2 hours ago
1
Sara Appino, The Motley Fool
Sun, January 18, 2026 astatine 9:15 AM CST 5 min read
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VB holds implicit doubly arsenic galore stocks arsenic SPSM and tracks a broader small-cap universe.
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VB delivered stronger full returns implicit the past year, but SPSM is much affordable for cost-conscious investors.
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Both ETFs tilt toward industrials and technology, but their apical holdings disagree and assemblage weights are not identical.
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These 10 stocks could mint the adjacent question of millionaires ›
State Street SPDR Portfolio S&P 600 Small Cap ETF (NYSEMKT:SPSM) and Vanguard Small-Cap ETF (NYSEMKT:VB) some people U.S. small-cap stocks, but VB covers a broader portion of the market, holds much companies, and posted higher one-year returns, portion SPSM stands retired for its little disbursal ratio.
Both SPSM and VB connection low-cost, index-based entree to U.S. small-cap equities, appealing to investors seeking diversified vulnerability beyond ample caps. This examination looks astatine costs, returns, portfolio makeup, and trading practicality to assistance investors determine which ETF champion fits a small-cap allocation.
| 1-yr instrumentality (as of 2026-01-09) | 11.6% | 14.1% |
| Beta | 1.23 | 1.27 |
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.
SPSM is much affordable with a 0.03% disbursal ratio, portion VB charges a somewhat higher 0.05%. SPSM besides offers a marginally higher dividend yield, which whitethorn entreaty to those seeking a spot much income from their small-cap exposure.
| Max drawdown (5 y) | -27.94% | -28.16% |
| Growth of $1,000 implicit 5 years | $1,290 | $1,334 |
VB tracks a wide small-cap index, holding 1,357 stocks with a tilt toward industrials (19%), exertion (17%), and healthcare (13%). Its apical positions arsenic of Jan. 2026 are Insmed (NASDAQ:INSM), Comfort Systems USA (NYSE:FIX), and SoFi Technologies (NASDAQ:SOFI), each making up little than 1% of assets. With 22 years connected the marketplace and implicit $163 cardinal successful assets nether absorption (AUM), VB offers standard and breadth, aiming to afloat replicate its index.
SPSM, meanwhile, holds 607 companies and emphasizes fiscal services (18%), industrials (16%), and exertion (15%). Its largest positions are Arrowhead Pharmaceuticals (NASDAQ:ARWR), LKQ Corp (NASDAQ:LKQ), and Armstrong World Industries (NYSE:AWI), each beneath 0.6% of assets. Both ETFs debar leverage, hedging, oregon thematic screens, but SPSM’s narrower absorption connected the S&P SmallCap 600 whitethorn effect successful subtle differences successful hazard and assemblage mix.
For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.
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