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
|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.|
|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
iShares Russell 2000 Index
iShares S&P Small-Cap 600 Index
Sources: Morningstar and Motley Fool CAPS.
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.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Panera. Try any of our Foolish newsletter services free for 30 days.