VANGUARD SMALL-CAP VALUE ETF

Vanguard Small-Cap Value ETF is an exchange-traded fund that seeks to track the performance of the CRSP US Small Cap Value Index, capturing the investment returns of small-capitalization value stocks. The fund provides broad exposure to smaller companies with value characteristics, typically those with market capitalizations of $15 billion or less, featuring low price-to-earnings and price-to-book ratios. The portfolio comprises over 800 holdings across diverse sectors, with financials and industrials as primary allocations, while maintaining minimal overlap with any single position. Notable holdings include companies such as NRG Energy, Williams-Sonoma, and United Therapeutics. As a Vanguard ETF, it offers a cost-efficient investment approach with an exceptionally low expense ratio of 0.07%, meaning minimal annual fees relative to invested assets. The fund employs market-cap weighting and maintains low portfolio turnover to reduce trading costs and improve tax efficiency. Since adopting its current index methodology in April 2013, the fund has delivered strong risk-adjusted returns, outperforming its category average while maintaining lower volatility than peers. The fund's broad diversification, coupled with its minimal fees, positions it as a compelling option for investors seeking exposure to undervalued smaller companies in the U.S. stock market.