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 Growth ETF
With that in mind, let's take a closer look at Vanguard Small-Cap Growth and see what CAPS investors are saying about the ETF right now.
Vanguard Small-Cap Growth facts
|Total Assets||$1.88 billion|
|Investment Approach||Seeks to track the performance of the MSCI US Small Cap Growth Index, a broadly diversified index of growth stocks of smaller U.S. companies.|
|1-Year / 3-Year / 5-Year Annual Returns||8.6% / 26.1% / 4.1%|
|Major Holdings With High CAPS Interest (at least 1,000 Active Picks) and Portfolio Weight||
Level 3 Communications
iShares Russell 2000 Growth
iShares S&P SmallCap 600 Growth
Sources: Morningstar and Motley Fool CAPS.
Vanguard Small-Cap Growth, in particular, sports a cheap expense ratio of 0.12%. That's lower than that of other small-cap growth ETFs like iShares Russell 2000 Growth (0.25%) and iShares S&P SmallCap 600 Growth (0.25%).
I have a hunch that this fund will outperform the market over the next 2 or 3 months especially, due to the famous "January effect" -- where small cap stocks outperform larger caps in January as the stock market rises (usually chalked up to security sales in December and repurchases in January, for tax reasons). Beyond that time frame the rationale behind the bullish view is simply that over long periods of time, small-caps outperform large-caps.
What do you think about Vanguard Small-Cap Growth, 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!
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Panera. Motley Fool newsletter services have recommended buying shares of Panera. Try any of our Foolish newsletter services free for 30 days.