State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) and Vanguard Small-Cap ETF (VB) both target U.S. small-cap stocks. VB covers a broader market slice with more companies and higher one-year returns, while SPSM has a lower expense ratio.

SPSM is more cost-effective with a 0.03% expense ratio, compared to VB’s 0.05%. SPSM also offers a slightly higher dividend yield. VB tracks a broad small-cap index, holding 1,357 stocks with a focus on industrials, technology, and healthcare.

VB and SPSM offer low-cost access to small-cap equities. VB has 1,357 stocks with a tilt towards industrials, technology, and healthcare, while SPSM has 607 companies with a focus on financial services, industrials, and technology.

Both ETFs have differences in risk and sector mix. VB is larger, with $163 billion in assets, while SPSM has a smaller asset base. VB leans more towards industrials, while SPSM allocates more to financials.

Investors can choose VB for maximum diversification across the small-cap universe or SPSM for a tighter portfolio of established small caps at a lower cost. Both ETFs require a tolerance for market swings due to small-cap volatility.

Read more at Yahoo Finance: Maximum Reach or Strategic Focus?