VB vs. IJR: Vanguard Small Cap ETF Delivers Higher Returns With a Lower Dividend Yield

Cost & Size Comparison - Vanguard Small-Cap ETF (VB) has a lower expense ratio of 0.05% compared to iShares Core SP Small-Cap ETF (IJR) at 0.06% [4][5] - As of January 9, 2026, VB has a one-year return of 14.1%, while IJR has a return of 11.8% [4] - VB has an Assets Under Management (AUM) of $72.7 billion, whereas IJR has a significantly larger AUM of $92.5 billion [4] Performance & Risk Analysis - Over the past five years, the maximum drawdown for IJR is -28.02%, while VB's is slightly higher at -28.16% [6] - An investment of $1,000 would have grown to $1,334 in VB compared to $1,288 in IJR over the same five-year period [6] Portfolio Composition - VB tracks a broad CRSP U.S. small-cap index with 1,357 stocks, focusing on industrials (19%) and technology (17%) sectors [7] - IJR has a narrower focus with 632 holdings, emphasizing financial services (18%) and industrials (16%) [8] - Both ETFs maintain broad diversification, avoiding specialized quirks in their portfolios [8] Summary of Findings - VB outperforms IJR in one-year and five-year total returns, while also holding more than twice as many stocks [9] - Both funds are characterized by high diversification and low costs, with nearly identical dividend yields and risk profiles [9]