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

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

Profile:

The Vanguard Small-Cap Growth Index Fund ETF Shares (VB) is a passively managed exchange-traded fund (ETF) that tracks the performance of the CRSP US Small Cap Growth Index. This index comprises small-capitalization U.S. companies with high growth potential. VB invests in approximately 1,247 stocks across various sectors, with a focus on technology, healthcare, and consumer discretionary.

Objective:

VB aims to provide long-term capital appreciation by closely mirroring the performance of the CRSP US Small Cap Growth Index. It achieves this by investing in the stocks represented in the index in the same proportion.

Issuer:

Vanguard Group is the issuer of VB.

• Reputation and Reliability: Vanguard is a renowned and reputable investment firm with over 30 million investors and $8.6 trillion in assets under management. It is known for its low-cost index funds and commitment to investor education.
• Management: The ETF is managed by an experienced team of professionals at Vanguard with a deep understanding of the small-cap growth market.

Market Share:

VB has a significant market share in the small-cap growth ETF space, with approximately $43.54 billion in assets under management and an average daily trading volume of 14.6 million shares.

Total Net Assets:

As of October 26, 2023, VB has $43.54 billion in total net assets.

Moat:

VB's competitive advantages include:

• Low expense ratio: With an expense ratio of 0.07%, VB is one of the most affordable small-cap growth ETFs available.
• Diversification: The ETF's broad exposure to approximately 1,247 stocks mitigates single-stock risk.
• Transparency: VB's holdings are publicly available, allowing investors to understand the composition of the ETF.

Financial Performance:

VB has historically outperformed the CRSP US Small Cap Growth Index, delivering an average annual return of 14.27% over the past five years.

Growth Trajectory:

The small-cap growth market is expected to experience continued growth, driven by technological advancements, innovation, and increasing consumer spending. This bodes well for VB's future performance.

Liquidity:

VB is a highly liquid ETF with an average daily trading volume of 14.6 million shares. This allows investors to easily buy and sell shares without significantly impacting the price.

Market Dynamics:

Factors affecting VB's market environment include:

• Economic growth: Strong economic growth can lead to increased investment in small-cap growth companies.
• Interest rate environment: Rising interest rates can make it more expensive for small companies to borrow money, potentially hindering their growth.
• Technological advancements: Breakthroughs in technology can drive innovation and growth in the small-cap sector.

Competitors:

VB's key competitors include:

• iShares Russell 2000 Growth ETF (IWO): Expense ratio of 0.25%
• Invesco S&P SmallCap 600 Growth ETF (RZG): Expense ratio of 0.35%
• SPDR S&P 600 Small Cap Growth ETF (SLYG): Expense ratio of 0.15%

Expense Ratio:

VB has an expense ratio of 0.07%, making it one of the most affordable small-cap growth ETFs available.

Investment approach and strategy:

• Strategy: VB tracks the CRSP US Small Cap Growth Index, passively investing in the same proportion as the index constituents.
• Composition: The ETF holds approximately 1,247 stocks in various sectors, with a focus on technology, healthcare, and consumer discretionary.

Key Points:

• Low expense ratio of 0.07%
• Diversification across approximately 1,247 stocks
• Transparency in holdings
• Strong historical performance
• Positive growth trajectory

Risks:

• Market risk: VB's performance is tied to the overall performance of the small-cap growth market, which can be volatile.
• Interest rate risk: Rising interest rates can negatively impact the growth prospects of small companies.
• Liquidity risk: While VB is generally liquid, there may be times when it is difficult to buy or sell shares without impacting the price.

Who Should Consider Investing:

VB is suitable for investors seeking:

• Long-term capital appreciation
• Exposure to the small-cap growth market
• Low-cost diversification
• Passive investment strategy

Fundamental Rating Based on AI:

Based on an AI-based rating system, VB receives a score of 7 out of 10. This rating considers various factors, including financial health, market position, and future prospects.

Resources and Disclaimers:

• Vanguard Small-Cap Growth Index Fund ETF Shares (VB): https://investor.vanguard.com/etf/profile/vb
• CRSP US Small Cap Growth Index: https://www.crsp.org/products/indexes/us-small-cap-growth-index
• Morningstar: https://www.morningstar.com/etfs/arcx/vb/quote

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.