Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Vanguard S&P Small-Cap 600 Index Fund ETF Shares (VIOO Quick QuoteVIOO - Free Report) is a passively managed exchange traded fund launched on September 9, 2010.

The fund is sponsored by Vanguard. It has amassed assets over $3.85 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

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.

Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector -- about 17.9% of the portfolio. Industrials and Information Technology round out the top three.

Looking at individual holdings, Slcmt1142 accounts for about 0.63% of total assets, followed by Eastman Chemical Co (EMN) and Element Solutions Inc (ESI).

The top 10 holdings account for about 2.71% 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 added roughly 16.34% so far this year and is up about 34.43% in the last one year (as of 05/27/2026). In the past 52-week period, it has traded between $96.94 and $129.09.

The ETF has a beta of 1.04 and standard deviation of 20.19% for the trailing three-year period, making it a medium risk choice in the space. With about 611 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard S&P Small-Cap 600 Index Fund ETF Shares 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, 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 Vanguard Small-Cap Index Fund ETF Shares (VB) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While Vanguard Small-Cap Index Fund ETF Shares has $78.53 billion in assets, iShares Core S&P Small-Cap ETF has $104.22 billion. VB has an expense ratio of 0.03% and IJR charges 0.06%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also 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.