"The Vanguard Russell 2000 ETF tracks the Russell 2000 index directly, holding over 2,000 small-cap stocks with significant sector weights in Healthcare, Industrials, and Financials. It charges just 6 basis points annually, making it a cost-effective choice for long-term investors."
"The fund has returned about 23% over the past year and 165% over the past decade, closely mirroring its benchmark as expected from a passive index fund. Portfolio turnover sits at just 14%, minimizing transaction costs and tax drag."
"A meaningful portion of the Russell 2000 consists of companies that are not yet earning money, which amplifies both upside and downside relative to a filtered approach. Investors should be aware of the risks associated with unprofitable companies."
Small-cap stocks have increased by approximately 21% over the past year, despite volatility in early 2026. The Russell 2000 index reflects this growth but has experienced significant fluctuations. Investors interested in small-cap companies should consider the structure of their investment vehicles. The Vanguard Russell 2000 ETF is a low-cost option that directly tracks the index, holding over 2,000 small-cap stocks. It has returned 23% in the past year and 165% over the past decade, but includes unprofitable companies, which can increase risk.
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