State Street SPDR Portfolio S&P 600 Small Cap ETF (NYSEMKT:SPSM) and Vanguard Small-Cap ETF (NYSEMKT:VB) provide low-cost access to the smallest companies in the U.S. market.
They offer identical costs but vary significantly in their portfolio breadth and sector concentrations
While the State Street fund tracks the S&P SmallCap 600 Index, which requires companies to meet specific profitability criteria, the Vanguard fund follows the CRSP US Small Cap Index. This leads to distinct differences in portfolio depth and volatility profiles. Snapshot (cost & size) Both funds are exceptionally affordable, each charging an expense ratio of 0.03%.
While the cost to own is identical, the cash flow differs slightly. Investors in the State Street fund currently receive a higher trailing-12-month distribution yield of 1.4% compared to the 1.2% yield offered by the Vanguard fund. Performance & risk comparison What’s inside The Vanguard Small-Cap ETF provides deep exposure to the small-cap space with 1,310 holdings, offering a broad-based approach that limits the impact of any single company.