Source: Vanguard Huge pool of securities, well-diversified, reasonably valued, and not top-heavy When you pursue a high-beta space such as small caps, it's preferable to spread your exposure over a wider horizon, and this ETF facilitates that, giving you access to 2058 stocks, with not a single stock accounting for more than 0.6% of the total holdings. The benefit of investing in something like a VTWO is that style-wise, it is a blended ETF, where you get exposure to both growth and value stocks, and you're not faced with the dilemma of attempting to get the timing right with picking one style over the other.