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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 typical of a diversified small-cap fund. Higher-quality holdings like Fabrinet, NEXTracker, Credo Technology, and Hecla Mining support the fund’s rating through robust financial performance, positive earnings calls, and constructive technical trends. However, weaker holdings such as Echostar and IonQ, which face poor or challenged financial performance and cash flow issues, weigh on the score, and investors should also recognize the inherent risk of small-cap exposure across many specialized sectors.
Positive Factors
Broad Small-Cap Exposure
The ETF tracks the Russell 2000 index, giving investors wide exposure to many U.S. small-cap companies in a single fund.
Low Expense Ratio
The fund’s expense ratio is low, which helps investors keep more of the returns generated by the portfolio.
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year-to-date, indicating recent positive momentum in its holdings.
Negative Factors
Heavy U.S. Concentration
With the vast majority of assets in U.S. stocks, the fund offers very limited geographic diversification outside the United States.
Small-Cap Volatility Risk
Because it focuses on smaller companies, the ETF can be more sensitive to market swings and economic slowdowns than large-cap funds.
Top Holdings in Higher-Risk Names
Several of the largest positions are in younger or more speculative companies, which can add extra risk even though they have recently performed strongly.

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

VTWO Summary

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” stocks, often younger or faster-growing businesses across many sectors like health care, technology, and industrials. Examples of companies in the fund include Bloom Energy and IonQ. Someone might invest in VTWO to seek long-term growth and to diversify beyond large, well-known stocks. A key risk is that small-company shares can be more volatile, so the price of this ETF can move up and down more sharply than the overall 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 in the driver’s seat but a few names still steering sentiment. Bloom Energy has been a bright spot, rising steadily and giving the fund a lift, while Sterling Infrastructure and NEXTracker add to the upside with solid, if occasionally choppy, momentum. On the flip side, Credo Technology and IonQ have been lagging, acting like a bit of a brake on returns. Overall, performance is driven more by broad small-cap exposure than any one sector star.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Bloom Energy1.09%$168.71M$38.01B537.90%
62
Neutral
Fabrinet0.63%$97.71M$18.68B164.70%
78
Outperform
Coeur Mining0.56%$86.18M$19.42B236.38%
69
Neutral
Credo Technology Group Holding Ltd0.55%$85.38M$17.31B125.00%
77
Outperform
Hecla Mining Company0.51%$78.50M$12.49B239.96%
74
Outperform
Echostar0.50%$77.66M$33.82B364.75%
57
Neutral
Nextpower Inc0.49%$76.02M$17.90B180.02%
78
Outperform
Kratos Defense0.48%$74.25M$13.17B140.65%
60
Neutral
IonQ0.42%$64.36M$10.57B24.32%
51
Neutral
Sterling Infrastructure0.41%$63.32M$12.48B252.19%
71
Outperform

VTWO Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
103.94
Negative
100DMA
102.02
Negative
200DMA
97.42
Positive
Market Momentum
MACD
-1.43
Positive
RSI
46.80
Neutral
STOCH
29.28
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VTWO, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 100.58, equal to the 50-day MA of 103.94, and equal to the 200-day MA of 97.42, indicating a neutral trend. The MACD of -1.43 indicates Positive momentum. The RSI at 46.80 is Neutral, neither overbought nor oversold. The STOCH value of 29.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VTWO.

VTWO Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$13.66B0.06%
63
Neutral
$91.61B0.06%
66
Neutral
$70.59B0.03%
67
Neutral
$70.23B0.19%
65
Neutral
$19.72B0.04%
65
Neutral
$150.09M0.75%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VTWO
Vanguard Russell 2000 ETF
100.17
19.28
23.83%
IJR
iShares Core S&P Small Cap ETF
VB
Vanguard Small-Cap ETF
IWM
iShares Russell 2000 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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