5 Small Cap Growth ETFs

2. Vanguard Small Cap Growth Index Fund (NYSE:VBK)

YTD Return as of September 14: 12.3%

5-Year Return as of September 14: 17.6%

Vanguard Small Cap Growth Index Fund (NYSE:VBK) is an exchange traded fund that invests at least 80% of net assets in companies on the CRSP US Small Cap Growth Index. The index comprises small cap firms in the US that exhibit growth characteristics. 

One of the biggest holdings of the Vanguard Small Cap Growth Index Fund (NYSE:VBK) is Fair Isaac Corporation (NYSE:FICO), a firm that develops analytic, software, and data decisioning technologies. Among the hedge funds being tracked by Insider Monkey, Pennsylvania-based investment firm Valley Forge Capital is a leading shareholder in Fair Isaac Corporation (NYSE:FICO) with 943,048 shares worth more than $763 million. 

In its Q2 2023 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Fair Isaac Corporation (NYSE:FICO) was one of them. Here is what the fund said:

“Shares of Fair Isaac Corporation (NYSE:FICO), a data and analytics company that helps predict consumer behavior, contributed to performance. The company reported solid quarterly financial results and modestly raised its full-year outlook while taking a more conservative approach to guidance due to macroeconomic uncertainty. CEO Will Lansing sounded confident that the business can hold up well across various macro backdrops and sounded particularly excited about the momentum in the software business. We retain conviction and believe that FICO will be a steady earnings compounder, which should drive solid returns for the stock over the long term.”