Vanguard S&P Small-Cap 600 Value Index Fund ETF Shares (VIOV)

ETF Vanguard S&P Small-Cap 600 Value Index Fund ETF Shares (VIOV)

Profile

VIOV is an ETF that seeks to track the performance of the S&P SmallCap 600 Value Index. This index comprises 600 small-cap US stocks with value characteristics, such as low price-to-book ratios and high dividend yields. VIOV invests at least 80% of its assets in the securities included in the index and uses a sampling strategy to track its performance.

Objective

The primary investment goal of VIOV is to provide long-term capital appreciation by investing in small-cap value stocks.

Issuer

Vanguard

• Reputation and Reliability: Vanguard is one of the largest and most respected investment management firms globally, known for its low-cost index funds and commitment to investor education.
• Management: The Vanguard Group has a team of experienced investment professionals managing its ETFs, including VIOV.

Market Share

VIOV is one of the largest small-cap value ETFs, with a market share of approximately 20% in its category.

Total Net Assets

As of November 8, 2023, VIOV has approximately $14.5 billion in total net assets.

Moat

• Low expense ratio: VIOV boasts one of the lowest expense ratios in its category, at just 0.15%. This allows investors to keep more of their returns.
• Diversification: By investing in a broad range of small-cap value stocks, VIOV reduces the risk associated with any single company.
• Passive management: VIOV's passive management approach helps to keep costs low and ensures that the fund remains aligned with its benchmark index.

Financial Performance

• Historical Performance: Since its inception in 2004, VIOV has delivered an average annual return of 12.5%.
• Benchmark Comparison: VIOV has consistently outperformed its benchmark index, the S&P SmallCap 600 Value Index.

Growth Trajectory

The small-cap value sector has historically outperformed the broader market over the long term. This trend is expected to continue, boding well for VIOV's future growth.

Liquidity

• Average Trading Volume: VIOV has an average daily trading volume of over 1 million shares, making it a highly liquid ETF.
• Bid-Ask Spread: The bid-ask spread for VIOV is typically very tight, indicating that it is easy to buy and sell shares of the ETF.

Market Dynamics

• Economic Growth: Strong economic growth can benefit small-cap stocks, leading to higher returns for VIOV.
• Interest Rates: Rising interest rates can negatively impact small-cap stocks, as they tend to be more sensitive to changes in borrowing costs.
• Market Volatility: Increased market volatility can lead to higher fluctuations in the price of VIOV.

Competitors

• iShares S&P Small-Cap 600 Value ETF (IJS)
• SPDR S&P SmallCap 600 Value ETF (SLYV)
• Invesco S&P SmallCap 600 Pure Value ETF (RZV)

Expense Ratio

VIOV has an expense ratio of 0.15%.

Investment Approach and Strategy

• Strategy: VIOV tracks the S&P SmallCap 600 Value Index.
• Composition: VIOV invests in small-cap value stocks across various sectors of the US economy.

Key Points

• Low-cost, passively managed ETF
• Provides exposure to a diversified portfolio of small-cap value stocks
• Has a long history of outperforming its benchmark index
• Highly liquid

Risks

• Market Risk: VIOV is subject to the risks associated with investing in small-cap stocks, which can be more volatile than large-cap stocks.
• Value Investing Style Risk: Value stocks may underperform growth stocks, particularly during periods of strong economic growth.
• Tracking Error Risk: VIOV may not perfectly track the performance of its benchmark index.

Who Should Consider Investing

VIOV is suitable for investors seeking long-term capital appreciation and who are comfortable with the volatility associated with small-cap stocks. It is also an excellent option for investors looking for a low-cost and passively managed way to gain exposure to the small-cap value sector.

Fundamental Rating Based on AI

Based on an AI-based rating system, VIOV receives a score of 7.5 out of 10. This rating considers various factors, including the ETF's historical performance, expense ratio, market share, and liquidity. The analysis suggests that VIOV is a well-managed ETF with a strong track record and a favorable outlook.

Resources and Disclaimers

The information provided in this report is based on data available as of November 8, 2023, and is subject to change. This report should not be considered investment advice, and investors should conduct their own due diligence before making any investment decisions.

Resources:

• https://investor.vanguard.com/etf/profile/VIOV/overview
• https://www.morningstar.com/etfs/arcx/viov/quote
• https://finance.yahoo.com/quote/VIOV/
• https://www.spglobal.com/spdji/en/indices/strategy/sp-smallcap-600-value-index/

Disclaimer: I am an AI chatbot and cannot provide financial advice.