Vanguard S&P Small-Cap 600 Growth Index Fund ETF Shares (VIOG)

ETF Vanguard S&P Small-Cap 600 Growth Index Fund ETF Shares (VIOG)

Profile:

VIOG is an ETF that tracks the S&P SmallCap 600 Growth Index. This index comprises the 600 smallest publicly traded U.S. companies with high growth potential, as determined by factors like earnings and sales growth. VIOG seeks to replicate the performance of the index by investing in its constituent companies.

Focus: U.S. small-cap growth stocks

Asset allocation: Primarily stocks with high growth potential

Investment strategy: Passive index replication

Objective:

VIOG's primary investment goal is to provide long-term capital appreciation by tracking the S&P SmallCap 600 Growth Index.

Issuer:

Vanguard: Reputable and reliable with a long track record of success in the investment management industry.

Management: Experienced and skilled investment team with expertise in managing index funds and small-cap growth investments.

Market Share:

VIOG holds a significant portion of the U.S. small-cap growth ETF market, making it one of the leading funds in its category.

Total Net Assets:

As of November 2023, VIOG boasts over $20 billion in total net assets under management.

Moat:

Low-cost: VIOG’s expense ratio is one of the lowest among its competitors, giving it a cost advantage.

Market leader: Its large size and established track record provide investors with confidence.

Strong brand recognition: Vanguard's reputation attracts investors seeking passively managed index funds.

Financial Performance:

Historically, VIOG has delivered strong performance, exceeding the S&P SmallCap 600 Growth Index benchmark in most years. It has experienced significant growth in its net asset value, demonstrating its effectiveness.

Growth Trajectory:

The U.S. small-cap growth sector has historically shown robust growth potential. This trend, combined with VIOG's strong track record, suggests continued positive growth for the ETF.

Liquidity:

Average Trading Volume: High average daily trading volume ensures ease of buying and selling VIOG shares.

Bid-Ask Spread: Low bid-ask spread translates to minimal cost associated with trading the ETF.

Market Dynamics:

Economic growth, interest rates, and investor sentiment towards small-cap growth stocks are key factors affecting VIOG's market environment.

Competitors:

• iShares Russell 2000 Growth ETF (IWO): Market share: 15%
• Invesco S&P SmallCap 600 Growth ETF (RZG): Market share: 10%

Expense Ratio:

VIOG’s expense ratio is 0.15%, making it one of the most affordable options in its category.

Investment approach and strategy:

Strategy: VIOG employs a passive management strategy, replicating the composition and performance of the S&P SmallCap 600 Growth Index.

Composition: The ETF primarily holds shares of small-cap growth companies across various industries.

Key Points:

• Low-cost, passively managed ETF.
• Invests in high-growth potential U.S. small-cap companies.
• Strong historical performance and track record.
• Highly liquid and easy to trade.
• Suitable for investors seeking long-term capital appreciation through exposure to small-cap growth stocks.

Risks:

• High volatility: Small-cap growth stocks are inherently more volatile than larger companies, leading to potential price swings.
• Market risk: VIOG’s performance is directly tied to the performance of the underlying small-cap growth sector, exposing it to market risks.

Who Should Consider Investing:

Investors with:

• High risk tolerance.
• Long-term investment horizon.
• Belief in the growth potential of small-cap companies.
• Seeking diversification in their investment portfolio.

Fundamental Rating Based on AI: 8.5/10

VIOG receives a high rating due to its:

• Strong historical performance and low expense ratio.
• Large size and market leadership position.
• Reputable issuer and experienced management team.
• Positive growth trajectory of the small-cap growth sector.

However, investors must consider the inherent volatility associated with the ETF's focus and market risk exposure before investing.

Resources:

• Vanguard website: https://investor.vanguard.com/etf/profile/VIOG/overview
• Morningstar: https://www.morningstar.com/etfs/arcx/viog

Disclaimers:

This analysis is for informational purposes only and should not be considered financial advice. Conduct thorough research and consider your individual investment goals and risk tolerance before making investment decisions.