Introduction

The Vanguard Small-Cap Value ETF, known as VBR, is among the notable small-cap ETFs featured here with substantial net assets. Offering reasonable management fees, VBR charges $7 annually for every $10,000 invested in the fund.

Tracking the CRSP US Small Cap Value Index, this ETF focuses on domestic small-cap stocks that demonstrate value characteristics based on financial metrics such as price-to-book (P/B), forward price-to-earnings (P/E), historic P/E, dividend-to-price, and price-to-sales (P/S) ratios.

With the objective to mirror its underlying benchmark, VBR invests in a vast majority of the stocks on the CRSP US Small Cap Value Index, assigning each asset a similar weight as in the index allocation.

Currently holding 835 assets as opposed to the index’s 829, VBR maintains a median market capitalization of $5.6 billion. The fund's total net assets, amounting to $27 billion, are entirely allocated to U.S. companies.

Reflecting on the ETF's composition, an average stock has a P/E ratio of 11.5, a P/B ratio of 1.6, and an annual earnings growth rate of 11.8% over the past five years. Industrial stocks, financials, and consumer discretionary sectors are the top three sectors represented in the fund by weight.

While the ETF's top 10 holdings constitute only 6% of the portfolio, the dominant positions currently include Builders FirstSource (BLDR), Bunge Global (BG), and Booz Allen Hamilton (BAH). Since its inception in January 2004, VBR has delivered an annual total return of 7.9% up to October 31.