SPSM vs IJR: Which Small-Cap ETF Offers Better Value?
Both track identical indexes with nearly matching returns, but one charges half the fee while delivering a higher dividend yield.
Overview
iShares Core S&P Small-Cap ETF (NYSEMKT:IJR) and State Street SPDR Portfolio S&P 600 Small Cap ETF (NYSEMKT:SPSM) offer nearly identical exposure to U.S. small-cap stocks, differing primarily in expense ratio, liquidity, and assets under management.
Small-capitalization stocks often provide growth potential that large-cap peers lack, though they typically come with higher volatility. Investors frequently use these vehicles to capture the "size premium," or the historical tendency for smaller companies to outperform larger ones over very long time horizons. Both funds track the S&P SmallCap 600 Index, but their histories and fee structures differ.
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-yr 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.