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 Value ETF (NYSE: VBR ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Vanguard Small-Cap Value and see what CAPS investors are saying about the ETF right now.
Vanguard Small-Cap Value facts
|Total Assets||$1.69 billion|
|Investment Approach||Seeks to track the performance of the MSCI US Small Cap Value Index, which is a broadly diversified index of value stocks of smaller U.S. companies.|
|1-Year / 3-Year / 5-Year Return||(7.1%) / 16.8% / (1.3%)|
|Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight||BE Aerospace (Nasdaq: BEAV ) (0.5%)
Ares Capital (Nasdaq: ARCC ) (0.4%)
NCR (NYSE: NCR ) (0.4%)
|Alternatives||iShares Russell 2000 Value Index (NYSE: IWN )
Rydex S&P SmallCap 600 Pure Value (NYSE: RZV )
Sources: Morningstar and Motley Fool CAPS.
On CAPS, 99% of the 216 members who have rated Vanguard Small-Cap Value believe the ETF will outperform the S&P 500 going forward. These bulls include flyingcar and AccountantMike, who is ranked in the top 5% of our community.
Vanguard Small-Cap Value even sports a cheapish expense ratio of 0.23%. That's lower than that of other small-cap value ETFs like iShares Russell 2000 Value (0.40%) and Rydex S&P SmallCap 600 Pure Value (0.35%).
CAPS All-Star AccountantMike elaborates on the bull case:
As every good [F]ool should know, the Fama-French three- factor model predicts that an index of small cap stocks with a low price to book ratio will outperform the broader index over the long term. I strongly recommend that all you [F]ools out there read the works of Eugene Fama, Kenneth French, and Burton Malkiel ... in addition to the Buffett and Graham works recommended by everyone else.
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