Vanguard Small Cap ETF (NYSEArca: VB)
Expense Ratio: 0.09%
Comment: The ETF provides a cheap way to access a broad group of small companies, covering 1,482 small capitalization stocks. Small-caps have historically provide some diversification benefits and have generated greater returns that large-caps over the long-term. However, the asset category is more sensitive to short-term cycles. Alternatively, the Vanguard Small-Cap Growth (NYSEArca: VBK), which follows companies whose earnings are expected to be higher-than-average, and Vanguard Small-Cap Value ETF (NYSEArca: VBR), which includes stocks that trade at a lower price relative to fundamentals, both come with a 0.09% expense ratio as well.