IJT Offers Higher Yield While VBK Is More Affordable

Core Insights - The Vanguard Small-Cap Growth ETF (VBK) and iShares S&P Small-Cap 600 Growth ETF (IJT) target U.S. small-cap growth stocks but differ in fees, sector exposure, and risk metrics [1][2] Cost and Size Comparison - VBK has a lower expense ratio of 0.05% compared to IJT's 0.18% - VBK's one-year return is 23.7%, while IJT's is 19.4% - IJT offers a higher dividend yield of 0.88% compared to VBK's 0.53% - VBK has a higher beta of 1.38, indicating greater price volatility relative to the S&P 500, while IJT has a beta of 1.17 - Assets Under Management (AUM) for VBK is $40.0 billion, significantly larger than IJT's $6.4 billion [3][4] Performance and Risk Comparison - VBK experienced a maximum drawdown of -38.4% over five years, while IJT's drawdown was -29.2% - The growth of a $1,000 investment over five years is $1,098 for VBK and $1,119 for IJT [5] Sector Exposure - IJT includes 356 U.S. small-cap growth stocks, with sector allocations of 21% industrials, 18% technology, 15% healthcare, and 14% financials - VBK holds 551 securities, with a heavier tilt towards industrials at 23%, followed by technology at 21% and healthcare at 17% [6][7] Investment Implications - Both funds provide low-cost exposure to small-cap stocks, which are seen as overdue for a strong bull run after underperforming the market in recent years - The Russell 2000 index has reached new highs, suggesting a potential shift from large-cap stocks to small-cap stocks for higher upside [8]