VTWO
Vanguard Russell 2000 ETF
📎 Investment Objective
The Vanguard Russell 2000 ETF seeks to track the performance of the Russell 2000 Index, which measures the small-capitalization segment of the U.S. equity market.
Overview
ETF tracking Vanguard Russell 2000 ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Vanguard Russell 2000 ETF seeks to track the performance of the Russell 2000 Index, which measures the small-capitalization segment of the U.S. equity market.
🎯 Investment Strategy
The ETF employs a passively managed, full-replication approach, attempting to replicate the Russell 2000 Index by holding all the securities in the index in approximately the same proportions.
✨ Key Features
- Provides exposure to small-cap U.S. stocks, which can offer the potential for higher long-term growth but also higher volatility
- Diversified portfolio of approximately 2,000 small-cap companies across a variety of sectors
- Low expense ratio of 0.00%, making it a cost-effective way to gain small-cap exposure
- Tracks the well-known Russell 2000 Index, a widely followed benchmark for small-cap U.S. equities
⚠️ Primary Risks
- Higher volatility and risk compared to large-cap or mid-cap stocks
- Potential for higher short-term losses during market downturns
- Concentration in a specific market capitalization segment
- Tracking error risk, as the fund may not perfectly replicate the index performance
👤 Best For
The Vanguard Russell 2000 ETF may be suitable for investors seeking long-term capital appreciation and who are willing to accept the higher risk and volatility associated with small-cap stocks. It can be a core holding in a diversified portfolio or used as a tactical allocation to the small-cap segment of the market.