VBR News & Analysis
2 articles
Market Mood
Vanguard Small-Cap Value ETF (VBR) and Fed Rate Hike Impact
The Vanguard Small-Cap Value ETF (VBR) benefitted from rate cuts in 2025, contributing to the best first half for small-cap stocks in 35 years in 2026. Currently, the market suggests a 57% chance of a rate hike from the Federal Reserve, with expectations that the federal funds rate could rise by at least 50 basis points over the next year. The ETF holds 838 small-cap stocks with a median market cap of $10.6 billion and a P/E ratio of 17. The upcoming Fed meeting will be crucial for investors considering the potential impact on small-cap stocks’ borrowing costs.
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VBR ETF Expense Ratio 0.05% vs. IJJ's 0.18% for Investors
The Vanguard Morningstar Small-Cap Value ETF (VBR) charges an expense ratio of 0.05%, significantly lower than the 0.18% charged by the iShares S&P Mid-Cap 400 Value ETF (IJJ). VBR offers a portfolio of 841 holdings primarily in Financial Services (17%), Industrials (17%), and Consumer Cyclical (14%). It has paid a dividend of $4.32 per share over the past year, yielding 1.7% based on its approximate share price of $251. The iShares fund has a distribution yield of 1.5% with 303 stocks. This cost difference matters for ordinary investors as it impacts overall returns over time.
Read More: VBR ETF Expense Ratio 0.05% vs. IJJ's 0.18% for Investors