Vanguard Small-Cap Value vs iShares Russell 2000 Value: Which ETF Is the Better Buy Right Now?
Key takeaways
- Both funds target the same segment of the market -- small companies that trade at low price-to-book or price-to-earnings ratios.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- Vanguard Small-Cap Value ETF is the more affordable option with an expense ratio of 0.05%, compared to 0.24% for iShares Russell 2000 Value ETF.
Both funds target the same segment of the market -- small companies that trade at low price-to-book or price-to-earnings ratios. However, they track different indexes, leading to distinct differences in risk, return, and portfolio composition that investors could consider before choosing between them.
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 as of June 23's closing price.
Vanguard Small-Cap Value ETF is the more affordable option with an expense ratio of 0.05%, compared to 0.24% for iShares Russell 2000 Value ETF. The Vanguard fund also provides a slightly higher payout for income-seeking investors.