Technology is VXF’s largest sector allocation at 18.80% followed by consumer discretionary at 14.20%, indicating the fund is home to a fair amount of growth stocks though it is classified as a blend fund. Financial services and industrial stocks combine for over 30% of VXF’s weight.
“The fund further reduces its turnover by using representative sampling to effectively track its underlying index. Smaller, less-liquid stocks are usually more expensive to trade than large-cap stocks. The fund keeps costs down by sampling among the smallest stocks in the index while accurately maintaining an accurate representation of its characteristics,” according to Morningstar.
VXF earns a Gold rating from Morningstar.
For more information on ETFs, visit our ETF 101 category.