According to a Yahoo Finance analysis, the Vanguard Small-Cap Value ETF (VBR) is highly sensitive to the Federal Reserve's interest rate decisions. The market is currently pricing in a 57% chance of a rate hike at the Fed's upcoming meeting, with the federal funds rate potentially rising by at least 50 basis points over the next year. Small-cap companies, particularly value stocks, rely more on floating-rate bank credit lines and term loans, making them more vulnerable to rising interest rates compared to larger companies or broader market indices like the S&P 500.