Better Small-Cap ETF: State Street SPSM vs. JPMorgan BBSC
SPSM costs one-third as much to own and yields more, but BBSC's 851 holdings offer broader diversification and stronger recent performance.
Overview
The State Street SPDR Portfolio S&P 600 Small Cap ETF (NYSEMKT:SPSM) offers a significantly lower expense ratio and higher yield than the JPMorgan BetaBuilders U.S. Small Cap Equity ETF (NYSEMKT:BBSC).
Investors seeking small-cap exposure often choose between broad market indices and more targeted strategies. While both funds target the smaller end of the market capitalization spectrum, they utilize different benchmarks and cost structures to provide that exposure to investors through diversified portfolios.
Details
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.
Source
Originally published at www.fool.com.