Vanguard Small-Cap Index Fund Admiral Shares (VSMAX)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) trades at $143.98 with AI Score 47/100 (Grade C). Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) offers investors broad exposure to the U. S. small-cap equity market. Market cap: $182.65B, Sector: Financial services.
Price live · AI analysis from Mar 18, 2026Analyst Coverage for VSMAX: VSMAX does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates VSMAX against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
VSMAX: the 1 perspectives are evenly split.
How is this calculated? →Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) Financial Services Profile
Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) provides broad, low-cost exposure to the U.S. small-cap equity market by tracking an index of small-sized companies. It is designed for investors seeking to diversify their portfolios with a small-cap allocation, while acknowledging the inherent volatility of this market segment.
What Is the Investment Thesis for VSMAX?
VSMAX presents an investment opportunity for those seeking broad exposure to the U.S. small-cap equity market. Its low expense ratio and passive management style offer cost-effective diversification. A key value driver is the potential for long-term capital appreciation as small-cap stocks historically outperform large-cap stocks over extended periods. Upcoming catalysts include potential economic recovery and infrastructure spending, which could disproportionately benefit smaller companies. However, investors may want to evaluate the fund's higher volatility compared to large-cap funds and the potential for underperformance during economic downturns. The fund's beta of 1.22 indicates higher sensitivity to market movements.
Based on FMP financials and quantitative analysis
VSMAX Key Highlights
- VSMAX provides exposure to the small-capitalization segment of the U.S. equity market.
- The fund operates with a low expense ratio, making it a cost-effective investment option.
- VSMAX's passive management style aims to replicate the performance of its benchmark index.
- The fund offers diversification across a broad range of small-cap stocks.
- VSMAX is suitable for investors seeking long-term capital appreciation through small-cap exposure.
Who Are VSMAX's Competitors?
VSMAX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| VCSAX Vanguard Consumer Staples Index Fund Admiral Shares | $113.71 | +2.13% | $9.10B | 47 |
| VEMPX Vanguard Extended Market Index Fund Institutional Plus Shares | $455.61 | -0.56% | $93.74B | 44 |
| VEMRX Vanguard Emerging Markets Stock Index Fund Institutional Plus Shares | $123.65 | -0.46% | $162.82B | 47 |
| VEXAX Vanguard Extended Market Index Fund Admiral Shares | $184.64 | -0.55% | $93.74B | 44 |
| VGSNX Vanguard Real Estate Index Fund Institutional Shares | $21.51 | +1.32% | $69.80B | 44 |
| NXDT NexPoint Diversified Real Estate Trust | $5.53 | +3.08% | $285.77M | 73 |
| GENB Generate Biomedicines, Inc. | $17.03 | -2.18% | $2.18B | 72 |
| SII Sprott Inc. | $118.11 | +2.72% | $3.05B | 71 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are VSMAX's Key Strengths?
- Low expense ratio
- Broad diversification across small-cap stocks
- Passive management style
- Strong brand reputation of Vanguard
What Are VSMAX's Weaknesses?
- Higher volatility compared to large-cap funds
- Potential for underperformance during economic downturns
- Limited potential for outperformance due to passive management
- Dependent on the performance of the small-cap market
What Could Drive VSMAX Stock Higher?
- Potential economic recovery benefiting small-cap companies.
- Increased adoption of passive investment strategies.
- Infrastructure spending boosting small-cap growth.
What Are the Key Risks for VSMAX?
- Higher volatility compared to large-cap funds.
- Underperformance during economic downturns.
- Competition from other low-cost index funds.
- Changes in investor sentiment towards passive investing.
What Are the Growth Opportunities for VSMAX?
- Increased Adoption of Passive Investing: The growing trend of investors shifting towards passive investment strategies presents a significant growth opportunity for VSMAX. As investors seek low-cost, diversified investment options, VSMAX's index-tracking approach becomes increasingly attractive. The market for passive investments is projected to continue expanding, driven by factors such as fee sensitivity and the perceived difficulty of outperforming the market through active management. This trend could lead to increased inflows into VSMAX, boosting its assets under management and overall market presence.
- Expansion of Small-Cap Market: The potential growth of the small-cap equity market offers another avenue for VSMAX to expand its reach. Small-cap stocks often exhibit higher growth potential compared to their large-cap counterparts, making them appealing to investors seeking capital appreciation. Factors such as economic recovery, infrastructure spending, and technological innovation can drive the growth of small-cap companies, leading to increased investor interest and inflows into VSMAX. As the small-cap market expands, VSMAX is well-positioned to capture a share of this growth due to its broad market exposure and low-cost structure.
