VOO - The Vanguard Small-Cap ETF: A Great Way To Diversify Your Mega-Cap Portfolio
- The Vanguard Small-Cap ETF has a median market-cap of $6.5 billion - just a sliver of the S&P500 VOO ETF's median market-cap of $195.8 billion.
- VB sells at a significantly lower valuation level than the S&P500 - but also a significantly lower ROE and earnings growth rate. That's the trade-off.
- Yet investors might be surprised to know that over the past year, the VB small-cap ETF has outperformed both the S&P500 and the QQQ's.
- That being the case, VB is an excellent way for investors who are significantly over-weighted in typical mega-cap technology stocks to more fully diversify their portfolios.
For further details see:
The Vanguard Small-Cap ETF: A Great Way To Diversify Your Mega-Cap Portfolio