VB vs. IJR: Vanguard Small Cap ETF Delivers Higher Returns With a Lower Dividend Yield

1 hour ago 2

Jake Lerch, The Motley Fool

Sat, January 17, 2026 astatine 12:50 PM CST 5 min read

Vanguard Small-Cap ETF edges retired iShares Core SP Small-Cap ETF connected one-year and five-year full returns
VB holds much than doubly arsenic galore stocks, with a humble tilt toward industrials and technology
Both funds stay highly diversified and inexpensive, with near-identical yields and hazard profiles
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Vanguard Small-Cap ETF (NYSEMKT:VB) and iShares Core SP Small-Cap ETF (NYSEMKT:IJR) connection wide small-cap U.S. equity vulnerability with akin costs and risk, but VB features a wider portfolio and somewhat higher caller returns.

Both VB and IJR are designed for investors seeking low-cost, diversified entree to the U.S. small-cap banal market. This examination looks astatine however these 2 fashionable funds disagree successful cost, performance, diversification, and assemblage exposures, helping investors determine which whitethorn amended acceptable their small-cap allocation.

Metric

IJR

Issuer	IShares	Vanguard
Expense ratio	0.06%	0.05%
1-yr instrumentality (as of 2026-01-09)	11.8%	14.1%
Dividend yield	1.4%	1.3%
Beta	1.08	1.10
AUM	$92.5 billion	$72.7 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VB is marginally much affordable connected fees, with an disbursal ratio of 0.05% compared to IJR’s 0.06%. Yield is astir identical, with IJR offering a 1.4% payout and VB astatine 1.3%, truthful neither stands retired connected income.

Metric

IJR

Max drawdown (5 y)	-28.02%	-28.16%
Growth of $1,000 implicit 5 years	$1,288	$1,334

VB tracks a wide CRSP U.S. small-cap scale and presently holds 1,357 stocks, making it 1 of the astir diversified small-cap ETFs connected the market. The portfolio tilts toward industrials (19%) and exertion (17%), with healthcare astatine 13%. Its largest positions, specified arsenic Insmed Inc (NASDAQ:INSM), Comfort Systems USA Inc (NYSE:FIX), and SoFi Technologies Inc (NASDAQ:SOFI), each relationship for little than 1% of assets. With 22 years of past and nary leverage oregon ESG filters, VB aims for broad, low-turnover small-cap exposure.

IJR besides pursues U.S. small-cap stocks, but with a somewhat narrower focus—632 holdings and apical weights successful Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR), Lkq Corp (NASDAQ:LKQ), and Armstrong World Industries Inc (NYSE:AWI). Sector allocations are similar, though IJR leans much into fiscal services (18%) and industrials (16%), with exertion astatine 15%. Both funds support wide diversification and debar specialized quirks.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.