While the iShares S&P Mid-Cap 400 Value ETF (NYSEMKT:IJJ) targets the middle of the market, the Vanguard Morningstar Small-Cap Value ETF (NYSEMKT:VBR) provides more affordable access to smaller-sized value companies with a much larger portfolio. Both ETFs seek to provide exposure to undervalued segments of the U.S. market, though they target different size tiers. The iShares fund focuses on mid-cap stocks, which often attempt to balance the stability of large companies with the growth potential of smaller ones, while the Vanguard fund leans strictly into the small-capitalization space.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard Morningstar Small-Cap Value ETF stands out as the more affordable choice for cost-conscious investors with an expense ratio of 0.05%, which is notably lower than the 0.18% charged by the iShares S&P Mid-Cap 400 Value ETF. Investors may also notice that the Vanguard fund offers a slightly higher distribution yield. Growth of $1,000 over 5 years (total return) The Vanguard Morningstar Small-Cap Value ETF is a broad portfolio of 841 holdings focusing on Financial Services (17%), Industrials (17%), and Consumer Cyclical (14%) sectors.
Its largest positions include Jabil (NYSE:JBL) at 0.87%, NRG Energy (NYSE:NRG) at 0.66%, and Tapestry (NYSE:TPR) at 0.63%. The fund was launched in 2004. The Vanguard Morningstar Small-Cap Value ETF has paid $4.32 per share over the trailing 12 months, which on its recent ~$251.00 share price works out to a 1.7% yield.
The iShares S&P Mid-Cap 400 Value ETF holds 303 stocks, with heavy weights in Financial Services (22%), Industrials (18%), and Consumer Cyclical (14%). Its top holdings include U.S. Foods (NYSE:USFD) at 1.38%, Reliance Steel & Aluminum (NYSE:RS) at 1.23%, and TD Synnex (NYSE:SNX) at 1.08%.
This fund was launched in 2000. The iShares S&P Mid-Cap 400 Value ETF has paid $2.34 per share over the trailing 12 months, which on its recent ~$151.28 share price works out to a 1.5% yield. For more guidance on ETF investing, check out the full guide at this link.
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