Vanguard Small-Cap Index has some great features. Its well-diversified portfolio and rock-bottom expense ratio should provide a sustainable edge over its Morningstar Category peers. But small-cap stocks are less liquid than large caps, so forced trades can impart additional costs to index-tracking strategies. Although the fund takes prudent steps to mitigate these costs, its lowest-cost share classes warrant a Morningstar Analyst Rating downgrade to Silver from Gold.
Vanguard Small Cap Index Adm VSMAX
NAV / 1-Day Return
101.48
/
3.07
%
Total Assets
45.0 Bil
Adj. Expense Ratio
Adjusted Expense Ratio excludes certain variable investment-related expenses, such as interest from borrowings and dividends on borrowed securities, allowing for more consistent cost comparisons across funds.
0.050%
Expense Ratio
0.050%
Fee Level
Low
Longest Manager Tenure
5.04
years
Category
Small Blend
Investment Style
Small BlendMin. Initial Investment
3,000
Status
Open
TTM Yield
1.04%
Turnover
22%
Premium
Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
Will VSMAX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable VSMAX’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the VSMAX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of VSMAX’s parent organization’s priorities and whether they’re in line with investors’ interests.
A well-constructed small-cap fund with a sizable cost advantage.
