Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Vanguard Small-Cap ETF (NYSE: VB ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Vanguard Small-Cap and see what CAPS investors are saying about the ETF right now.
Vanguard Small-Cap facts
||Seeks to track the performance of the MSCI US Small Cap 1750, a broadly diversified index of stocks of smaller U.S. companies.
|1-Year/ 3-Year / 5-Year Annualized Returns
||11.5% / 21.4% / 3.1%
|Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight
American Capital Agency (Nasdaq: AGNC ) (0.29%)
BE Aerospace (Nasdaq: BEAV ) (0.24%)
Panera Bread (Nasdaq: PNRA ) (0.22%)
iShares Russell 2000 Index (NYSE: IWM )
iShares S&P Small-Cap 600 Index (NYSE: IJR )
Sources: Morningstar and Motley Fool CAPS.
On CAPS, 90.5% of the 147 members who have rated Vanguard Small-Cap believe the ETF will outperform the S&P 500 going forward. These bulls include Zen1212 and acegdl007.
Last year, Zen1212 succinctly summed up the investment case: "If you're looking for a way to get into small caps but are concerned about the risks and volatility of small cap stocks, this is a good way to diversify a portfolio and spread the risk out."
Vanguard Small-Cap, in particular, sports a low expense ratio of just 0.17%. That's cheaper than that of other small-cap ETF plays like iShares Russell 2000 (0.26%) and iShares S&P Small-Cap 600 (0.20%).
CAPS member acegdl007 expands on the outperform argument:
Vanguard started offering this about 6 years ago as an ETF version of its Small Cap mutual fund. ... Vanguard has a great reputation for offering attractive funds and ETF's with some of the lowest management costs and fees. This is a great ETF/fund to include in a 401k portfolio that will add a comfortable dose of risk with potential for good growth in the long term.
What do you think about Vanguard Small-Cap, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Vanguard Small-Cap? Add it to your watchlist.