VBR vs. IWN: Which Small-Cap Value ETF Is the Better Buy?
The iShares Russell 2000 Value ETF (IWN) outperformed over the past year, but the Vanguard Morningstar Small-Cap Value ETF (VBR) -- with its lower fees -- delivered stronger five-year returns.
Overview
The iShares Russell 2000 Value ETF (NYSEMKT:IWN) provides broader exposure to small-cap value stocks, while the Vanguard Morningstar Small-Cap Value ETF (NYSEMKT:VBR) offers a lower-cost alternative with a slightly higher dividend yield.
Small-cap value stocks often provide a blend of growth potential from smaller firms and a margin of safety from lower valuations. IWN and VBR both seek to capture this segment of the market, but they track different benchmarks, which results in distinct sector exposures and risk profiles for investors to consider.
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.