The Vanguard Small-Cap Growth ETF (VBK) stands out for its exceptionally low expense ratio of 0.07%, a fraction of most small-cap growth peers. With $39.7 billion in assets under management, VBK benefits from deep liquidity and economies of scale, which help keep trading spreads tight and operating costs minimal. Investors allocating to VBK pay just $7 annually in fees for every $10,000 invested, positioning the fund as a cost-efficient core holding for long-term portfolios.

VBK tracks a broad index of U.S. small-cap growth companies and currently holds 579 individual stocks. Its sector exposures are tilted toward technology (27%), industrials (21%), and healthcare (18%). The three largest positions—Insmed Inc. (1.44% of assets), Comfort Systems USA Inc. (1.13%), and SoFi Technologies Inc. (1.11%)—each represent only a small fraction of the portfolio, underscoring the fund’s diversified construction and reduced idiosyncratic risk compared to more concentrated strategies.

Over the past year (as of January 9, 2026), VBK delivered a total return of 14.4% and paid a 0.5% dividend yield. Its five-year max drawdown sits at –38.39%, and a $1,000 investment would have grown to approximately $1,145 over that period. The fund’s beta of 1.4 indicates higher volatility relative to the S&P 500, meaning VBK can offer elevated growth potential but may also experience sharper short-term swings.

VBK is well suited for cost-conscious investors seeking broad exposure to the small-cap growth segment. Its low fees and large, diversified lineup of nearly 600 names help dampen single-stock risk, while a 22-year track record provides historical evidence of its resilience across market cycles. Although VBK carries above-average volatility, its scalability and long-term return potential make it an attractive option for investors with multi-year horizons who prioritize minimizing ongoing costs.