demonstrated value characteristics such as low price-to-earnings
ratios, high dividend yields, and low price-to-book ratios.
The
VBR ETF is designed to provide investors with a way to potentially
benefit from the value potential of small-cap U.S. companies while
also diversifying their portfolio. However, investors should be aware
that investing in small-cap stocks carries its own set of risks,
including liquidity risk, market volatility, and greater sensitivity
to economic and industry conditions.
The expense ratio for the
VBR ETF is 0.07%, which is relatively low compared to the expense
ratios of some other equity funds. This may make the VBR ETF an
attractive option for investors seeking exposure to small-cap U.S.
companies with value characteristics at a low cost.
Overall,
the Small-Cap Value ETF Vanguard may be a suitable investment for
investors seeking exposure to small-cap U.S. companies with value
characteristics and the potential for outperformance over the long
term. However, as with any investment, it is important to conduct your
own research and consider your investment goals and risk tolerance
before investing in the fund.
|
