Average Daily Volume
322.1K
Fund Overview
The Vanguard Small-Cap Growth ETF (VBK) is an exchange-traded fund that seeks to track the performance of the CRSP US Small Cap Growth Index. This index measures the investment return of small-cap growth stocks in the United States. VBK provides investors with exposure to a diversified portfolio of small-cap companies that exhibit growth characteristics, such as higher earnings growth rates and higher valuations relative to the broader market. The fund is passively managed, aiming to replicate the index's performance with low expense ratios, making it a cost-effective option for investors seeking growth opportunities in the small-cap segment. VBK is suitable for long-term investors who are comfortable with the higher volatility typically associated with small-cap stocks.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
Yes
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 0.51 %
- Currency Hedged
-
No
- Portfolio Turnover
-
21 %
- Dividend Date
-
Why Invest in the VBK ETF?
Potential Benefits
- Provides exposure to high-growth potential small-cap companies that may outperform larger peers over the long term.
- Low expense ratio (0.07% as of 2025) enhances net returns for investors compared to actively managed funds.
- Diversification across numerous small-cap growth stocks reduces single-stock risk.
- Passive management approach minimizes turnover and associated transaction costs.
- Liquidity as an ETF allows for easy trading throughout market hours.
Potential Risks
- Small-cap stocks are generally more volatile than large-cap stocks, leading to higher price fluctuations.
- Growth stocks may underperform during periods of rising interest rates or economic downturns.
- Limited international exposure; performance is tied solely to U.S. small-cap growth stocks.
- Higher sensitivity to economic cycles compared to more stable, value-oriented small-cap funds.
- Potential liquidity constraints in underlying holdings could impact trading efficiency during market stress.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+3.6%
|
+2.4%
|
-5.5%
|
+10.8%
|
+6.2%
|
+3.0%
|
-6.9%
|
+2.9%
|
-3.5%
|
+2.8%
|
-
|
-
|
| 2025 |
+4.2%
|
-6.3%
|
-7.8%
|
-1.5%
|
+6.4%
|
+5.1%
|
+2.0%
|
+3.8%
|
+1.7%
|
+2.0%
|
+0.1%
|
-0.5%
|
| 2024 |
-2.9%
|
+8.0%
|
+3.0%
|
-7.3%
|
+3.5%
|
+0.1%
|
+4.5%
|
0.0%
|
+2.4%
|
-0.2%
|
+13.1%
|
-7.0%
|
| 2023 |
+11.7%
|
-2.3%
|
-0.9%
|
-1.3%
|
0.0%
|
+7.7%
|
+4.2%
|
-4.2%
|
-6.5%
|
-7.1%
|
+9.8%
|
+10.9%
|
| 2022 |
-12.8%
|
-0.3%
|
+1.3%
|
-11.0%
|
-2.8%
|
-8.0%
|
+11.7%
|
-2.4%
|
-9.0%
|
+7.0%
|
+2.7%
|
-6.3%
|
| 2021 |
+2.2%
|
+3.0%
|
-2.4%
|
+3.6%
|
-2.7%
|
+4.7%
|
-1.3%
|
+2.0%
|
-3.9%
|
+5.5%
|
-6.1%
|
+1.7%
|
| 2020 |
-0.3%
|
-6.8%
|
-18.5%
|
+16.4%
|
+10.8%
|
+3.0%
|
+5.9%
|
+3.4%
|
-1.5%
|
+0.9%
|
+14.2%
|
+8.3%
|
| 2019 |
+12.6%
|
+5.8%
|
+0.4%
|
+3.3%
|
-6.4%
|
+7.3%
|
+1.8%
|
-2.4%
|
-1.5%
|
+1.5%
|
+6.2%
|
+1.5%
|
| 2018 |
+3.9%
|
-3.2%
|
+1.5%
|
+0.3%
|
+5.8%
|
+1.2%
|
+1.0%
|
+7.0%
|
-1.2%
|
-11.4%
|
+2.0%
|
-10.7%
|
| 2017 |
+2.7%
|
+2.7%
|
+0.5%
|
+1.4%
|
+0.4%
|
+2.0%
|
+1.4%
|
-0.4%
|
+3.9%
|
+2.3%
|
+3.1%
|
+0.3%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
DECK
|
DECKERS OUTDOOR CORP |
0.8 % |
|
DKNG
|
DRAFTKINGS INC ORDINARY SHARES CLASS A |
0.8 % |
|
FWONK
|
n/a |
0.8 % |
|
NTRA
|
NATERA INC |
0.8 % |
|
NTNX
|
NUTANIX INC CLASS A |
0.8 % |
|
LII
|
LENNOX INTERNATIONAL INC |
0.7 % |
|
PTC
|
PTC INC |
0.7 % |
|
HOOD
|
ROBINHOOD MARKETS INC CLASS A |
0.7 % |
|
WSO
|
WATSCO INC ORDINARY SHARES |
0.7 % |
|
TOST
|
TOAST INC CLASS A |
0.7 % |
Top 10 holdings shown, out of 592 total holdings.
