Vanguard Russell 2000 Index Fund ETF Shares (VTWO)

Overview of Vanguard Russell 2000 Index Fund ETF Shares (VTWO)

Profile:

VTWO is an exchange-traded fund (ETF) that tracks the performance of the CRSP US Small Cap Index. This index comprises approximately 2,000 small-cap stocks, representing the bottom 10% of the US stock market by market capitalization. VTWO aims to provide broad exposure to small-cap companies across various sectors.

Investment Objective:

The primary goal of VTWO is to track the return of the CRSP US Small Cap Index, net of expenses. It seeks to achieve this objective by investing in a representative sample of the securities included in the index.

Issuer:

Vanguard is a leading global investment management company known for its low-cost index funds and ETFs. It boasts a strong reputation for reliability and a long track record of success.

Market Share:

VTWO is the largest small-cap ETF by assets under management, with a significant market share in this segment.

Total Net Assets:

As of November 2023, VTWO has over $60 billion in total net assets.

Moat:

VTWO's competitive advantages include:

• Low expense ratio: VTWO has a low expense ratio of 0.07%, making it one of the most affordable small-cap ETFs available.
• Strong track record: VTWO has consistently outperformed its benchmark index over the long term.
• Liquidity: VTWO is one of the most liquid small-cap ETFs, with an average daily trading volume of over 10 million shares.

Financial Performance:

VTWO has generated strong returns over various timeframes, outperforming its benchmark index.

Growth Trajectory:

The small-cap market is expected to continue growing over the long term, benefiting VTWO's performance.

Liquidity:

VTWO has high liquidity, with an average daily trading volume exceeding 10 million shares. Bid-ask spreads are typically tight, indicating low transaction costs.

Market Dynamics:

Factors affecting VTWO's market environment include economic growth, interest rate changes, and investor sentiment towards small-cap stocks.

Competitors:

Key competitors include iShares Russell 2000 ETF (IWM) and SPDR Russell 2000 ETF (IWM).

Expense Ratio:

VTWO's expense ratio is 0.07%.

Investment approach and strategy:

VTWO passively tracks the CRSP US Small Cap Index, investing in a representative sample of the index constituents.

Key Points:

• VTWO offers broad exposure to small-cap stocks at a low cost.
• It has a strong track record of outperforming its benchmark index.
• VTWO is a highly liquid ETF with tight bid-ask spreads.

Risks:

VTWO is subject to market risk, interest rate risk, and volatility risk. Small-cap stocks are generally more volatile than large-cap stocks.

Who Should Consider Investing:

VTWO is suitable for investors seeking long-term growth potential and diversification with exposure to small-cap stocks.

Fundamental Rating Based on AI: 8/10

Based on an AI-powered analysis, VTWO receives a rating of 8 out of 10. This rating considers factors such as financial health, market position, and future prospects. The AI model highlights VTWO's strong track record, low expense ratio, and liquidity as key strengths. However, it also acknowledges the inherent volatility associated with small-cap stocks.

Resources:

• Vanguard website: https://investor.vanguard.com/etf/profile/VTWO/overview
• Morningstar: https://www.morningstar.com/etfs/arcx/vtwo/quote
• ETF.com: https://www.etf.com/VTWO

Disclaimer:

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