Comparing JPMorgan BetaBuilders U.S. Small Cap Equity ETF (CBOE:BBSC) and Vanguard Small-Cap ETF (VB 2.44%) reveals distinct choices in cost and diversification for investors seeking exposure to smaller American companies.
Both funds provide a path into the U.S. small-cap market, yet they differ in their construction and scale. BBSC targets the 95th to 99th percentiles of market capitalization, while VB tracks a broad index to capture a diversified group of small companies.
Snapshot (cost & size)
| Metric | BBSC | VB |
|---|---|---|
| Issuer | J.P. Morgan | Vanguard |
| Expense ratio | 0.09% | 0.03% |
| 1-yr return (as of June 3, 2026) | 36.0% | 28.8% |
| Dividend yield | 1.0% | 1.2% |
| Beta | 1.14 | 1.05 |
| AUM | $692.7 million | $177.4 billion |
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.
VB is significantly more affordable with an expense ratio of 0.03%, compared to 0.09% for BBSC. Additionally, the Vanguard fund provides a higher payout for income-seeking investors with its 1.2% trailing-12-month distribution yield.
Performance & risk comparison
| Metric | BBSC | VB |
|---|---|---|
| Max drawdown (5 yr) | (30.9%) | (28.2%) |
| Growth of $1,000 over 5 years (total return) | $1,379 | $1,410 |
What's inside
The Vanguard Small-Cap ETF (VB 2.44%) offers broad exposure through 1,357 holdings, with its largest sector weights in industrials at 21%, technology at 17%, and financial services at 13%. Its largest positions include EMCOR Group Inc (EME 3.44%) at 0.51%, Bloom Energy Corp (BE 9.05%) at 0.48%, and Ciena Corp (CIEN 8.85%) at 0.48%. This fund was launched in 2004 and has a trailing-12-month dividend of $3.50 per share.
The JPMorgan BetaBuilders U.S. Small Cap Equity ETF (BBSC 2.81%) is more concentrated with 782 holdings and focuses on technology at 18%, financial services at 17%, and healthcare at 16%. Its top holdings include TTM Technologies Inc (TTMI 9.32%) at 0.87%, Semtech Corp (SMTC 10.82%) at 0.79%, and Sitime Corp (SITM 10.86%) at 0.77%. Launched in 2020, BBSC has a trailing-12-month dividend of $0.89 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
As investors are steadily rotating out of large-cap stocks into less expensive investments, they are increasingly finding good values with small-cap stocks. This year, the Russell 2000 small-cap index has beaten the S&P 500 with a return of about 17% year-to-date and 40% over the past 12 months.
While both of these ETFs focus on small-caps, they look at slightly different areas of the universe The BBSC ETF includes small-cap between the 95th and 99th percentile of stocks, so it excludes the microcaps. Thus, it holds less stocks, about 728. The Vanguard ETF invests in a broader swath of the small-cap universe, holding about 1,300 stocks.
The JPMorgan ETF has been a slightly better performer YTD and beats the Vanguard ETF over the past 12 months. But the Vanguard ETF has better five-year annualized returns and has a lower expense ratio.
Both are solid options if you are looking for a small-cap ETF, but it is really hard to beat VBʻs miniscule 0.03% expense ratio and better longer-term returns.
