Should Vanguard S&P Small-Cap 600 ETF (VIOO) Be on Your Investing Radar?

Core Insights - The Vanguard S&P Small-Cap 600 ETF (VIOO) is a passively managed ETF launched on September 9, 2010, with assets exceeding $2.95 billion, targeting the Small Cap Blend segment of the US equity market [1] Costs - The ETF has an annual operating expense ratio of 0.07%, making it one of the least expensive options in its category, and it offers a 12-month trailing dividend yield of 1.50% [3] Sector Exposure and Top Holdings - The ETF has a significant allocation to the Financials sector, comprising approximately 19.30% of the portfolio, followed by Industrials and Consumer Discretionary [4] - The top individual holding, Slcmt1142, accounts for about 0.71% of total assets, with the top 10 holdings representing around 3.08% of total assets under management [5] Performance and Risk - VIOO aims to replicate the performance of the S&P SmallCap 600 Index, having lost about -1.24% year-to-date and gained approximately 3.81% over the past year as of July 15, 2025 [6] - The ETF has a beta of 1.07 and a standard deviation of 21.72% over the trailing three-year period, indicating a medium risk profile with 609 holdings to diversify company-specific risk [7] Alternatives - VIOO holds a Zacks ETF Rank of 2 (Buy), indicating favorable expected returns, low expense ratios, and positive momentum, making it a strong choice for investors interested in the Small Cap Blend segment [8] - Other comparable ETFs include the iShares Russell 2000 ETF (IWM) with $66.42 billion in assets and an expense ratio of 0.19%, and the iShares Core S&P Small-Cap ETF (IJR) with $82.01 billion in assets and an expense ratio of 0.06% [9] Bottom-Line - Passively managed ETFs like VIOO are increasingly popular among retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [10]