Vanguard Small-Cap ETF (VB) and iShares Morningstar Small-Cap ETF (ISCB) are both low-cost small-cap ETFs targeting diversified U.S. exposure. ISCB has a lower expense ratio of 0.04% compared to VB’s 0.05%, with ISCB showing a higher one-year return of 14.3%. VB boasts greater liquidity, while ISCB holds more stocks and leans towards financial services.

ISCB holds about 1,540 stocks with 19% in industrials, 16% in technology, and 15% in financial services. It tracks a Morningstar index, launched over 21 years ago. VB has 1,357 stocks, with more exposure to industrials and technology. Both ETFs diversify across sectors, but ISCB’s portfolio is slightly broader.

VB has a higher AUM of $163.3 billion compared to ISCB’s $257.4 million. ISCB has a marginally deeper drawdown and a max drawdown of 29.94% over five years, slightly higher than VB’s 28.15%. Despite slight differences, both ETFs have similar dividend yields, betas, and portfolio construction. VB has a better track record since 2004.

ISCB has a higher one-year return of 14.3%, while VB has a return of 10.5%. ISCB’s holdings are derived from a Morningstar index, while VB includes smaller stocks within Vanguard’s universe. Both ETFs offer similar benefits, but VB’s size and track record make it a preferred choice for many investors.

Read more at Yahoo Finance: Vanguard’s VB or iShares’ ISCB?