VB vs. SPSM Small-Cap Showdown: Maximum Reach or Strategic Focus?

Core Insights - The comparison between State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) and Vanguard Small-Cap ETF (VB) highlights that while both target U.S. small-cap stocks, VB has a broader market coverage, more holdings, and higher one-year returns, whereas SPSM is noted for its lower expense ratio [2][10]. Cost and Size - SPSM has a one-year return of 11.6% compared to VB's 14.1% as of January 9, 2026 [4] - SPSM features a lower expense ratio of 0.03%, while VB charges 0.05% [5] Performance and Risk Comparison - Over five years, SPSM experienced a maximum drawdown of -27.94%, while VB had a slightly higher drawdown of -28.16% [6] - An investment of $1,000 would have grown to $1,290 with SPSM and $1,334 with VB over the same period [6] Portfolio Composition - VB tracks a broad small-cap index with 1,357 stocks, primarily in industrials (19%), technology (17%), and healthcare (13%), with top positions including Insmed, Comfort Systems USA, and SoFi Technologies [7] - SPSM holds 607 companies, focusing on financial services (18%), industrials (16%), and technology (15%), with major positions in Arrowhead Pharmaceuticals, LKQ Corp, and Armstrong World Industries [8] Summary of Holdings - VB holds more than twice the number of stocks as SPSM and aims to replicate its index fully, while SPSM's narrower focus may lead to differences in risk and sector allocation [10]