Vanguard Small-Cap ETF (VB) offers a low-cost, broad small-cap play benefiting from gradual Fed rate cuts.

The Vanguard Small-Cap Index Fund ETF (VB) tracks the CRSP US Small Cap Index, holding about 1,300 mid-sized U.S. companies with a focus on steady growth and low fees. With Kevin Warsh expected as the new Federal Reserve Chair, a gradual path of interest rate cuts is anticipated, which benefits small-cap companies more due to their higher floating-rate debt. VB's structure reduces forced selling and keeps costs low, leading to strong long-term returns compared to alternatives like the iShares Russell 2000 ETF (IWM). VB suits investors wanting a diversified, affordable way to gain exposure to small caps amid a slow easing cycle, balancing growth potential with moderate risk.