Vanguard Russell 2000 ETF Price, Forecast, Insider, Ratings, Fundamentals & Signals

What To Buy After You Sell The Russell 2000

Tom Lee, head of research at Fundstrat Global Advisors, thinks the small-cap Russell 2000 could shake off years of underperformance to soar 50% in 2024. Many fund managers expect small-cap stocks to outperform large-cap stocks over the next 12 months due to cheaper valuations and anticipated interest rate cuts.

Launched on 09/22/2010, the Vanguard Russell 2000 ETF (VTWO) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.

There is a growing sense of optimism among small business owners, signaling resilience and adaptability in the face of economic headwinds.

Investors may want to jump into oversold Russell 2000 stocks. For one, after a rough outing in 2023, smaller-cap stocks are starting to come back strong.

VTWO is a low-cost Russell 2000 Index ETF with a 0.10% expense ratio and nearly $8 billion in assets. Unfortunately, it's also low-quality, and its valuation ratios are misleading. P/E ratios for ETFs exclude non-profitable stocks, and they make up 25% of VTWO. Adding them back in results in a weighted average P/E that exceeds Russell 1000 Index ETFs. Less popular ETFs like XSVM and CALF are gaining traction. These funds emphasize two or more factors (value, quality, and momentum). They've outperformed VTWO by 3% per year since 2017.

According to a top Wall Street analyst, small-cap stocks could rise by as much as 60% in 2024. The difference between small-cap and large-cap valuations is the highest it's been in 25 years.

Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Vanguard Russell 2000 ETF (VTWO) is a passively managed exchange traded fund launched on 09/22/2010.

The S&P 500 and Russell 2000 are the primary benchmarks for large-cap and small-cap stocks. A broad international ETF should include companies from developed and emerging markets.

If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the Vanguard Russell 2000 ETF (VTWO), a passively managed exchange traded fund launched on 09/22/2010.