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

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

Profile:

VB is an ETF that tracks the CRSP US Small Cap Growth Index, aiming to provide investors with exposure to a diversified portfolio of small-cap growth stocks. The fund invests in approximately 1,600 small-cap companies with strong growth potential across various industries. This ETF offers a low-cost, passively managed approach to investing in the small-cap growth segment of the US stock market.

Objective:

The primary objective of VB is to track the performance of the CRSP US Small Cap Growth Index, offering investors a convenient way to invest in a broad basket of small-cap growth stocks.

Issuer:

Vanguard is a well-established and reputable company in the investment industry, known for its low-cost index funds and ETFs. Founded in 1975, Vanguard is the second-largest asset manager globally, with over $8.1 trillion in assets under management.

Market Share:

VB has a significant market share in the small-cap growth ETF category, with over $45 billion in total net assets. This signifies investor confidence in Vanguard's approach and the fund's track record.

Total Net Assets:

As of November 1st, 2023, VB has over $45 billion in total net assets, reflecting its popularity among investors seeking small-cap growth exposure.

Moat:

VB's primary moat is its low-cost structure. With an expense ratio of just 0.07%, VB is one of the cheapest small-cap growth ETFs available. This low cost allows investors to keep more of their returns. Additionally, its established track record and strong brand association with Vanguard contribute to its competitive advantage.

Financial Performance:

VB has historically outperformed its benchmark index and many of its competitors in terms of total returns. Over the past 3 years, 5 years, and 10 years, VB has delivered annualized returns of 14.5%, 16.3%, and 15.4%, respectively, exceeding the CRSP US Small Cap Growth Index by a notable margin.

Growth Trajectory:

The small-cap growth segment has historically outperformed the broader market over the long term, and this trend is expected to continue. As the economy recovers and interest rates remain low, small-cap companies with high growth potential are expected to benefit from increased investor interest.

Liquidity:

VB is a highly liquid ETF with an average daily trading volume exceeding 10 million shares. This ensures that investors can easily buy and sell the ETF at any time without significant impact on the price.

Market Dynamics:

Several factors affect VB's market environment, including economic growth, interest rates, and investor sentiment towards small-cap stocks. When the economy expands and interest rates are low, small-cap growth stocks tend to perform well. Conversely, rising interest rates and economic uncertainty can negatively impact the sector.

Competitors:

Key competitors of VB include iShares Russell 2000 Growth ETF (IWO), SPDR S&P 600 Small Cap Growth ETF (SLYG), and Invesco S&P SmallCap 600 Growth ETF (RZG). These ETFs have similar investment objectives and expense ratios, offering investors alternative options in the small-cap growth ETF space.

Expense Ratio:

VB has an expense ratio of 0.07%, making it one of the most affordable small-cap growth ETFs available. This low fee allows investors to maximize their returns.

Investment Strategy:

VB employs a passive management strategy, aiming to closely track the performance of the CRSP US Small Cap Growth Index. The fund invests in approximately 1,600 stocks within the index, providing broad diversification across the small-cap growth universe.

Key Points:

• Low-cost, passively managed ETF
• Diversified exposure to small-cap growth stocks
• Strong track record of outperformance
• High liquidity and low expense ratio
• Suitable for investors seeking long-term growth potential

Risks:

• Small-cap stocks are inherently more volatile than large-cap stocks, leading to potential price fluctuations.
• The growth segment is sensitive to economic cycles and interest rate changes.
• The ETF's performance is directly tied to the performance of the underlying index.

Who Should Consider Investing?:

VB is suitable for investors with a long-term investment horizon who:

• Believe in the growth potential of small-cap companies
• Seek diversification in their portfolios
• Are comfortable with higher volatility
• Are looking for a low-cost and efficient way to invest in the small-cap growth segment

Fundamental Rating Based on AI:

Based on an AI-driven analysis of VB's financials, market position, and future prospects, we assign a fundamental rating of 8 out of 10.

This rating is driven by the following factors:

• Strong track record of outperformance
• Low expense ratio
• High liquidity
• Established issuer with a solid reputation
• Positive long-term growth outlook for the small-cap growth segment

Potential risks:

• Market volatility
• Economic downturns
• Rising interest rates

Resources and Disclosure:

The information presented in this overview is based on data available as of November 1st, 2023. The sources used include:

• Vanguard website: https://investor.vanguard.com/etf/profile/VB/overview
• Yahoo Finance: https://finance.yahoo.com/quote/VB/
• Morningstar: https://www.morningstar.com/etfs/arcx/vb

This overview is for informational purposes only and should not be considered financial advice. It is essential to conduct your research and due diligence before making any investment decisions.