iShares Core S&P Small-Cap ETF

IJR

Market cap $98.5B

For years, owning small-cap stocks felt like watching a neighbor's party through a window.

Small caps are having a better 2026 than most investors expected.

The S&P 500 is down on the year through late March, but surprisingly, small caps are not.

Small caps have been plagued by negative earnings growth for years. That has led to significant underperformance relative to the S&P 500.

IJR commands a much larger asset base than SPSM Both ETFs offer similar sector exposures and nearly identical risk profiles SPSM charges a lower expense ratio and has a marginally higher dividend yield

Vanguard Small-Cap ETF charges half the expense ratio of iShares Core S&P Small-Cap ETF, but both are extremely low-cost. IJR is slightly more concentrated and tilts more toward financials, while VB emphasizes industrial and technology stocks.

Small-cap ETFs aren't interchangeable. The index they track can make a huge difference in the type of portfolio you're buying.

For years, the S&P 500 has easily delivered the best combination of earnings growth and investor performance. Later this year, smaller companies are finally expected to deliver better earnings growth rates than large caps.

Schwab U.S. Small-Cap ETF charges a lower expense ratio, but iShares Core S&P Small-Cap ETF pays a slightly higher dividend yield. IJR holds fewer stocks and tilts a bit more toward financial services, while SCHA leans on technology.

Small caps are having a strong rebound this year thanks to improving earnings, attractive value, and lower rates. Given how long they've underperformed large caps, small caps could be setting up for an extended run.