VXF - VXF: A Cheap Way To Add Small Cap Exposure
2024-07-13 13:14:47 ET
Summary
- Vanguard Extended Market Index Fund ETF Shares has underperformed SPDR S&P 500 ETF in 2024.
- VXF is tilted towards small-and-medium capitalization stocks, spread across over 3 500 holdings.
- Future Federal Reserve policy is likely to be beneficial for VXF holdings.
- VXF offers a high single-digit return with a negligible expense ratio of 0.06%.
- The outsized exposure small-and-mid-cap companies have to the U.S. economy is a key risk to consider.
Introduction
The Vanguard Extended Market Index Fund ETF ( VXF ) has lagged the SPDR S&P 500 ETF ( SPY ) so far in 2024, delivering a 7% total return against the almost 18% gain achieved by the S&P 500 ETF:
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VXF: A Cheap Way To Add Small Cap Exposure