Vanguard Small-Cap ETF (VB): A Comprehensive Guide

Vanguard Small-Cap ETF (VB) is a passively managed exchange-traded fund with $64.97 billion in assets. It aims to match the Small Cap Blend segment of the US equity market and has a 12-month trailing dividend yield of 1.36%. The ETF has a 0.05% expense ratio and a beta of 1.07, making it a medium-risk choice. It has a Zacks ETF Rank of 2 (Buy) and effectively diversifies company-specific risk with about 1354 holdings.

The Vanguard Small-Cap ETF (VB) is a prominent passively managed exchange-traded fund (ETF) with $64.97 billion in assets, launched on January 26, 2004. Sponsored by Vanguard, this ETF aims to provide broad exposure to the Small Cap Blend segment of the U.S. equity market by tracking the CRSP US Small Cap Index. With an expense ratio of 0.05%, it is one of the least expensive options in the space, making it an attractive choice for cost-conscious investors.

The ETF seeks to replicate the performance of the CRSP US Small Cap Index, which includes U.S. companies with market capitalizations between $2 billion and $10 billion. This index focuses on small-cap companies, which offer high potential for growth but come with higher risk due to their smaller size. The ETF's 12-month trailing dividend yield stands at 1.36%, providing investors with a steady stream of income.

VB's sector exposure is heavily skewed towards Industrials, with a 20.90% allocation, followed by Financials and Information Technology. Top individual holdings include Slcmt1142, Nrg Energy Inc (NRG), and Expand Energy Corp (EXE). The ETF's transparency allows investors to view its daily holdings, providing insight into its composition and diversification.

In terms of performance, VB has gained about 2.09% so far this year and approximately 14.26% over the past year (as of July 10, 2025). The ETF's beta of 1.07 and standard deviation of 20.67% for the trailing three-year period indicate medium risk, making it a suitable option for investors seeking a balanced risk-return profile. With about 1354 holdings, VB effectively diversifies company-specific risk.

The Zacks ETF Rank of 2 (Buy) further supports VB as an outstanding choice for investors seeking exposure to the Small Cap Blend segment of the market. This rank is based on expected asset class return, expense ratio, and momentum, among other factors. While there are alternative ETFs like the iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR), VB's low cost and strong performance make it a compelling option.

In conclusion, the Vanguard Small-Cap ETF (VB) is a well-diversified, low-cost ETF that provides exposure to the Small Cap Blend segment of the U.S. equity market. Its medium-risk profile and strong performance make it an attractive option for investors seeking a balance between growth potential and risk management.

References:
[1] https://finance.yahoo.com/news/vanguard-small-cap-etf-vb-102005987.html
[2] https://finance.yahoo.com/quote/VB/
[3] https://www.bankrate.com/investing/best-dividend-etfs/