Which Small-Cap ETF Is the Better Buy: Vanguard's VB or JPMorgan's BBSC?
JPMorgan's concentrated small-cap fund outpaced Vanguard over one year, but carries higher volatility and a steeper expense ratio.
Overview
Vanguard Small-Cap ETF (NYSEMKT:VB) offers a lower-cost, highly liquid index strategy, while JPMorgan BetaBuilders U.S. Small Cap Equity ETF (NYSEMKT:BBSC) focuses on a more concentrated slice of the small-cap universe.
Small-capitalization stocks often provide higher growth potential than large companies, albeit with increased volatility. Investors choosing between these two funds are deciding between a massive, ultra-low-cost Vanguard staple and a newer JPMorgan alternative that targets the 95th to 99th percentiles of market capitalization.
Details
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.
Source
Originally published at www.fool.com.