Vanguard Small-Cap Value ETF (NYSEMKT:VBR) provides a lower-cost, broader approach to small-cap value, while iShares Russell 2000 Value ETF (NYSEMKT:IWN) offers potentially higher volatility and more concentrated sector tilts.
Both funds target the same segment of the market — small companies that trade at low price-to-book or price-to-earnings ratios
However, they track different indexes, leading to distinct differences in risk, return, and portfolio composition that investors could consider before choosing between them. Snapshot (cost & size) Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
Dividend yield is the trailing-12-month distribution yield as of June 23’s closing price. Vanguard Small-Cap Value ETF is the more affordable option with an expense ratio of 0.05%, compared to 0.24% for iShares Russell 2000 Value ETF. The Vanguard fund also provides a slightly higher payout for income-seeking investors.