Vanguard Small-Cap Index Fund Institutional Shares (VSCIX) is an institutional-class mutual fund that employs a passive indexing investment approach designed to track the performance of the CRSP US Small Cap Index, a broadly diversified benchmark comprising stocks of smaller U.S. companies meeting specific market-capitalization and liquidity criteria. The fund invests all or substantially all of its assets in the common stocks included in the CRSP US Small Cap Index, holding each stock in approximately the same proportion as its index weighting to minimize tracking error; it features market-cap weighting, low turnover of approximately 13%, and sector allocations led by industrials (22.3%), consumer discretionary (14.5%), financials (14.2%), technology (13.6%), and health care (11.3%), with top holdings including NRG Energy Inc., Insmed Inc., SoFi Technologies Inc., Comfort Systems USA Inc., and EMCOR Group Inc. Launched on July 7, 1997, with total net assets of $22.5 billion as of September 2025 and an expense ratio of 0.04%, the fund targets institutional investors with a minimum initial investment of $5 million and operates exclusively within the U.S. small-cap equity market segment. Headquartered in Malvern, Pennsylvania, as part of The Vanguard Group, Inc., it benefits from the parent firm's scale and low-cost structure. In early 2025, Vanguard implemented its largest-ever fee reductions across 168 share classes in 87 funds, including small-cap offerings like VSCIX, slashing expense ratios by an average of 20% at a cost of over $350 million to enhance investor value amid robust asset inflows rivaling BlackRock; the firm also established a dedicated advice and wealth management division under new CEO Salim Ramji and added portfolio manager Walter J. Choi in 2025 while maintaining a stable management team.