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Should Vanguard S&P Small-Cap 600 ETF (VIOO) Be on Your Investing Radar?
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Launched on 09/09/2010, the Vanguard S&P Small-Cap 600 ETF (VIOO - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $2.14 billion, making it one of the larger ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
With more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.45%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 17.90% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Rambus Inc. (RMBS - Free Report) accounts for about 0.79% of total assets, followed by Sps Commerce Inc. (SPSC - Free Report) and Comfort Systems Usa Inc. (FIX - Free Report) .
The top 10 holdings account for about 6.03% of total assets under management.
Performance and Risk
VIOO seeks to match the performance of the S&P SmallCap 600 Index before fees and expenses. The S&P SmallCap 600 Index represents the small-cap segment of the U.S. equity market.
The ETF has gained about 4.26% so far this year and is down about -2.15% in the last one year (as of 08/23/2023). In the past 52-week period, it has traded between $80.61 and $98.71.
The ETF has a beta of 1.15 and standard deviation of 22.66% for the trailing three-year period, making it a medium risk choice in the space. With about 601 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P Small-Cap 600 ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VIOO is a great option for investors seeking exposure to the Style Box - Small Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 2000 ETF (IWM - Free Report) and the iShares Core S&P Small-Cap ETF (IJR - Free Report) track a similar index. While iShares Russell 2000 ETF has $53.11 billion in assets, iShares Core S&P Small-Cap ETF has $69.04 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should Vanguard S&P Small-Cap 600 ETF (VIOO) Be on Your Investing Radar?
Launched on 09/09/2010, the Vanguard S&P Small-Cap 600 ETF (VIOO - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $2.14 billion, making it one of the larger ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
With more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.45%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 17.90% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Rambus Inc. (RMBS - Free Report) accounts for about 0.79% of total assets, followed by Sps Commerce Inc. (SPSC - Free Report) and Comfort Systems Usa Inc. (FIX - Free Report) .
The top 10 holdings account for about 6.03% of total assets under management.
Performance and Risk
VIOO seeks to match the performance of the S&P SmallCap 600 Index before fees and expenses. The S&P SmallCap 600 Index represents the small-cap segment of the U.S. equity market.
The ETF has gained about 4.26% so far this year and is down about -2.15% in the last one year (as of 08/23/2023). In the past 52-week period, it has traded between $80.61 and $98.71.
The ETF has a beta of 1.15 and standard deviation of 22.66% for the trailing three-year period, making it a medium risk choice in the space. With about 601 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P Small-Cap 600 ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VIOO is a great option for investors seeking exposure to the Style Box - Small Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 2000 ETF (IWM - Free Report) and the iShares Core S&P Small-Cap ETF (IJR - Free Report) track a similar index. While iShares Russell 2000 ETF has $53.11 billion in assets, iShares Core S&P Small-Cap ETF has $69.04 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.