NAESX Vanguard Small Cap Index Inv

The Vanguard Small-Cap Index Fund Investor Shares (NAESX) operates as an index fund that seeks to provide investors with exposure to the U.S. small-cap equity market. The fund holds a strong diversity, with nearly 1,500 total holdings, allowing investors to gain exposure to a wide variety of stocks through just one ticker. As a small cap product, NAESX will come with a high risk/reward outlook, as small caps tend to be quite volatile. On the flip side, small cap companies typically have the most room for growth and can potentially provide investors with handsome returns over the long run.

NAESX would not be considered a core building block in your portfolio, but rather as a complement to existing equity exposure, especially one that is lacking in small caps. Given its volatility, older investors or those closer to retirement would probably not grant this fund much weight, if any, but those that have long horizons may find themselves able to take on the risk for the potential reward. Investors should note that NAESX carries a small dividend yield as well. The fund charges 24 basis points for investment and maintains an accessible minimum investment threshold of just $3,000.