Better Value ETF: Vanguard's Small Cap-Focused VBR vs. the iShares IJJ Targeting Mid-Cap Stocks
VBR's 0.05% expense ratio and $67.8 billion in assets provide broader diversification across 841 holdings versus IJJ's 303 stocks.
Overview
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.
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.