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VTWO - ETF AI Analysis

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VTWO

Vanguard Russell 2000 ETF (VTWO)

Rating:63Neutral
Price Target:
VTWO, the Vanguard Russell 2000 ETF, has a solid overall rating that reflects a mix of strong growth stories and some weaker names among its small-cap holdings. Higher-quality positions like Fabrinet, NEXTracker, Credo Technology, Sterling Infrastructure, and Hecla Mining support the fund’s rating through robust financial performance, positive earnings calls, and generally favorable technical trends, even if some look a bit expensive. However, weaker holdings such as Echostar, with poor financial performance and unattractive valuation, and risk factors like high P/E ratios and cash flow challenges in several companies, along with exposure to more volatile sectors like mining and high-growth tech, introduce added risk that keeps the rating from being higher.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and over the past month, indicating positive recent momentum in its holdings.
Low Expense Ratio
The fund’s very low fee means less of your return is eaten up by costs compared with many other ETFs.
Broad Sector Diversification
Holdings are spread across many sectors like health care, industrials, financials, and technology, which helps reduce the impact if any one industry struggles.
Negative Factors
Heavy U.S. Concentration
Almost all of the ETF’s assets are invested in U.S. companies, offering very limited international diversification.
Small Individual Holdings Impact
Each top holding makes up only a tiny slice of the fund, so even strong performers have a limited effect on overall returns.
Some Weak Top Holdings
A few of the largest positions have shown weak or negative performance this year, which can drag on the fund’s overall results.

VTWO vs. SPDR S&P 500 ETF (SPY)

VTWO Summary

The Vanguard Russell 2000 ETF (VTWO) is a fund that follows the Russell 2000 Index, which tracks 2,000 smaller U.S. companies. These are “small-cap” businesses that can grow faster than large, well-known firms. The ETF owns many different stocks across sectors like health care, technology, and industrials, including companies such as Bloom Energy and Echostar. Someone might invest in VTWO to seek long-term growth and to diversify beyond big-name stocks. A key risk is that small-company shares can be more volatile, so the price of this ETF can move up and down sharply with the market.
How much will it cost me?The Vanguard Russell 2000 ETF (VTWO) has an expense ratio of 0.07%, which means you’ll pay $0.70 per year for every $1,000 invested. This is lower than average because it’s a passively managed fund that tracks the Russell 2000 Index, keeping costs down by avoiding frequent trading or active management.
What would affect this ETF?The Vanguard Russell 2000 ETF (VTWO), focused on small-cap U.S. companies, could benefit from economic growth and innovation in sectors like technology and healthcare, which make up a significant portion of its holdings. However, small-cap stocks are more sensitive to economic downturns, interest rate hikes, and market volatility, which could negatively impact the ETF's performance. Regulatory changes or challenges in key sectors such as financials or energy may also pose risks to its future growth.

VTWO Top 10 Holdings

VTWO’s story is all about U.S. small caps, with no single stock calling the shots but a cast of rising and lagging niche players. Tech-oriented names like Credo Technology, Fabrinet, and Advanced Energy have been doing the heavy lifting lately, giving the fund a helpful tailwind. Infrastructure-focused Sterling Infrastructure is also pulling its weight. On the flip side, defense player Kratos and silver producer Hecla Mining have been dragging a bit, showing weaker momentum. Sector exposure is spread across tech, industrials, health care, and financials, keeping the fund broadly diversified despite these standouts.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Bloom Energy0.99%$145.91M$74.25B1381.44%
62
Neutral
Coeur Mining0.64%$94.59M$19.20B136.73%
69
Neutral
Fabrinet0.63%$92.81M$22.26B206.62%
78
Outperform
Nextpower Inc0.59%$86.64M$18.69B170.54%
78
Outperform
Echostar0.53%$78.20M$36.85B425.63%
57
Neutral
Credo Technology Group Holding Ltd0.50%$74.65M$34.77B271.07%
77
Outperform
Kratos Defense0.42%$62.82M$10.86B72.24%
60
Neutral
Advanced Energy0.41%$59.93M$13.59B216.98%
67
Neutral
Sterling Infrastructure0.40%$59.84M$25.92B375.30%
71
Outperform
Hecla Mining Company0.39%$58.34M$12.48B261.36%
74
Outperform

VTWO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
105.85
Positive
100DMA
105.24
Positive
200DMA
100.55
Positive
Market Momentum
MACD
2.58
Negative
RSI
67.22
Neutral
STOCH
78.82
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VTWO, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 112.01, equal to the 50-day MA of 105.85, and equal to the 200-day MA of 100.55, indicating a bullish trend. The MACD of 2.58 indicates Negative momentum. The RSI at 67.22 is Neutral, neither overbought nor oversold. The STOCH value of 78.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VTWO.

VTWO Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$16.23B0.06%
63
Neutral
$102.98B0.06%
66
Neutral
$78.66B0.19%
64
Neutral
$76.86B0.03%
67
Neutral
$22.45B0.04%
64
Neutral
$248.02M0.75%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VTWO
Vanguard Russell 2000 ETF
114.18
31.67
38.38%
IJR
iShares Core S&P Small Cap ETF
IWM
iShares Russell 2000 ETF
VB
Vanguard Small-Cap ETF
SCHA
Schwab U.S. Small-Cap ETF
GSC
Goldman Sachs Small Cap Core Equity ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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