Vanguard or iShares: Which Offers the Better Small-Cap ETF?

Core Insights - The Vanguard Small-Cap ETF (VB) and iShares Core S&P Small-Cap ETF (IJR) provide low-cost access to U.S. small-cap stocks, differing in sector allocations, number of holdings, and minor cost variations [1][2]. Cost & Size Comparison - VB has an expense ratio of 0.03%, while IJR's is 0.06% [3][4]. - As of March 11, 2026, VB's one-year return is 20.1%, compared to IJR's 18.9% [3]. - VB has a total asset under management (AUM) of $169.1 billion, significantly higher than IJR's $92.2 billion [3]. Performance & Risk Analysis - Over the past five years, VB experienced a maximum drawdown of -28.16%, slightly worse than IJR's -28.02% [5]. - A $1,000 investment in VB grew to $1,204 over five years, while the same investment in IJR grew to $1,083 [5]. Fund Composition - IJR tracks 647 U.S. small-cap stocks, with significant allocations in financial services (17%), industrials (16%), and consumer cyclicals (15%) [6]. - VB holds a broader range of 1,317 stocks, with a tilt towards industrials (20%), technology (17%), and financial services (13%) [7]. - The largest holdings in IJR include Solstice Advanced Materials Inc, Interdigital Inc, and CareTrust REIT, while VB's top positions are Sandisk Corp, Comfort Systems USA Inc, and Lumentum [6][7]. Investment Implications - VB tracks the CRSP US Small Cap Index, covering around 1,317 small-cap stocks, while IJR offers a more straightforward exposure to its segment [8].