VBR Offers Greater Size While ISCV Pays Higher Yield

Core Insights - The Vanguard Small-Cap Value ETF (VBR) and iShares Morningstar Small-Cap Value ETF (ISCV) both focus on U.S. small-cap value stocks but differ in size, liquidity, yield, and performance metrics [5][7]. Fund Characteristics - VBR holds 831 stocks with a sector allocation of 21.7% in Industrials, 19.8% in Financial Services, and 14.2% in Consumer Discretionary, while ISCV targets over 1,100 stocks with 24.5% in Financial Services, 13.5% in Consumer Discretionary, and 13% in Industrials [1][2]. - VBR has total assets under management (AUM) of $59.6 billion, making it significantly larger and more liquid than ISCV, which has a much smaller AUM [5][7]. Cost and Performance - ISCV has a lower expense ratio of 0.06% compared to VBR's 0.07%, making it slightly more affordable [3]. - VBR's larger size contributes to a lower beta, indicating less volatility compared to market benchmarks, and it has shown slightly better performance over the last five years [7]. Investment Strategy - Both funds aim to provide broad exposure to small-cap companies with value characteristics, allowing investors to diversify their portfolios with a single investment [6][4]. - The focus on small-cap stocks is intended to capture potential upside from younger, smaller companies that may be undervalued by the market [6][7].