Vanguard Small-Cap Value ETF

VBR

Market cap $33.7B

As geopolitical risks rise and volatility lingers, value investing stands out as an attractive strategy. Look at ETFs to simplify the implementation of the strategy.

VBR is much larger and more liquid than ISCV, but comes with a slightly higher expense ratio. ISCV holds more stocks, while VBR has delivered stronger five-year growth.

Vanguard Small-Cap Value ETF charges a lower expense ratio and manages a much larger asset base than State Street SPDR S&P 600 Small Cap Value ETF VBR has delivered stronger 1-year and 5-year total returns with slightly less historical drawdown Both funds tilt toward industrials and financials, but VBR holds considerably more stocks These 10 Stocks Could Mint the Next Wave of Millionaires ›

VBR carries a lower expense ratio and higher yield. IWN holds more stocks with a heavier tilt toward financials, while VBR leans industrial.

VBR charges a much lower expense ratio and holds a broader basket of small-cap value stocks. IJJ is much smaller in scale and has a tilt toward mid-cap financials.

VBR is far larger and more liquid than ISCV, but it carries a slightly higher expense ratio ISCV holds more stocks and leans more toward financials, while VBR tilts toward industrials. Both funds posted similar five-year drawdowns, but VBR delivered marginally higher five-year growth.

IWN has delivered a stronger one-year total return than VBR but trails over a five-year period. VBR charges a much lower expense ratio than IWN, which could appeal to cost-conscious investors.

Coming into 2025, amid a debate about concentration and lofty valuations in the largest of large-cap stocks, as well as concerns about macro uncertainty and economic conditions, we collectively called for diversification. That diversification, among other things, singled out the opportunity in small-caps.

Vanguard's mutual ownership structure enables the company to operate at cost, delivering industry-low expense ratios that compound into significant savings over time. International dividends, U.S. technology, and small-cap value offer three distinct return drivers that contribute to a well-rounded portfolio.

Looking for broad exposure to the Small Cap Value segment of the US equity market? You should consider the Vanguard Small-Cap Value ETF (VBR), a passively managed exchange traded fund launched on January 26, 2004.