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VTWO - ETF AI Analysis

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VTWO

Vanguard Russell 2000 ETF (VTWO)

Rating:62Neutral
Price Target:
VTWO, the Vanguard Russell 2000 ETF, has a solid overall rating driven by several strong growth-oriented holdings like Credo Technology Group, Fabrinet, and NEXTracker, which show robust financial performance, positive earnings calls, and supportive technical trends. However, weaker names such as IonQ and Echostar, which face significant financial losses and poor current performance, along with valuation concerns across multiple holdings, temper the fund’s appeal. The main risk factor is its focus on smaller, growth-heavy companies, where high valuations and financial instability in some positions can lead to higher volatility.
Positive Factors
Strong Recent Year-to-Date Results
The ETF has delivered strong gains so far this year, showing solid momentum in its small-cap holdings.
Top Holdings with Strong Performance
Several of the largest positions, including technology and crypto-related names, have posted strong gains, helping lift the fund’s overall returns.
Low Expense Ratio
The fund’s very low fee means more of the ETF’s returns stay in investors’ pockets instead of going to costs.
Negative Factors
High U.S. Concentration
With the vast majority of assets in U.S. stocks and very little abroad, investors get limited geographic diversification.
Small-Cap and Crypto Sensitivity
Heavy exposure to smaller companies and crypto-related stocks can make the ETF more volatile and sensitive to market swings.
Recent Short-Term Weakness
The fund has shown slightly negative performance over the past month, which may signal short-term choppiness despite its stronger year-to-date results.

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” businesses across many sectors like health care, technology, and financials. Examples of companies in the fund include Moog and ViaSat. Investors might consider VTWO if they want to add growth potential from smaller, fast-moving companies and diversify beyond large, well-known stocks. However, small-cap stocks can be more volatile, so the price of this ETF can move up and down more sharply than funds focused on larger companies.
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 small-cap volatility, with a cast of niche U.S. players driving the action. Crypto-linked names like Hut 8 and Riot Platforms have been hot over the longer term but are currently lagging, adding a roller-coaster feel to returns. Tech and software exposure through MaxLinear and JFrog has been rising overall, even if recent trading has turned choppy. Health care names such as BrightSpring and Cytokinetics provide steady, if mixed, support. With broad sector coverage but no single dominant stock, performance is driven by the collective mood of U.S. small caps.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Moog0.37%$69.90M$12.39B103.78%
73
Outperform
Hut 80.36%$68.65M$12.12B453.11%
ViaSat0.35%$65.68M$10.60B363.99%
56
Neutral
BrightSpring Health Services, Inc.0.35%$65.52M$11.72B204.02%
67
Neutral
Cytokinetics0.34%$64.84M$9.60B110.22%
57
Neutral
Maxlinear0.34%$63.84M$6.06B339.32%
60
Neutral
Argan0.33%$63.23M$8.00B153.22%
73
Outperform
UMB Financial0.32%$60.67M$11.07B34.45%
77
Outperform
JFrog0.30%$57.11M$9.66B90.34%
73
Outperform
Riot Platforms0.30%$56.27M$7.63B82.86%
68
Neutral

VTWO Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
118.08
Negative
100DMA
112.37
Positive
200DMA
106.99
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VTWO, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 118.83, equal to the 50-day MA of 118.08, and equal to the 200-day MA of 106.99, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VTWO.

VTWO Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$16.91B0.06%
62
Neutral
$109.72B0.06%
65
Neutral
$80.50B0.19%
62
Neutral
$79.92B0.03%
66
Neutral
$22.33B0.03%
64
Neutral
$288.57M0.75%
66
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VTWO
Vanguard Russell 2000 ETF
117.73
30.03
34.24%
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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