About VBK ETF
VBK is a great choice for investors looking for low-cost, solid exposure to the US small-cap growth market. The fund switched from an MSCI index to a CRSP index in April 2013, but the portfolio still closely resembles our MSCI benchmark, with few sector biases and similar performance. VBK offers solid coverage in an efficient, liquid wrapper and features on our opportunities list.
ETF Name: Vanguard Small-Cap ETF (VBK)
Sector: VBK has invested in Technology (25%), Healthcare (19%), Consumer Cyclical (15%), Industrials (14%) and Real Estate (9%).
Geography: VBK has invested 100% of its assets in U.S.
Fund Manager Name: Vanguard
ETF Description: VBK seeks to replicate a benchmark which offers exposure small cap firms that exhibit growth characteristics in the U.S. equity market. VBK holds close to 1,000 securities in total and doesn't hold more than 0.6% in one asset.
What ETFdb says about it: The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts.
Why is that Kristal there: A complete pool of 2100+ ETFs are screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta and R-Squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the inhouse research / quant analysts team. With a large, stable asset base and a tiny expense ratio, VBK is cheap to hold, easy to trade, and delivers good coverage of its target market. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.
Fund Manager Description: Founded in 1975, Vanguard is the second largest asset manager in the world managing $5.1T. It is the largest provider of mutual funds and the second-largest provider of exchange-traded funds (ETFs) in the world after BlackRock iShares.
VBK: Vanguard Small-Cap Growth ETF