The Vanguard S&P Small-Cap 600 Value ETF (VIOV) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Value segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $1.26 billion, making it one of the average sized ETFs attempting to match the Small Cap Value segment of the US equity market.
Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.
While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Investors should also pay attention to an ETF’s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.84%.
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector–about 23.70% of the portfolio. Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Borgwarner Inc (BWA) accounts for about 1.17% of total assets, followed by Qorvo Inc (QRVO) and Mr Cooper Group Inc (COOP).
The top 10 holdings account for about 8.07% of total assets under management.
VIOV seeks to match the performance of the S&P SmallCap 600 Value Index before fees and expenses. The S&P SmallCap 600 Value Index represents the value companies of the S&P SmallCap 600 Index.
The ETF has lost about -7.69% so far this year and is up roughly 4.72% in the last one year (as of 07/01/2025). In the past 52-week period, it has traded between $71.94 and $101.38.
The ETF has a beta of 1.07 and standard deviation of 22.40% for the trailing three-year period, making it a medium risk choice in the space. With about 465 holdings, it effectively diversifies company-specific risk.
Vanguard S&P Small-Cap 600 Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VIOV is an excellent option for investors seeking exposure to the Style Box – Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.