VTWO — Vanguard Russell 2000 Index Fund ETF Shares
US Small Cap Ranked #83 of 458 tracked ETFs · Issued by Vanguard
VTWO Price Performance — Growth of $10,000
Value of a $10,000 investment in VTWO over time, compared with SPY. Both lines are rebased to $10,000 on the first shared date. Based on total returns — prices are adjusted for dividends and splits, so this assumes distributions were reinvested. Hover or tap the chart for exact values.
VTWO Drawdown
The "underwater" chart: VTWO's decline from its highest prior value at each point in time. It shows how deep past losses ran and how long the fund took to recover to break-even.
What If You'd Invested in VTWO?
See what a lump sum in VTWO would have grown to, with the option to add a regular monthly contribution on top. Figures use total returns — dividends are assumed reinvested.
Past performance doesn't predict future results. Assumes contributions on the first trading day of each month, no trading costs or taxes, and reinvested distributions. History is limited to the range published in the site's daily return data.
Overview
The Vanguard Russell 2000 Index Fund ETF Shares (VTWO) operates within the US Small Cap category, which currently contains 18 ETFs tracked by ETFValuer. Issued by Vanguard, this fund has accumulated assets under management of $18.6 billion and trades at a price of $118.57. It holds an overall rank of #83 out of 458 tracked ETFs across all categories and has received an ETFValuer grade of B with a score of 72.0. The fund offers a low cost structure with an expense ratio of 0.06% and provides a dividend yield of 1.08%. The substantial asset size and moderate trading price suggest significant investor adoption relative to the broader universe of small-cap vehicles. These metrics position VTWO as a widely utilized option within its specific sector classification.
Recent price action shows a short-term decline, with the fund down 1.42% over the last month and 1.05% over the past week, following a slight 0.13% gain in the last day. Despite these near-term dips, the fund has demonstrated strong momentum over longer horizons, posting a 6.14% return over three months and an 11.75% gain over six months. Year-to-date performance has been robust at +18.55%, contributing to a one-year return of 32.35%. The longer-term trajectory remains positive, with a three-year cumulative return of 56.60%. This pattern indicates a divergence where short-term volatility has not prevented significant accumulation of value over the past year and beyond.
VTWO carries a moderate volatility label and exhibits a beta of 1.26, indicating that the fund tends to move with greater magnitude than the broader market. This higher sensitivity is reflected in a maximum drawdown of -27.57% during periods of market stress. Despite these fluctuations, the fund has generated a Sharpe ratio of 1.42, suggesting that the returns achieved have been efficient relative to the risk taken. The combination of a beta above 1.0 and a moderate volatility rating implies the fund amplifies market movements in both directions. Investors should expect larger swings in value compared to lower-beta peers while potentially benefiting from the higher risk-adjusted returns indicated by the Sharpe metric.
AI-generated summary based on the data on this page.
VTWO Top Holdings
| # | Holding | % of Net Assets | Value |
|---|---|---|---|
| 1 | Vanguard Cmt Funds-Vanguard Market Liquidity Fund | 1.82% | $277M |
| 2 | Bloom Energy Corp | 1.11% | $169M |
| 3 | Fabrinet | 0.64% | $98M |
| 4 | Coeur Mining Inc | 0.57% | $86M |
| 5 | Credo Technology Group Holding Ltd | 0.56% | $85M |
| 6 | Hecla Mining Co | 0.52% | $78M |
| 7 | EchoStar Corp | 0.51% | $78M |
| 8 | Nextpower Inc | 0.50% | $76M |
| 9 | Kratos Defense & Security Solutions Inc | 0.47% | $71M |
| 10 | IonQ Inc | 0.42% | $64M |
Holdings as of 2026-02-28 per the fund's most recent SEC N-PORT-P filing. Top 10 holdings make up 7.1% of net assets — a rough gauge of concentration risk (the higher this figure, the more the fund's return depends on a handful of names). To see how VTWO's holdings overlap with other ETFs you own or are considering, check the Stock Overlap tool.
Which Funds Overlap With VTWO
Holding two funds that own the same companies adds cost and complexity without adding much diversification. These tracked ETFs share the most names with VTWO's top 10 — IWM overlaps most, holding 6 of the same companies as VTWO's top 10 (3.8% of VTWO's assets).
| ETF | Name | Shared Companies | VTWO Weight | Examples |
|---|---|---|---|---|
| IWM | iShares Russell 2000 ETF | 6 | 3.8% | Bloom Energy Corp, Credo Technology Group Holding Ltd, Fabrinet… |
| IWO | iShares Russell 2000 Growth ETF | 5 | 3.2% | Bloom Energy Corp, Credo Technology Group Holding Ltd, IonQ Inc… |
| ICLN | iShares Global Clean Energy ETF | 2 | 1.6% | Bloom Energy Corp, Nextpower Inc |
| QCLN | First Trust NASDAQ Clean Edge Green Energy Index Fund | 2 | 1.6% | Bloom Energy Corp, Nextpower Inc |
| GDXJ | VanEck Junior Gold Miners ETF | 2 | 1.1% | Coeur Mining Inc, Hecla Mining Co |
Compares the top 10 reported holdings of each fund, so it's a floor on true overlap — two S&P 500 trackers overlap ~100% even when only 10 names are listed. Use the Stock Overlap tool to search by individual company.
