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Columnist Picks Upbound Over Vanguard’s VTWO After Strict Russell 2000 Screen

A strict screen combining yield thresholds with valuation limits narrowed the index to four names.

Overview

  • Yahoo Finance’s analysis selects Upbound (NASDAQ: UPBD) as the preferred single-stock alternative to broad small-cap exposure via the Vanguard Russell 2000 ETF.
  • VTWO remains a low-cost diversified option with a 0.03% expense ratio and exposure to the smallest two-thirds of the Russell 3000, benefiting from recent small-cap momentum.
  • The author filtered for a dividend yield above the index’s 1.1% average, current profitability, a trailing P/E of 18 or less, and a forward P/E below 5, which produced four candidates.
  • Upbound, rebranded from Rent-A-Center in 2023, also operates Acima, a lease-to-own platform the article says serves about 11,000 retailers beyond its own stores.
  • The article reports Upbound recently acquired the Brigit personal-finance app, described as having more than 12 million users and offering budgeting, credit tools, and small cash advances.