Vanguard Russell 2000 ETF (VTWO) Stock 2026 Review

Mika L.
Written by Mika L.
Financial Content Writer

Vanguard Russell 2000 ETF4.5/5

VTWO (NASDAQ)

Dividend yield
1.21%
Distribution
Quarterly
1-Year Return
20.30%
5-Year Return
23.92%

The Vanguard Russell 2000 ETF (VTWO) offers an attractive option for investors seeking diversified exposure to small-cap companies, tracking the well-regarded Russell 2000 index with an impressively low expense ratio of 0.07%. With a solid 1-year return of 20.30% and a 5-year return of 23.92%, it demonstrates strong growth potential, though investors should be aware of its sensitivity to macroeconomic conditions. Historically, VTWO has delivered a remarkable 140.88% total return over the past decade, translating to an annualized return of 9.19%, making it a compelling choice for long-term investment strategies.

Pros:

  • Diversified small-company exposure
  • Tracks small-cap Russell 2000 index

Cons:

  • More sensitive to macroeconomic factors
  • Historically underperformed during economic stress

The Vanguard Russell 2000 ETF (VTWO) may be suitable for investors looking to gain diversified exposure to small-cap stocks while benefiting from strong historical performance and low costs. However, potential investors should consider their risk tolerance, as small-cap investments can be more volatile and sensitive to economic fluctuations.

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