- Rising Demand for Diversification: The increasing recognition of the importance of diversification in investment portfolios creates an opportunity for VSMAX to attract investors. By providing exposure to a wide range of small-cap stocks, VSMAX helps investors diversify their holdings and reduce overall portfolio risk. As investors become more aware of the benefits of diversification, they may allocate a portion of their assets to small-cap investments through vehicles like VSMAX. This trend could lead to increased demand for VSMAX and contribute to its growth.
- Technological Advancements in Asset Management: The integration of technology in asset management can enhance VSMAX's operational efficiency and investment strategies. The use of data analytics, artificial intelligence, and machine learning can improve portfolio construction, risk management, and trading execution. By leveraging these technological advancements, VSMAX can potentially enhance its performance and attract more investors. The adoption of technology can also lead to cost savings, which can be passed on to investors in the form of lower expense ratios.
- Strategic Partnerships and Distribution Channels: Forming strategic partnerships with financial advisors, brokerage firms, and retirement plan providers can expand VSMAX's distribution channels and reach a wider audience. By collaborating with these intermediaries, VSMAX can increase its visibility and accessibility to potential investors. These partnerships can also provide access to new markets and customer segments, contributing to the fund's growth and market share. The development of effective distribution channels is crucial for attracting inflows and sustaining long-term growth.
What Opportunities Does VSMAX Have?
- Increased adoption of passive investing
- Expansion of the small-cap market
- Rising demand for diversification
- Technological advancements in asset management
What Threats Does VSMAX Face?
- Competition from other low-cost index funds
- Economic downturns negatively impacting small-cap stocks
- Changes in investor sentiment towards passive investing
- Regulatory changes affecting the asset management industry
What Are VSMAX's Competitive Advantages?
- Low Expense Ratio: VSMAX's low expense ratio provides a cost advantage over actively managed funds and higher-cost index funds.
- Brand Reputation: Vanguard's strong brand reputation and established position in the asset management industry enhance investor confidence.
- Scale: Vanguard's large scale allows VSMAX to operate efficiently and maintain low costs.
- Passive Management: The fund's passive management style reduces the need for active stock selection and lowers operating expenses.
What Does VSMAX Do?
Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) is a passively managed fund designed to mirror the performance of the small-capitalization segment of the U.S. equity market. As part of the Vanguard Group, known for its low-cost investment philosophy, VSMAX offers investors an efficient way to gain exposure to a diversified portfolio of small-cap stocks. The fund operates by tracking a benchmark index composed of small-sized companies across various sectors, providing a broad representation of the small-cap market. VSMAX's investment strategy focuses on replicating the index's holdings, minimizing tracking error and maintaining a low expense ratio. This approach aims to deliver returns that closely align with the overall performance of the small-cap market, making it a suitable option for investors seeking diversified exposure to this asset class. The fund's structure and management style are geared towards long-term investment objectives, emphasizing cost-effectiveness and broad market representation within the small-cap space. VSMAX is available to investors seeking to diversify their portfolios with a small-cap allocation, offering a simple and low-cost solution for accessing this market segment.
What Products and Services Does VSMAX Offer?
- Provides investors with exposure to the small-capitalization segment of the U.S. equity market.
- Tracks a benchmark index composed of small-sized companies across various sectors.
- Offers a low-cost investment option for accessing the small-cap market.
- Replicates the index's holdings to minimize tracking error.
- Maintains a low expense ratio to enhance cost-effectiveness.
- Provides diversification across a broad range of small-cap stocks.
- Offers a passively managed investment strategy.
How Does VSMAX Make Money?
- Tracks a benchmark index of small-cap stocks.
- Generates revenue through a small percentage-based expense ratio charged on assets under management (AUM).
- Maintains a diversified portfolio of small-cap stocks to replicate the index's performance.
What Industry Does VSMAX Operate In?
VSMAX operates within the asset management industry, specifically focusing on index funds. The industry is characterized by increasing demand for passive investment strategies and low-cost investment options. VSMAX competes with other small-cap index funds and ETFs, as well as actively managed small-cap funds. The growth of the asset management industry is driven by factors such as rising disposable incomes, increasing awareness of investment opportunities, and the growing popularity of retirement savings plans. VSMAX benefits from the trend towards passive investing and its established position within the Vanguard Group.
Who Are VSMAX's Key Customers?
- Individual investors seeking exposure to small-cap stocks.
- Financial advisors looking for low-cost investment options for their clients.
- Retirement plan participants seeking diversified investment options.
- Institutional investors seeking to allocate a portion of their assets to small-cap equities.
How Vanguard Small-Cap Index Fund Admiral Shares Is Valued
Relative to its peer group, VSMAX's quantitative score of 47/100 is roughly in line with the peer average of 45/100.
VSMAX Financials
Bull Case vs Bear Case
Bull Case
- VSMAX benefits from the broad diversification inherent in a small-cap index fund, mitigating risk associated with individual stock performance. Think of it as betting on the overall health of the small-cap sector, not a single horse.
