(VB) Vanguard Small-Cap Shares - Ratings and Ratios

The Vanguard Small-Cap Index Fund ETF Shares (NYSE ARCA:VB) is designed to mirror the performance of the CRSP US Small Cap Index, providing investors with diversified exposure to the small-cap segment of the US stock market. By employing a passive indexing strategy, the fund aims to replicate the indexs returns by holding a representative sample of the constituent stocks in proportion to their weighting.

The funds underlying index, CRSP US Small Cap Index, is a widely recognized benchmark for small-cap stocks in the US market. The index comprises a broad range of small-cap companies, offering a comprehensive representation of this market segment. By tracking this index, VB provides investors with a low-cost and efficient way to gain exposure to the small-cap universe.

Analyzing the funds recent price action, we can observe that it is currently trading near its 20-day simple moving average (SMA20) of $228.07, indicating a relatively stable short-term trend. However, the 50-day simple moving average (SMA50) of $219.64 is still below the current price, suggesting a potential bullish crossover in the near future. Furthermore, the 200-day simple moving average (SMA200) of $234.15 is above the current price, indicating a longer-term bearish trend. Considering the Average True Range (ATR) of 1.83%, the funds price volatility is relatively moderate.

Given the current technical and fundamental landscape, our forecast suggests that VB may experience a short-term consolidation phase, potentially followed by a bullish breakout if the SMA20 and SMA50 converge. With the CRSP US Small Cap Index comprising a diverse range of small-cap stocks, the fund is well-positioned to benefit from any upswing in this market segment. Additionally, with Assets Under Management (AUM) of $60.42 billion, VB enjoys significant economies of scale, allowing it to maintain a competitive expense ratio. As a result, we forecast a potential price target of $240-$250 for VB in the next 6-12 months, driven by a combination of technical and fundamental factors.