SPSM - VIOO: A Simple Low-Cost Solution For Broad Small-Cap Stock Exposure
2024-05-27 18:59:11 ET
Summary
- VIOO is a small-cap blend ETF providing exposure to the S&P Small-Cap 600 Index. Its 0.10% expense ratio is reasonable, as are alternatives like IJR and SPSM.
- The Index screens new entrants for positive earnings, giving an immediate quality advantage over Russell 2000 Index ETFs that's led to outperformance in 19 of 29 years since 1994.
- VIOO is more value-oriented than most peers. However, it's an "all-weather" ETF because it ranks average or better on all factors, which is how it consistently avoids bottom-quartile performance.
- Still, investors seeking even more exposure to high-quality small-cap stocks should consider VB and SMLF. These ETFs are also broadly-diversified and feature more growth potential than VIOO.