Vanguard Small-Cap Growth ETF (VBK) Covered Calls
The Vanguard Small-Cap Growth ETF (VBK) is a passively managed fund that tracks the CRSP U.S. Small-Cap Growth Index. It provides low-cost exposure to a diversified basket of smaller U.S. companies that exhibit high growth potential. Designed for long-term investors, the fund spans various sectors, primarily technology, industrials, and healthcare, offering a broad-based approach to the U.S. small-cap growth equity market.
You can sell covered calls on Vanguard Small-Cap Growth ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for VBK (prices last updated Mon 4:16 PM ET):
| Vanguard Small-Cap Growth ETF (VBK) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 289.59 | -5.30 | 287.65 | 293.49 | 240K | - | 8.8 |
| Covered Calls For Vanguard Small-Cap Growth ETF (VBK) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Apr 17 | 290 | 8.20 | 285.29 | 1.7% | 32.7% | |
| May 15 | 290 | 13.10 | 280.39 | 3.4% | 26.4% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
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Core Business and Products
VBK utilizes a full-replication strategy to capture the performance of the U.S. small-cap growth segment. By holding hundreds of securities, it reduces idiosyncratic risk associated with single-stock volatility. The fund is favored for its ultra-low expense ratio and liquidity, making it a staple for investors seeking to tilt their portfolios toward high-growth, smaller-sized companies that are often poised for rapid expansion.
Top 3 Holdings
The fund’s performance is influenced by its diversified holdings, with these top exposures leading the current allocation:
These companies represent a cross-section of the aerospace, telecommunications, and industrial sectors; all maintain active options markets, allowing for strategic hedging or income generation.
Competitive Landscape
VBK operates in a competitive space, with primary optionable peers including:
- iShares Russell 2000 Growth ETF (IWO): A direct competitor that tracks the Russell 2000 Growth Index; it is often compared to VBK based on index methodology and trading liquidity.
- iShares S&P Small-Cap 600 Growth ETF (IJT): Targets a more concentrated, quality-focused subset of the small-cap market, often used by investors seeking to mitigate some of the volatility found in broader indices like VBK.
- Invesco S&P SmallCap 600 Pure Growth ETF (RZG): Competes via a "pure-style" methodology that selects stocks with the strongest growth characteristics, resulting in a more concentrated portfolio than VBK.
Strategic Outlook and Innovation
As an evergreen, low-cost instrument, VBK serves as a core growth component. While small-cap growth stocks are inherently more volatile and sensitive to economic financing conditions than large-caps, VBK’s broad diversification provides a transparent way to access this market segment. The fund remains an efficient tool for investors looking to capture long-term growth trends in nascent industries before these companies mature into large-cap constituents.
| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV covered calls | 6. | QQQ covered calls | 1. | REPL covered calls | |
| 2. | EEM covered calls | 7. | GLD covered calls | 2. | BE covered calls | |
| 3. | NVDA covered calls | 8. | TLT covered calls | 3. | SGML covered calls | |
| 4. | KWEB covered calls | 9. | HYG covered calls | 4. | ONDS covered calls | |
| 5. | SPY covered calls | 10. | EWZ covered calls | 5. | NKE covered calls | |
Want more examples? VB Covered Calls | VBR Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
