The Vanguard Small-Cap ETF (VB) outperforms the iShares Core SP Small-Cap ETF (IJR) in one-year and five-year total returns. VB holds over twice as many stocks, with a slight focus on industrials and technology. Both ETFs offer low-cost, diversified exposure to the U.S. small-cap market with similar yields and risk profiles. VB has a lower expense ratio at 0.05% compared to IJR’s 0.06%. In terms of performance and risk, both have experienced similar drawdowns over the past five years. VB has a wider portfolio with 1,357 stocks, while IJR focuses on 632 holdings and leans more towards financial services and industrials.
Investors can consider factors like diversification, fees, dividend yield, and historical performance when choosing between VB and IJR. VB offers greater diversification with slightly lower fees and a higher total return over the past five years. On the other hand, IJR has a slightly higher dividend yield, which may appeal to income-seeking investors. Both ETFs have underperformed the S&P 500 but have similar volatility levels.
For more information on ETF investing, investors can refer to the full guide linked in the article. The Motley Fool offers insights on the 10 best stocks to consider for investors to buy right now. Please note that the author of the article has no position in the mentioned stocks, and the views expressed are personal opinions. The article also includes a disclaimer regarding the views and opinions expressed.
Read more at Nasdaq: VB vs. IJR: Vanguard Small Cap ETF Delivers Higher Returns With a Lower Dividend Yield
