As part of Vanguard’s series of tax-managed investments, this fund offers investors exposure to small-capitalization stocks. Its unique, index-oriented approach attempts to track the benchmark, while keeping taxable gains to a minimum. One of the fund’s risks is its focus on small-cap companies, which can be a volatile segment of the market. Investors in higher tax brackets who have an investment time horizon of five years or longer and a high tolerance for risk may wish to consider this fund complementary to a well-balanced portfolio. Please note: It is possible that the fund will not meet its objective of being tax-efficient.