VB ETF

The Vanguard Small-Cap ETF (VB) was introduced on January 26, 2004. It is a passively managed exchange-traded fund that aims to provide wide access to the Small Cap Blend part of the US stock market.

For investors seeking momentum, Vanguard Small-Cap ETF VB is probably on the radar. The fund just hit a 52-week high and is up 38.6% from its 52-week low price of $174.84/share.

VB delivered a 28% return last year, offering diversification, though it slightly underperformed the S&P 500. I maintain a "buy" rating for VB, seeing a favorable environment for small US stocks as we move into Q4. I believe small-cap stocks can continue to deliver positive returns because they will benefit from lower interest rates and often perform well post-US presidential elections.

These funds aren't doing well this year, but they could be great buys heading into 2025.

Rate cuts typically benefit small and mid-cap stocks due to their higher financing needs. These Vanguard ETFs offer targeted exposure to potentially outperforming market segments.

A recent increase in the M2 money supply might indicate a larger rise in the stock market. Two Vanguard ETFs are particularly set to benefit from this potential market growth.

Fed officials are hinting at upcoming interest-rate reductions. Small and mid-cap stocks typically outperform in low-rate environments.

Vanguard Large-Cap ETF rose a huge 14% in the first six months of 2024. Vanguard Small-Cap ETF lagged far behind, gaining just 2%.

Small-caps are signaling economic trouble, but also offer outperformance potential. Vanguard Small-Cap Index Fund ETF mirrors CRSP U.S. Small Cap Index with low-cost and high diversification. VB has diverse holdings, with Industrials as the top sector, outperforming IWM and offering high growth potential.