Vanguard Small-Cap Value ETF Tops State Street on Cost and Yield
Compare diversification, sector exposure, and index strategies as these two small-cap value ETFs take different approaches to balancing risk and return.
Overview
Vanguard Small-Cap Value ETF (NYSEMKT:VBR) provides a lower expense ratio and better long-term returns than State Street SPDR S&P 600 Small Cap Value ETF (NYSEMKT:SLYV), which focuses on a smaller subset of profitable companies.
These two funds are popular choices for investors seeking small-cap value exposure, a segment known for higher volatility and long-term growth potential. While both target companies with low price-to-book and price-to-earnings ratios, they follow different indexes and offer distinct cost structures and liquidity profiles. Investors often use these vehicles to capture the value factor within the small-cap universe, hoping to benefit from a recovery in undervalued stocks.
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.
Details
Source
Originally published at www.fool.com.