Vanguard Russell 1000 ETF (VONE): An Investor's Look

Vanguard Russell 1000 ETF (VONE) offers low costs and strong performance metrics, making it a solid choice for diversified investment in large-cap stocks. Investors appreciate its expense ratio and sizable asset base, promising good value.

Date: 02-02-2025

AI Rating: 7

Market Capitalization and Stability
The Vanguard Russell 1000 ETF primarily focuses on companies with market capitalizations exceeding $10 billion. Such companies are generally stable, have predictable cash flows, and tend to demonstrate lower volatility compared to smaller firms, making VONE an attractive option in a fluctuating market.

Expense Ratio and Dividend Yield
This ETF's annual operating expenses are notably low at 0.08%, which is quite impressive. The importance of expense ratios cannot be overstated, as lower costs can lead to significantly higher long-term returns. With a 12-month trailing dividend yield of 1.16%, VONE also provides investors with a modest income stream.

Performance Metrics
VONE has performed admirably, with a year-to-date return of approximately 3.46% and an impressive annual return of 24.88%. This performance suggests that it is successfully tracking the Russell 1000 Index, which includes a broad spectrum of U.S. large-cap stocks. The ETF has shown a stable range of $222.72 to $277.79 in the last year, adding to investor confidence.

Risk Assessment
With a beta of 1.02 and a standard deviation of 17.50%, VONE is classified as a medium-risk fund. This level of risk may appeal to conservative investors, as it offers a balance between growth potential and stability.

Sector Exposure
VONE's highest allocation to the Information Technology sector (29.50%) indicates a strong tilt towards this growth-oriented sector. With major holdings in Apple Inc (AAPL), Nvidia Corp (NVDA), and Microsoft Corp (MSFT), investors align their exposure with some of the biggest players in the tech industry.

Overall Impression
Given its low costs, diverse holdings, solid performance, and risk profile, VONE represents a compelling option for investors seeking long-term growth in the large-cap blend space. The ETF's Zacks ETF Rank of 2 (Buy) underscores its potential within the market.

Stocks: VONE AAPL NVDA MSFT IVV SPY