Core Viewpoint - The Schwab U.S. Small-Cap ETF (SCHA) offers lower expense ratios and broader diversification compared to the iShares Core S&P Small-Cap ETF (IJR), while IJR provides a slightly higher yield and less severe drawdowns in recent years [2][9]. Cost & Size Comparison - SCHA has an expense ratio of 0.04%, while IJR has a slightly higher expense ratio of 0.06% [4][5]. - As of January 12, 2026, SCHA reported a one-year return of 19.9%, compared to IJR's 13.5% [4]. - IJR has a larger asset under management (AUM) of $88.0 billion, while SCHA has $19.3 billion [4]. Performance & Risk Analysis - Over the past five years, IJR experienced a maximum drawdown of 28.02%, while SCHA had a drawdown of 30.79% [6]. - A $1,000 investment in IJR would have grown to $1,373 over five years, compared to $1,351 for SCHA [6]. Portfolio Composition - SCHA tracks a broad small-cap index with 1,742 stocks, primarily in financial services (18%), industrials (17%), and technology (15%) [7]. - IJR holds a more concentrated portfolio of 632 companies, with similar sector weights in financial services (18%), industrials (17%), and technology (14%) [8]. Investment Implications - Both SCHA and IJR are viable options for investors looking for small-cap market exposure, having produced similar total returns over one, five, and ten years [10]. - Currently, both ETFs trade at a discount, with earnings multiples of 18 times, compared to the S&P 500's 28 times [10].