VBR ETF

Forecast: This Vanguard ETF is expected to do better than the S&P 500 in the coming year.

These two affordable Vanguard growth ETFs might provide impressive returns for investors looking to invest for the long term.

The Vanguard Real Estate ETF owns 155 stocks, most of them real estate investment trusts. The Vanguard Small-Cap Value ETF owns 848 stocks with relatively small market caps and attractive valuations.

VBR is a value small-cap ETF that was launched in 2004 and tracks the CRSP US Small Cap Value Index. CRSP's methodology is sophisticated, but the ETF's performance could be indicative of a flaw in the absence of a simpler traditional value bias factor. But most importantly, it has underperformed both the broad market and its vanilla and growth counterparts.

Vanguard Small-Cap Value Index Fund ETF appears to be the most popular choice for investors seeking diversified access to small-cap value stocks. We highlight VBR's key characteristics in relation to the next largest peer, the actively managed- AVUV. Even though VBR may not be an ideal buy, we highlight a few reasons why the ETF may still do well.

The "Magnificent Seven" have been major drivers of stock market returns in recent years. Value and small-cap stocks are trading at extremely low valuations compared to large caps.

For investors seeking momentum, Vanguard Small-Cap Value ETF VBR is probably on the radar. The fund just hit a 52-week high and is up 33% from its 52-week low price of $148.75/share.

If you're interested in broad exposure to the Small Cap Value segment of the US equity market, look no further than the Vanguard Small-Cap Value ETF (VBR), a passively managed exchange traded fund launched on 01/26/2004.

The S&P 500 Equal Weight Index has shown relative weakness compared to the cap-weighted index, but small-cap value stocks are performing well. The Vanguard Small-Cap Value Index Fund ETF Shares is close to its all-time high and has outperformed the Russell 2000 ETF in recent years. VBR has wavered in the current quarter due to soft returns in value-heavy sectors, but it still has a low valuation and a solid technical chart.