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
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||
iShares Russell 2000 Value Index
Rydex S&P SmallCap 600 Pure Value
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.
Having gotten on board last year, flyingcar offered a rather simple reason to look into the ETF: "Small Cap Value historically does better over the long term."
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.
What do you think about Vanguard Small-Cap Value, 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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