Designed to provide broad exposure to the Small Cap Value segment of the US equity market, the Vanguard Russell 2000 Value ETF (VTWV Quick QuoteVTWV - Free Report) is a passively managed exchange traded fund launched on September 22, 2010.

The fund is sponsored by Vanguard. It has amassed assets over $873.77 million, making it one of the average sized ETFs attempting to match the Small Cap Value segment of the US equity market.

Why Small Cap Value

There's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.

Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.1%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.75%.

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 Financials sector -- about 25.7% of the portfolio. Industrials and Real Estate round out the top three.

Looking at individual holdings, Oklo Inc (OKLO) accounts for about 0.81% of total assets, followed by Echostar Corp (SATS) and Slbbh1142

Performance and Risk

VTWV seeks to match the performance of the Russell 2000 Value Index before fees and expenses. The Russell 2000 Value Index measures the performance of the small-cap value segment of the U.S. equity universe.

The ETF has added about 13.41% so far this year and is up about 4.55% in the last one year (as of 12/04/2025). In the past 52-week period, it has traded between $116.09 and $161.99.

The ETF has a beta of 1.05 and standard deviation of 21.26% for the trailing three-year period, making it a medium risk choice in the space. With about 1450 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard Russell 2000 Value ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VTWV is an outstanding option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.

The iShares Russell 2000 Value ETF (IWN) and the Vanguard Small-Cap Value ETF (VBR) track a similar index. While iShares Russell 2000 Value ETF has $11.96 billion in assets, Vanguard Small-Cap Value ETF has $31.98 billion. IWN has an expense ratio of 0.24% and VBR charges 0.07%.

Bottom-Line

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

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.