Aug. 26, 2025 12:49 AM ETVanguard Small-Cap Index Fund ETF Shares (VB)IJR, IWM, VBAdrien Monnier167 FollowersI rate the Vanguard Small-Cap ETF a buy, expecting small caps to outperform due to low valuations, strong earnings, and upcoming rate cuts.Small caps are at the end of a long underperformance cycle, with historical patterns and current valuations signaling a likely leadership shift.VB offers broad diversification, low fees, and solid performance versus peers, though tech exposure is a concern; industrials and financials are well positioned.Allocate a modest portion of your portfolio to small caps to benefit from the anticipated rebound, while remaining mindful of volatility and sector-specific risks.PM Images/DigitalVision via Getty ImagesI give a buy rating to the Vanguard Small-Cap ETF (NYSEARCA:VB). I believe small caps are on the verge of a new cycle of outperformance against large caps due to their low valuation levels, strongThis article was written byAdrien Monnier167 FollowersI am a dynamic finance professional with a Master’s in Banking & Finance from Université Paris 1 Panthéon-Sorbonne. My investing background mix corporate finance, M&A, and investment analysis, with a focus on real estate, renewable energy, and equity markets. I specialize in financial modelling, valuation, and qualitative analysis, demonstrated with hands-on roles in private equity, asset management and Real Estate. On Seeking Alpha, I aim to write about companies I find interesting sharing my insights and analysis with a global audience, and to debate my ideas in a will of continuous improvement. Motivated by empowering informed decisions, I’m excited to connect with readers and grow as a thought leader in finance.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments