Vanguard Russell 2000 ETF offers a well-diversified and low-turnover portfolio that is representative of the U.S. small-cap market. However, indexing this illiquid and volatile space is inherently tricky, and the fund’s index does little to mitigate turnover and the accompanying costs among its smallest holdings. This limits its Morningstar Analyst Rating to Bronze.
Vanguard Russell 2000 ETF VTWO
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Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
Will VTWO outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable VTWO’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the VTWO management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of VTWO’s parent organization’s priorities and whether they’re in line with investors’ interests.
Well-constructed small-cap portfolio.
