- Sector
- Financial Services
- Industry
- Asset Management - Global
- Address
- 100 Vanguard Boulevard Malvern PA United States of America 19355
- IPO Date
- Sep 22, 2010
- Business
- Vanguard Russell 2000 Index Fund (VTWO) is an exchange-traded fund that seeks to track the performance of the Russell 2000 Index, which measures the investment return of small-capitalization stocks in the United States. The fund employs a passive, full-replication management strategy, holding approximately 1,982 to 2,004 securities representing the 1001st through 3000th largest companies from the Russell 3000 Index by market capitalization, providing diversified exposure across various sectors and industry groups without bias; it weights holdings by market capitalization and undergoes annual reconstitution. Launched on September 20, 2010, by The Vanguard Group, Inc., and headquartered in Valley Forge, Pennsylvania, VTWO targets institutional and retail investors seeking low-cost small-cap equity exposure, with assets under management exceeding $13 billion, a net expense ratio of 0.07% or 7 basis points, quarterly distributions, and a turnover rate of around 12-14%. The fund operates primarily in U.S. equity markets, encompassing approximately 10% of the Russell 3000's total market capitalization, with a weighted average market cap of roughly $3.4 billion, 30.7% in small-cap stocks under $2 billion, 58.9% in mid-caps between $2-10 billion, and minor large-cap allocation. In March 2021, VTWO underwent a two-for-one forward share split effective April 20, 2021, to enhance share accessibility and utility without impacting shareholder value or triggering tax consequences, as part of Vanguard's broader adjustments to its Russell Index ETF series. More recently, as of late 2024 through 2025, the fund has seen steady net inflows, including $178.84 million over the past year, reflecting sustained investor interest amid small-cap market dynamics, while maintaining its core tracking objective with no reported changes to its benchmark, structure, or advisory arrangements. VTWO remains part of Vanguard Scottsdale Funds, with no subsidiaries or parent entities beyond Vanguard's oversight, focusing on long-term performance replication of the Russell 2000 benchmark.