Vanguard Russell 2000 ETF: A Smart Buy for Small-Cap Exposure
The Motley Fool
by newsfeedback@fool.com (David Dierking)February 23, 2026
AI-Generated Deep Dive Summary
The Vanguard Russell 2000 ETF (NASDAQ: VTWO) offers investors an efficient way to gain exposure to small-cap stocks. With a low expense ratio of just 0.06%, it provides excellent value for tracking the Russell 2000 index, which is widely regarded as one of the most comprehensive benchmarks for small-cap investments. Unlike some other ETFs that may exclude certain smaller companies, VTWO holds every stock in the index, ensuring a tight correlation to its performance.
The Russell 2000 index itself is a key component of the broader U.S. market, representing approximately 10% of total market capitalization and including over 2,000 small-cap companies. While it has faced criticism for its concentration in certain sectors, it remains a reliable indicator of small-cap performance. The Vanguard ETF’s full replication strategy ensures that investors get access to the entire index, rather than just a subset, which can be particularly beneficial during market shifts or rotations.
For investors looking to diversify their portfolios, VTWO stands out as a cost-effective and straightforward option. Its low fees
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Originally published on The Motley Fool on 2/23/2026