Market Backdrop
10-Year Treasury Yield: 4.65% (as of 2026-07-27) — The yield on 10-year US Treasury bonds — the standard "risk-free rate" benchmark used to contextualize this fund’s Sharpe ratio and returns.
CBOE Volatility Index (VIX): 18.67 (as of 2026-07-27) — A real-time gauge of expected S&P 500 volatility over the next 30 days — useful context for this fund’s own volatility label.
Federal Funds Rate: 3.63% (as of 2026-06-01) — The Federal Reserve’s target policy rate, which anchors short-term borrowing costs across the economy.
What VTWO's Fees Cost You
VTWO charges an expense ratio of 0.06% a year, deducted automatically from the fund's value. Small percentages compound into real money — adjust the figures below to see the impact on your own numbers.
Assumes a constant gross return and no additional contributions — a simplification, but it isolates exactly what the expense ratio costs. Try the full fee calculator to model contributions and compare any two funds.
VTWO Dividend Income Estimator
VTWO currently yields 1.08%. Enter an amount to see the income that implies, or set a monthly income target to see the investment it would take.
Based on the fund's current trailing yield, which varies with price and distributions — treat it as an estimate, not a guarantee. Yields are not adjusted for tax.
VTWO Liquidity, Domicile & Tax Treatment
Liquidity: Quoted bid/ask spread is 0.02% and average daily volume is 2.0M/day. Tighter spreads and higher volume mean lower round-trip trading costs; this is a live-market snapshot and can widen during volatile sessions. AUM of $18.6B provides ample scale, supporting tight spreads and issuer commitment to keep the fund open.
Domicile & tax treatment: VTWO is a US-domiciled, SEC-registered ('40 Act) exchange-traded fund. Dividends and capital gains distributions are reported to US investors on Form 1099-DIV, and the fund is not subject to the PFIC reporting or UCITS-specific rules that apply to Irish- or Luxembourg-domiciled funds. Non-US investors should note that US-domiciled ETFs are generally subject to 30% US withholding tax on dividends (unless reduced by treaty) and to US estate tax exposure on the position — Irish-domiciled UCITS ETFs tracking the same index often avoid both, which is why non-US residents frequently prefer the UCITS equivalent where one exists. This is general information, not tax advice — consult a tax professional for your situation.
VTWO Performance History
| Period | Return |
|---|---|
| 1-Day | +0.13% |
| 1-Week | -1.05% |
| 1-Month | -1.42% |
| 3-Month | +6.14% |
| 6-Month | +11.75% |
| YTD | +18.55% |
| 1-Year | +32.35% |
| 3-Year | +56.60% |
How VTWO Compares to Other US Small Cap ETFs
| Rank | Grade | Ticker | Name | 1-Year | Exp. Ratio | AUM |
|---|---|---|---|---|---|---|
| #53 | B |
IJR | iShares Core S&P Small-Cap ETF | +31.27% | 0.06% | $111B |
| #59 | B |
VBR | Vanguard Small-Cap Value Index Fund ETF Shares | +24.37% | 0.05% | $67.8B |
| #63 | B |
AVUV | Avantis US Small Cap Value ETF | +34.55% | 0.25% | $29.1B |
| #64 | B |
IWN | iShares Russell 2000 Value ETF | +37.60% | 0.24% | $14.5B |
| #76 | B |
IWM | iShares Russell 2000 ETF | +32.10% | 0.19% | $83.0B |
| #80 | B |
SPSM | State Street SPDR Portfolio S&P 600 Small Cap ETF | +31.38% | 0.03% | $16.9B |
| #83 | B |
VTWO | Vanguard Russell 2000 Index Fund ETF Shares | +32.35% | 0.06% | $18.6B |
| #95 | B |
VB | Vanguard Small-Cap Index Fund ETF Shares | +22.41% | 0.03% | $189B |
| #96 | B |
SCHA | Schwab U.S. Small-Cap ETF | +28.88% | 0.03% | $24.2B |
| #99 | B |
DFAT | Dimensional U.S. Targeted Value ETF | +29.59% | 0.28% | $14.3B |
| #109 | B |
VIOO | Vanguard S&P Small-Cap 600 Index Fund ETF Shares | +31.30% | 0.07% | $6.41B |
| #118 | B |
IJS | iShares S&P Small-Cap 600 Value ETF | +33.91% | 0.18% | $8.02B |
| #120 | B |
DFSV | Dimensional US Small Cap Value ETF | +31.78% | 0.3% | $7.92B |
| #124 | B |
SLYV | State Street SPDR S&P 600 Small Cap Value ETF | +33.86% | 0.15% | $4.83B |
| #145 | B |
IJT | iShares S&P Small-Cap 600 Growth ETF | +28.48% | 0.18% | $8.22B |
| #153 | B |
SLYG | State Street SPDR S&P 600 Small Cap Growth ETF | +28.42% | 0.15% | $5.20B |
| #180 | C |
IWO | iShares Russell 2000 Growth ETF | +27.04% | 0.24% | $15.4B |
| #241 | C |
VBK | Vanguard Small-Cap Growth Index Fund ETF Shares | +19.51% | 0.05% | $47.0B |