SPSM vs. VB: Which Small-Cap ETF Should You Buy Today?
Portfolio size, sector mix, and underlying index set these two low-cost funds apart for investors seeking small-cap exposure.
SPSM vs. VB: Which Small-Cap ETF Should You Buy Today?
Overview
State Street SPDR Portfolio S&P 600 Small Cap ETF (NYSEMKT:SPSM) and Vanguard Small-Cap ETF (NYSEMKT:VB) provide low-cost access to the smallest companies in the U.S. market. They offer identical costs but vary significantly in their portfolio breadth and sector concentrations.
While the State Street fund tracks the S&P SmallCap 600 Index, which requires companies to meet specific profitability criteria, the Vanguard fund follows the CRSP US Small Cap Index. This leads to distinct differences in portfolio depth and volatility profiles.
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.
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Source
Originally published at www.fool.com.
