Fund Evaluator:
Vanguard Strategic Small-Cap Equity Inv (VSTCX)
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Fund Details
Vanguard Strategic Small-Cap Equity Inv Overview
Vanguard Strategic Small-Cap Equity Inv (VSTCX) is an actively managed U.S. Equity Small Blend fund. Vanguard launched the fund in 2006.
The investment seeks long-term capital appreciation. The fund invests in the stocks of small-size U.S. companies. Under normal circumstances, it invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in small-cap equity securities.
About Vanguard Strategic Small-Cap Equity Inv (VSTCX)
There are 1 members of the management team with an average tenure of 5.34 years: Cesar Orosco (2021). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: DJ US Total Stock Market TR USD index with a weighting of 100% and MSCI US Small Cap 1750 GR USD index with a weighting of 100%. Vanguard Strategic Small-Cap Equity Inv has 636 securities in its portfolio. The top 10 holdings constitute 6.9% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Vanguard Strategic Small-Cap Equity Inv is part of the Equity global asset class and is within the U.S. Equity fund group. Vanguard Strategic Small-Cap Equity Inv has 2.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.7%. There is 2.7% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Vanguard Strategic Small-Cap Equity Inv has 0.6% of the portfolio in cash.
Assets Under Management
The fund has $2 billion in total assets, which is above the $694 million average for the Small Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
VSTCX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard Strategic Small-Cap Equity Inv expense ratio is below average compared to funds in the Small Blend category. Vanguard Strategic Small-Cap Equity Inv has an expense ratio of 0.21%, which is 80% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard Strategic Small-Cap Equity Inv has a portfolio turnover rate of 66%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 65% for the Small Blend category.
Recently, in the month of June 2026, Vanguard Strategic Small-Cap Equity Inv returned 6.8%, which earned it a grade of B, as the Small Blend category had an average return of 5.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Vanguard Strategic Small-Cap Equity Inv has a trailing yield of 0.81%, which is above the 0.41% category average. The fund normally distributes its income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Vanguard Strategic Small-Cap Equity Inv Grades
Year to date, the fund has returned 25.4%, 3.7 percentage points better than the category, which translates into a grade of A. The fund has returned 45.3% over the past year (grade of A), 23.2% over the past three years (grade of A) and 13.2% per year over the past five years (grade of A) and 13.7% per year over the past 10 years (grade of A).
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VSTCX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| VSTCX Return (NAV) | 6.8% | 22.8% | 45.3% | 23.2% | 13.2% | 13.7% |
| VSTCX Grade | B | B | A | A | A | A |
| +/- Category | 0.9% | 3.0% | 11.4% | 6.8% | 5.3% | 2.5% |
| Small Blend Avg | 5.9% | 19.8% | 33.9% | 16.4% | 7.9% | 11.2% |
| VSTCX Tax Cost Ratio | na | na | 1.8% | 1.7% | 2.3% | 1.7% |
VSTCX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VSTCX Return (NAV) | 25.4% | 15.2% | 15.9% | 21.3% | -13.0% | 33.5% | 8.4% | 22.1% | -11.9% | 10.3% | 20.6% |
| VSTCX Grade | A | A | A | A | A | A | D | F | C | F | C |
| +/- Category | 3.7% | 7.3% | 4.3% | 4.8% | 3.6% | 10.3% | -6.0% | -3.3% | -0.1% | -3.7% | 0.4% |
| Small Blend Avg | 21.7% | 7.9% | 11.6% | 16.5% | -16.5% | 23.2% | 14.4% | 25.5% | -11.8% | 14.1% | 20.2% |
| Risk Measures | |
| Standard Deviation: | 19.5% |
| Total Risk Index: | 1.61 - High |
| Category Risk Index: | 1.06 - High |
| Category Risk Grade: | F (82% Rank) |
| Beta: | 1.17 |
| R-Squared: | 61% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 0.8% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $2915 Mil |
| Fund Total Assets: | $2,916 Mil |
| Share Class Type: | Inv |
| Portfolio Turnover: | 66% |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 5.3 years | |||
| Average Tenure: 5.3 years | |||
| Managers (Year): Orosco Cesar (2021) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 636 |
| % in Top 10 Holdings: | 6.9% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 2.7% |
Portfolio Allocation |
|
| Domestic Stock: | 96.7% |
| Foreign Stock: | 2.7% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.6% |
Purchase Information
| Fund Family: | Vanguard |
| Phone Number: | 800-662-7447 |
| Website: | www.vanguard.com |
| Status: | Open |
| Inception Date: | April 24, 2006 |
| Min. Initial Purchase: | $3,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.21% ( Rating : Below Avg ) |
| Category Average Expense Ratio (%): | 1.05% |
| Share Class: | Vanguard Strategic Small-Cap Equity Inv |
| Min. Subsequent Purchase: | $ 1 |
| Min. Subsequent IRA Purchase: | $ 0 |
