Vanguard Small Cap Value Index’s razor-thin fee is its greatest strength. This strategy is also attractive because it accurately represents the composition of U.S. small-value market with low turnover. Under our new ratings framework, which places a greater focus on fees, the fund's cheapest share classes warrant an upgrade to a Morningstar Analyst Rating of Gold from Silver. Owing to its relatively higher fee, the Investor share class retains its Silver rating.
Will VBR outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable VBR’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the VBR management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of VBR’s parent organization’s priorities and whether they’re in line with investors’ interests.