Small-Cap Value ETFs: Vanguard vs. iShares

Investors choosing between Vanguard Small-Cap Value ETF (NYSEMKT:VBR) and iShares Morningstar Small-Cap Value ETF (NYSEMKT:ISCV) must weigh the Vanguard fund's lower costs and superior long-term performance against the iShares fund's broader portfolio and slightly higher yield.

Small-capitalization value stocks often provide a diversification benefit for portfolios dominated by large-cap growth. While both VBR and ISCV target this specific corner of the market, differences in indexing strategies, costs, and liquidity profiles distinguish these two veterans of the ETF space. Investors often look to these funds to capture the value factor within smaller, more nimble companies that may be overlooked by the broader market. This comparison explores how the two funds balance risk, income, and long-term growth potential in the small-cap arena.

Beta measures price volatility relative to the S 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.

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Source Fool.com