Vanguard Small-Cap ETF Insights: Factor Exposure Analysis

Vanguard Small-Cap ETF report highlights various investing factors. It shows moderate value exposure but low scores in quality and low volatility factors, suggesting cautious investor sentiment.

Date: 04-01-2025

AI Rating: 5

**Vanguard Small-Cap ETF Overview**

The Validea report on the Vanguard Small-Cap ETF (VB) outlines its exposure to key investing factors: value, momentum, quality, and low volatility. The ETF shows a strong focus in the Services sector and is categorized as a Mid-Cap Value ETF.

**Factor Analysis**

The factor scores provided in the report reveal the following:

Value: 59 - This score indicates a moderate level of value exposure, which can be appealing for investors seeking value investments.
Momentum: 45 - A low momentum score potentially signals weaker past performance, making it less attractive for investors focused on momentum trading.
Quality: 24 - The low quality score may concern investors as it suggests that the underlying holdings could be of lower financial health or stability.
Low Volatility: 24 - Similarly, the low score in low volatility indicates that the ETF may experience significant fluctuations, which could deter risk-averse investors.

Given the overall factor exposure, VB could attract value-oriented investors; however, the low scores in quality and volatility could lead to caution regarding potential risks, affecting its attractiveness in the short term.

Stocks: VB