Vanguard Small-Cap ETF (NYSEMKT:VB) offers a lower-cost, highly liquid index strategy, while JPMorgan BetaBuilders U.S.
Small Cap Equity ETF (NYSEMKT:BBSC) focuses on a more concentrated slice of the small-cap universe
Small-capitalization stocks often provide higher growth potential than large companies, albeit with increased volatility. Investors choosing between these two funds are deciding between a massive, ultra-low-cost Vanguard staple and a newer JPMorgan alternative that targets the 95th to 99th percentiles of market capitalization. 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. The Vanguard fund is the more affordable option with a 0.03% expense ratio compared to 0.09% for the JPMorgan fund.