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
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
Inception | January 2004 |
Total Assets | $4 billion |
Investment Approach | Seeks to track the performance of the MSCI US Small Cap 1750, a broadly diversified index of stocks of smaller U.S. companies. |
Expense Ratio | 0.17% |
Dividend Yield | 1.4% |
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
BE Aerospace
Panera Bread |
Alternatives |
iShares Russell 2000 Index
iShares S&P Small-Cap 600 Index |
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.
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Interested in another easy way to track Vanguard Small-Cap? Add it to your watchlist.