Vanguard Extended Market Index Fund ETF Shares (VXF)

Overview

The Vanguard Extended Market Index Fund ETF Shares (VXF) seeks to track the performance of the S&P Completion Index, which represents the performance of small- and mid-cap U.S. companies not included in the S&P 500 Index. It offers investors exposure to a broad range of U.S. stocks beyond the large-cap market, enhancing portfolio diversification. VXF employs a full replication strategy, holding all stocks in the index in proportion to their weighting.

Reputation and Reliability

Vanguard is one of the world's largest investment management companies, known for its low-cost index funds and ETFs. It has a strong reputation for reliability and a long track record of providing consistent investment performance.

Management Expertise

Vanguard has a highly experienced management team with expertise in index fund management. They utilize a disciplined and systematic approach to track the target index efficiently.

Goal

To track the investment performance of the S&P Completion Index.

Investment Approach and Strategy

Strategy: This ETF aims to track the S&P Completion Index, which includes small- and mid-cap companies not in the S&P 500.

Composition VXF primarily holds stocks, reflecting the composition of its target index. It may also hold a small amount of cash or cash equivalents.

Market Share: VXF holds a significant market share within the extended market ETF category.

Total Net Assets (AUM): 14670000000

Key Competitors

• iShares Core S&P Mid-Cap ETF (IJH)
• iShares Core S&P Small-Cap ETF (IJR)
• Schwab Total Stock Market ETF (SCHB)

Competitive Landscape

The extended market ETF industry is competitive, with several ETFs offering similar exposure. VXF's low expense ratio is a major advantage. However, competitors may have slightly different tracking methodologies or investment objectives, potentially leading to different performance outcomes. Total market ETFs such as SCHB also offer access to the entire US market in one fund and thus also compete with VXF.

Historical Performance: Historical performance data should be sourced from financial data providers. Actual values will depend on specific dates. [Data to be sourced from financial data provider]

Benchmark Comparison: VXF's performance closely tracks the S&P Completion Index. Any deviations are primarily due to tracking error and expense ratio.

Expense Ratio: 0.03

Average Trading Volume

The ETF has a high average trading volume, indicating good liquidity.

Bid-Ask Spread

The bid-ask spread is typically tight, reflecting the ETF's liquidity and efficient trading.

Market Environment Factors

Economic growth, interest rates, and investor sentiment towards small- and mid-cap stocks significantly influence VXF's performance. Strong economic growth typically benefits smaller companies, driving their stock prices higher.

Growth Trajectory

VXF's growth trajectory is tied to the performance of the broader U.S. stock market, particularly the small- and mid-cap segments. Changes to the S&P Completion Index can affect holdings.

Competitive Edge

VXF benefits from Vanguard's reputation for low-cost investing and efficient index tracking. Its extremely low expense ratio gives it a competitive advantage. The fund's broad diversification across small- and mid-cap companies reduces risk. Finally, Vanguard's scale and established brand provide investor confidence.

Volatility

VXF's volatility is expected to be higher than the S&P 500 due to the inclusion of smaller, more volatile companies.

Market Risk

VXF is subject to market risk, meaning its value can fluctuate based on overall market conditions and the performance of its underlying holdings. Small- and mid-cap stocks can be more sensitive to economic downturns.

Ideal Investor Profile

VXF is suitable for investors seeking broad exposure to the U.S. stock market beyond large-cap companies, particularly those looking to diversify their portfolio with small- and mid-cap stocks.

Market Risk

VXF is best for long-term investors who are comfortable with the higher volatility associated with small- and mid-cap stocks. It is also suitable for passive index followers.

Vanguard Extended Market Index Fund ETF Shares (VXF) offers low-cost, diversified exposure to the U.S. small- and mid-cap stock market, tracking the S&P Completion Index. Its extremely low expense ratio and Vanguard's reputation make it an attractive option for long-term investors seeking to broaden their portfolio beyond large-cap stocks. While it offers broad diversification, its returns are sensitive to economic conditions and the performance of smaller companies. Investors should be aware of its potential for higher volatility compared to large-cap focused funds. VXF is best suited for those who have long investment horizons and can tolerate short-term fluctuations in value.

Data Sources:

• Vanguard
• iShares
• Schwab
• Morningstar
• ETFdb.com

Disclaimers:

This analysis is for informational purposes only and does not constitute investment advice. Investment decisions should be based on your own research and risk tolerance.