Small-cap stocks should be a part of just about any well-balanced investment portfolio. Two to consider are State Street SPDR S&P 600 Small Cap Value ETF (SLYV +0.96%), which offers higher recent returns and a slight yield edge, and the Vanguard Small-Cap Value ETF (VBR +0.65%), which provides a lower expense ratio and broader diversification.
Small-cap value stocks offer a way to capture the size and value premiums historically observed in equity markets. This comparison examines whether the State Street fund’s concentrated, index-driven approach or the Vanguard fund’s ultra-low-cost, highly diversified portfolio better fits a long-term investment strategy.
Snapshot (cost & size)
| Metric | SLYV | VBR |
|---|---|---|
| Issuer | SPDR | Vanguard |
| Expense ratio | 0.15% | 0.05% |
| 1-yr return (as of June 12, 2026) | 39.10% | 27.95% |
| Dividend yield | 1.80% | 1.70% |
| Beta | 0.98 | 0.95 |
| AUM | $4.8 billion | $65.5 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 as of the closing prices of the funds on June 12, 2026.
The Vanguard fund is the more affordable option, charging a 0.05% expense ratio compared to 0.15% for the State Street fund. While SLYV offers a slightly higher distribution yield, the difference between the two payouts remains marginal for most income-focused investors.
Performance & risk comparison
| Metric | SLYV | VBR |
|---|---|---|
| Max drawdown (5 yr) | (28.70%) | (24.20%) |
| Growth of $1,000 over 5 years (total return) | $1,356 | $1,494 |
What's inside
Vanguard Small-Cap Value ETF holds 838 stocks, with Financial Services (18%), Industrials (17.9%), and Consumer Cyclical (12.5%) as its top sectors. Its largest positions include Flex (FLEX +3.40%) at 0.76%, Jabil (JBL +1.54%) at 0.77%, and NRG Energy (NRG -1.75%) at 0.75%. Launched in 2004, the fund has paid $4.14 per share over the trailing 12 months and manages $65.5 billion in assets under management (AUM).
In contrast, State Street SPDR S&P 600 Small Cap Value ETF tracks the S&P SmallCap 600 Value Index with 458 holdings. Its top sectors are Financial Services (19.5%), Consumer Cyclical (15.4%), and Technology (13.4%). Leading positions include Molina Healthcare (MOH +4.80%) at 1.04%, Enphase Energy (ENPH +1.98%) at 1.04%, and Eastman Chemical (EMN +1.28%) at 1.01%. Launched in 2000, it has a trailing-12-month dividend of $1.90 per share and $4.8 billion in AUM.
Which fund is the better buy?
The State Street SPDR S&P 600 Small Cap Value ETF has had a great recent 12 months, returning more than 39% to investors, besting the small-cap category by three percentage points. The Vanguard Small-Cap Value ETF has left a fair bit of returns on the table, relative to the category, with 28% returns over the past 12 months.
Yet small caps can and often do go out of favor in the market for long periods of time. Over the long-run Vanguard’s fund beats the State Street offering. Over the past three years, VBR has returned 16.5%, compared to 14.8% for SPLV and a category return of 15.3%. Over five years, VBR wins again, with returns of 7.8% to SLYV’s 6.5%. Over 10 years through March 31, the Vanguard fund posted a 10.1% return compared to 9.4% for the State Street contender.
In short, both funds offer strong performance and excellent exposure to the small-cap stock category. Given the historical trend of small caps to go out of favor for longer periods of time, the lower-cost Vanguard Small-Cap Value ETF is the choice here.
For more guidance on ETF investing, check out the full guide at this link.
