2024-05-06 23:25:50 ET
Summary
- Vanguard's Russell 2000 Index Fund ETF warrants a sell rating due to its disadvantages compared to other peer small-cap funds.
- VTWO has underperformed its peers and the S&P 500 over the past decade in terms of performance and has the highest expense ratio of compared small-cap funds.
- While small caps have underperformed the broader market over the past decade, their long-term performance has been superior.
- Small-cap value funds, such as Vanguard Small-Cap Value ETF, maybe a better choice for investors looking for small-cap exposure due to its current valuation and long-term performance trend.
Investment Thesis
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For further details see:
VTWO: Why This Is My Least Favorite Small-Cap Fund