Related ETFs: VBK vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VBK employs a passive investment strategy, seeking to track the CRSP US Small Cap Growth Index. This index uses a multi-factor methodology to identify small-cap growth stocks, screening for companies with higher book-to-price ratios, higher forecasted earnings growth, and higher historical earnings growth compared to the broader small-cap universe. The index is reconstituted annually and rebalanced quarterly to maintain its growth characteristics. VBK holds approximately 500-600 small-cap stocks, primarily common equities, with sector weights that reflect the underlying index. The fund uses full replication (holding all index constituents) when practical and sampling techniques when necessary to balance tracking accuracy with cost efficiency.
Frequently Asked Questions
What is the difference between VBK and VBR?
VBK focuses on small-cap growth stocks, while VBR (Vanguard Small-Cap Value ETF) invests in small-cap value stocks. Growth stocks typically have higher earnings growth but higher valuations, while value stocks are often priced lower relative to fundamentals.
How often does VBK rebalance its holdings?
VBK's underlying index is rebalanced quarterly, with a full reconstitution annually to maintain its growth characteristics. The fund typically adjusts its holdings accordingly.
Is VBK suitable for income-focused investors?
No, VBK is primarily focused on capital appreciation. Small-cap growth stocks generally pay little or no dividends, making the fund more appropriate for growth-oriented investors.
What percentage of VBK's holdings are in technology stocks?
As of 2025, approximately 25-30% of VBK's portfolio is allocated to technology stocks, though this varies with market conditions and index composition changes.
Industry Overview
The Vanguard Small-Cap Growth ETF (VBK) invests in the dynamic small-cap growth segment of the U.S. equity market. Small-cap growth companies (typically with market capitalizations between $300 million and $2 billion) are often in earlier stages of development, offering higher growth potential but also greater volatility than established large-cap firms. This segment tends to perform well during economic expansions when investors favor companies with strong earnings momentum. However, these stocks can be more sensitive to interest rate changes and macroeconomic shifts. VBK's focus on growth-oriented small caps makes it a strategic holding for investors seeking capital appreciation, though it should be balanced with other asset classes for risk management.
Alternative Comparison
Compared to similar small-cap growth ETFs like iShares Russell 2000 Growth ETF (IWO) and SPDR S&P 600 Small Cap Growth ETF (SLYG), VBK stands out for its lower expense ratio (0.07% vs. 0.24% for IWO and 0.15% for SLYG). While IWO tracks the Russell 2000 Growth Index (which includes slightly larger companies on average), VBK's CRSP-based approach may capture a broader range of growth opportunities. SLYG, tracking the S&P 600 Growth Index, applies stricter profitability requirements than VBK's methodology. Unlike some competitors that use optimization techniques, VBK aims for full replication when possible, potentially reducing tracking error.
Issuer Overview
Vanguard is one of the world's largest investment management companies, known for its client-owned structure, low-cost index funds, and long-term investment philosophy. Founded by John C. Bogle in 1975, Vanguard pioneered index investing for individual investors. The firm manages over $8 trillion in global assets (as of 2025) and is recognized for its investor-first approach, evidenced by consistently low expense ratios across its ETF lineup. Vanguard's ETFs, including VBK, are designed to provide transparent, tax-efficient access to various market segments.
Conclusion
The Vanguard Small-Cap Growth ETF (VBK) offers cost-efficient exposure to the high-growth potential small-cap segment of the U.S. market. Its passive approach, tied to the CRSP US Small Cap Growth Index, provides diversified access to emerging companies with strong growth characteristics. While suitable for long-term investors with higher risk tolerance, VBK should be considered as part of a broader diversified portfolio given the inherent volatility of small-cap growth stocks. The fund's low expense ratio and Vanguard's reputation make it a compelling choice among small-cap growth ETFs.
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