- Recent market trends suggest increased investor appetite for small-cap stocks, potentially driving inflows into funds like VSMAX. This is similar to the renewed interest in value stocks we saw in early 2021.
- The fund's low expense ratio makes it an attractive option for long-term investors seeking cost-effective exposure to the small-cap market. It's like choosing the budget airline with surprisingly good service.
- Positive sentiment within the social trading community regarding small-cap growth potential could translate into increased demand for VSMAX shares. This echoes the social media-driven interest in meme stocks, albeit on a more fundamentally sound basis.
Bear Case
- VSMAX's performance is heavily reliant on the overall health of the small-cap market, making it vulnerable to economic downturns. Remember the impact of the 2008 financial crisis on small businesses.
- Negative community sentiment surrounding the broader market could dampen enthusiasm for VSMAX, regardless of its diversification benefits. It's like trying to sell ice cream on a rainy day.
- Recent insider selling activity within some of the underlying companies in the index could signal concerns about future performance. This is akin to company executives quietly reducing their holdings before bad news breaks.
- The fund's broad diversification can also limit its upside potential, as gains in some holdings may be offset by losses in others. It's a balanced approach, but not one that leads to explosive growth.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
VSMAX Latest News
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As Small-Cap Outperformance Continues, These 2 ETFs Provide Exposure
Yahoo! Finance: VSMAX News · May 21, 2026
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Should Vanguard Small-Cap Index Fund ETF Shares (VB) Be on Your Investing Radar?
Yahoo! Finance: VSMAX News · May 21, 2026
VSMAX Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for VSMAX.
Price Targets
Wall Street price target analysis for VSMAX.
VSMAX MoonshotScore
What does this score mean?
The MoonshotScore rates VSMAX's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
What Investors Ask About Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) — Financial Services
What does Vanguard Small-Cap Index Fund Admiral Shares do?
Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) provides investors with broad exposure to the U.S. small-cap equity market. It operates as a passively managed index fund, tracking the performance of a benchmark index composed of small-sized companies across various sectors. VSMAX offers a low-cost and diversified investment option for those seeking to allocate a portion of their portfolio to small-cap stocks. By replicating the index's holdings, the fund aims to minimize tracking error and deliver returns that closely align with the overall performance of the small-cap market.
What do analysts say about VSMAX stock?
VSMAX is generally viewed as a cost-effective way to gain exposure to the U.S. small-cap equity market. Analysts note its low expense ratio and passive management style as key advantages. However, they also caution investors about the fund's higher volatility compared to large-cap funds and the potential for underperformance during economic downturns. Overall, VSMAX is considered a suitable option for investors seeking long-term capital appreciation through small-cap exposure, while acknowledging the inherent risks associated with this asset class. The fund's performance is closely tied to the overall health and growth of the small-cap market.
What are the main risks for VSMAX?
The main risks for VSMAX include higher volatility compared to large-cap funds, potential underperformance during economic downturns, and competition from other low-cost index funds. Small-cap stocks are generally more sensitive to market fluctuations and economic conditions than large-cap stocks, which can lead to greater price swings in VSMAX. Additionally, the fund's passive management style limits its ability to outperform the market during periods of market turbulence. Competition from other low-cost index funds also poses a risk to VSMAX's market share and growth potential. Investors should carefully consider these risks before investing in VSMAX.
How sensitive is VSMAX to interest rate changes?
VSMAX's sensitivity to interest rate changes is indirect, primarily affecting the valuations of the underlying small-cap companies it holds. Rising interest rates can increase borrowing costs for these companies, potentially impacting their profitability and growth prospects. Sectors within the small-cap market, such as financials and real estate, may be particularly sensitive to interest rate movements. While VSMAX itself does not have a net interest margin, the overall performance of the fund can be influenced by the impact of interest rate changes on the earnings and valuations of its constituent companies. Investors should monitor interest rate trends and their potential effects on the small-cap market when evaluating VSMAX.
How is VSMAX adapting to fintech disruption?
As a passively managed index fund, VSMAX's adaptation to fintech disruption is primarily reflected in the evolving composition of its underlying index. The fund's exposure to fintech companies and traditional financial services firms adapting to fintech innovations will change over time as the index is rebalanced. VSMAX benefits from the overall growth and innovation within the small-cap market, including the emergence of disruptive fintech companies. However, the fund's passive management style means it does not actively select or invest in specific fintech companies. Investors seeking more targeted exposure to fintech may consider actively managed funds or ETFs focused on the fintech sector.
What are the key factors to evaluate for VSMAX?
Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) holds an AI score of 47/100 (low). Not financial advice.
How frequently does VSMAX data refresh on this page?
VSMAX prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven VSMAX's recent stock price performance?
Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Low expense ratio. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending for VSMAX
- Financial data is based on available information and may be subject to change.