Vanguard S&P Small-Cap 600 ETF (VIOO)

small-cap sp-600 quality-screen profitability

Quality screening sets this small-cap fund apart from its peers by tracking an index that requires profitability before inclusion. The S&P 600 index mandates positive earnings over the trailing twelve months, effectively filtering out speculative companies that often populate the small-cap universe. This built-in quality screen has historically led to better risk-adjusted returns compared to broader small-cap indices that include unprofitable firms.