Key Points
The iShares Core S&P Small-Cap ETF (NYSEMKT:IJR) gives investors concentrated exposure to the S&P SmallCap 600, while the Vanguard Small-Cap ETF (NYSEMKT:VB) offers a broader, lower-cost slice of the small-cap market.
Investors looking for small-company growth often compare these two funds. Both target smaller U.S. companies, but their underlying indexes and stock-selection rules lead to different holdings counts and sector tilts — which affects how they perform across different market cycles.
Snapshot (cost & size)
MetricVBIJRIssuerVanguardiSharesExpense ratio0.03%0.06%1-year return (as of July 8, 2026)23.73%29.95%Dividend yield1.19%1.11%Beta1.101.08AUM$188.6 billion$111.3 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
VB is the cheaper option, with a 0.03% expense ratio compared to IJR’s 0.06%. Both funds offer comparable dividend yields of roughly 1.1% to 1.2%.
Performance & risk comparison
MetricVBIJRMax drawdown (5 yr)(28.16%)(28.01%)Growth of $1,000 over 5 years (total return)$1,445$1,430
What’s inside
Launched in 2000, IJR tracks the S&P SmallCap 600 Index and holds 652 stocks. Its largest sector weights include financial services at 17.0%, industrials at 15.6%, and technology at 15.5%. Its top equity positions include FormFactor (NASDAQ:FORM) (NYSE:FORM) at 0.7%, Viasat (NASDAQ:VSAT) at 0.7%, and Molina Healthcare (NYSE:MOH) at 0.6%.
VB tracks the CRSP US Small Cap Index and holds a much larger portfolio of 1,310 stocks. Its top sector weights include industrials at 20.6%, technology at 19.3%, and financial services at 12.3%. The fund’s largest holdings include Flex (NASDAQ:FLEX) at 0.7%, Astera Labs (NASDAQ:ALAB) at 0.6%, and Ciena (NYSE:CIEN) at 0.5%. VB was launched in 2004.
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What this means for investors
The main difference between these two funds comes down to a familiar trade-off: concentration versus breadth. IJR’s tighter focus on the S&P SmallCap 600 — an index with built-in profitability screens — has helped it edge out VB over the past year, and that quality filter is worth noting. Vanguard’s CRSP-based index doesn’t screen for profitability in the same way, which means VB captures a wider swath of the small-cap universe, including younger or less established companies that IJR would leave out.
IJR’s recent outperformance shouldn’t be read as a permanent edge. Small-cap ETFs like these can swing significantly depending on where the market cycle stands — IJR’s profitability tilt should help it hold up relatively better when investors get cautious, while VB’s broader net can capture more upside when smaller, riskier names rally.
For cost-conscious investors, VB’s rock-bottom 0.03% expense ratio is hard to beat, and its much larger holdings count gives investors exposure to a wider slice of the small-cap market. For those willing to pay a few extra basis points, IJR’s quality screen has historically added a bit of ballast during rockier stretches. Either way, both funds offer a straightforward, low-cost way to add small-cap exposure to investors’ portfolios
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Andy Gould has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ciena and iShares Core S&P Small-Cap ETF. The Motley Fool recommends Astera Labs and Flex. The Motley Fool has a disclosure policy.
