Vanguard Small-Cap Value ETF (VBR) outperforms iShares Russell 2000 Value ETF (IWN) in one-year total return but lags over five years. VBR boasts a lower expense ratio appealing to cost-conscious investors, while sector exposure varies with IWN focused on financials and VBR on industrials and consumer cyclicals.

VBR and IWN offer broad U.S. small-cap value stock exposure but differ in index tracking, composition, and risk. VBR has a lower expense ratio, higher dividend yield, and appeals to income-focused investors compared to IWN. Investors should consider these factors to determine the best fit.

VBR has a 9.2% annualized total return since 2004, outperforming IWN at 7.8%. Factors favoring VBR include lower expense ratio, beta, drawdown, higher dividend yield, less financial industry exposure, and larger asset base. VBR emerges as the superior small-cap value ETF for long-term investors.

IWN tracks 1,407 U.S. small-cap value stocks with a focus on financials, real estate, and industrials. Its top holdings include Echostar, Hecla Mining, and UMB Financial. VBR holds 841 stocks, emphasizing industrials, financial services, and consumer cyclicals, with top positions in NRG Energy, Sandisk, and EMCOR Group.

For more information on ETF investing, refer to the full guide provided in the link. Investors can explore the nuances and differences between VBR and IWN to make informed decisions for their portfolios.ETF, expense ratio, dividend yield, beta, AUM, drawdown, small-cap, value characteristics, sector tilt, consumer cyclicals, total return, index definitions available.

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Josh Kohn-Lindquist has no position in mentioned stocks. The Motley Fool holds positions in and recommends EMCOR Group. For more information, refer to the disclosure policy. “Vanguard vs. iShares: Is VBR or IWN the Superior Small-Cap Value ETF?” was originally published by The Motley Fool.

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