Vanguard Extended Market ETF (VXF) Proves Popular Among Investors

We have seen some good sized inflows into VXF (Vanguard Extended Market, Expense Ratio 0.08%, $5.8 billion in AUM), which falls within the “Multi-Cap” space as one might surmise given the fund’s title.

Like many Vanguard ETFs, VXF has its roots in a mutual fund strategy, ticker VEXMX (Vanguard Extended Market Index Fund, Expense Ratio 0.21%, $57.2 billion in AUM) that launched way back in late December of 1987. During Vanguard’s foray into the ETF business, Vanguard debuted VXF into the marketplace years later in late December of 2001 hoping to mimic the asset gathering success of the mutual fund.

At the moment we see that VXF, thanks to the recent inflows topping $750 million, ranks fifth in the greater “Mid-Cap Blend Equity” behind larger funds like IJH (iShares Core S&P Mid-Cap, Expense Ratio 0.07%, $40.4 billion in AUM), VO (Vanguard Mid-Cap, Expense Ratio 0.06%, $20 billion in AUM), MDY (SPDR S&P Midcap 400, Expense Ratio 0.25%, $19 billion in AUM), and IWR (iShares Russell Mid-Cap, Expense Ratio 0.20%, $15.7 billion in AUM).

Based on the “S&P Completion Index,” which is likely not a familiar index to most, fund literature suggests the following about VXF: “Seeks to track the performance of a benchmark index that measures the investment return of stocks from small and midsize companies.” Furthermore, and in a point that illustrates exactly where the value of the S&P Completion Index may lay in the context of overall index investing, “Provides a convenient way to match the performance of virtually all regularly traded U.S. stocks except those in the S&P 500 Index.” This is an important point in that S&P and Vanguard are isolating “regularly traded stocks” as opposed to containing potentially illiquid names, but ones that are not S&P 500 names.

When we look at the top holdings within VXF the previous statements jump out at us loud and clear in illustrating how VXF is structured: 1) TSLA (0.88%), 2) LBTYA (0.61%), 3) LVS (0.48%) 4) TMUS (0.44%), 5) NOW (0.37%), 6) SBAC (0.37%), 7) BMRN (0.35%), 8) MGM (0.35%), 9) INFO (0.35%), and 10) FRC (0.32%).

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The Vanguard Extended Market ETF (NYSE:VXF) was trading at $104.41 per share on Wednesday afternoon, down $0.48 (-0.46%). Year-to-date, VXF has gained 9.50%, versus a 11.72% rise in the benchmark S&P 500 index during the same period.

VXF currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #5 of 29 ETFs in the Mid Cap Blend ETFs category.


Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.