Similarly, the Vanguard Small-Cap ETF (VB) rose 10.6%, easily ahead of the Vanguard Large-Cap ETF (VV)’s 8.2%. After a rough 2022, U.S. stocks bounced back in the first six weeks of 2023 amid optimism that cooling inflation will result in a stronger economy and a return to earnings growth. Multi-factor small-cap ETFs can make sense for advisors wanting a more discerning, fundamental approach to gaining exposure to potential up-and-coming companies.