VB: A Tactical Buy In U.S. Small Caps

2026-02-03 10:30:08 ET

Introduction & Thesis

An investor who wants to invest in the small caps sector in the United States, can do so in an indexed way, through the quoted vehicle Vanguard Small-Cap Index Fund ETF ( VB ). This one, tries to capture in a simple way, the profitability of the small capitalization companies of the American market, trying to replicate the behavior of the CRSP US Small Cap Index. By doing this, we can say that it is managed passively, since the replica of the index is carried out using the physical replication approach, where the ETF buys all the companies that own the target index, using their corresponding weights. Understanding how the ETF makes money is easy. If the buying companies raise the price or increase their dividends per share, the ETF investor will earn money via price appreciation and carry (dividend) increase....

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