(VXF) Vanguard Extended Market - Ratings and Ratios

The Vanguard Extended Market Index Fund ETF Shares (VXF) is designed to provide exposure to small and mid-size U.S. companies by tracking the performance of the S&P Completion Index. This index offers a broad diversification across various industries and market capitalizations, complementing larger-cap indexes like the S&P 500. The fund employs a sampling strategy, meaning it holds a representative selection of securities from the index rather than replicating it entirely. This approach aims to mirror the indexs key characteristics, such as industry weightings, market capitalization, and financial metrics like P/E ratio and dividend yield, while maintaining operational efficiency.

As an exchange-traded fund (ETF), VXF offers the flexibility of trading throughout the day, combining the diversification benefits of an index fund with the convenience of a stock. With an average volume of 583,400 shares over the past 20 days, VXF provides reasonable liquidity for investors. The funds current price of $158.14 reflects its recent market activity, with short-term and long-term trends indicated by its moving averages (SMA 20: $166.33, SMA 50: $177.62, SMA 200: $183.01) and average true range (ATR) of $5.99. These metrics suggest moderate volatility, with the ATR indicating an average price movement of nearly $6 over the past period.

From a fundamental perspective, VXF manages approximately $17.36 billion in assets under management (AUM), underscoring its status as a substantial player in the mid-cap blend ETF category. This scale contributes to its stability and ability to track the S&P Completion Index effectively. The funds structure allows investors to gain exposure to a diversified portfolio of small and mid-cap companies, which may offer growth potential and diversification benefits when combined with larger-cap investments.

VXFs investment approach focuses on replicating the performance of the S&P Completion Index through a sampling methodology. This means the fund holds a subset of the indexs constituents that collectively reflect the overall characteristics of the index. By doing so, VXF aims to deliver returns that closely align with the S&P Completion Index, providing investors with cost-effective access to the small and mid-cap segments of the U.S. equity market. The funds holdings are periodically reviewed and adjusted to ensure continued alignment with the target index.

Looking ahead, the next three months for VXF are expected to be influenced by its current technical and fundamental backdrop. Based on the provided data, the funds price of $158.14 is below its key moving averages (SMA 20: $166.33, SMA 50: $177.62, SMA 200: $183.01), which may indicate near-term downward pressure. However, the average true range (ATR) of $5.99 suggests that price movements could remain within a moderate range. The significant assets under management ($17.36 billion) highlight the funds liquidity and stability, which could support its performance during periods of market volatility. Overall, VXF is expected to continue tracking the S&P Completion Index closely, with its price movements likely to remain in line with the broader trends in the small and mid-cap U.S. equity market.