VBR vs IJJ: Vanguard's small-cap value ETF charges 0.05% fees and yields 1.7%, while iShares' mid-cap version charges 0.18% and yields 1.5%. Tapestry and TD Synnex are top holdings.
The Vanguard Morningstar Small-Cap Value ETF (VBR) and iShares S&P Mid-Cap 400 Value ETF (IJJ) both target undervalued U.S. stocks – but at different size tiers. VBR holds 841 small-cap names with an expense ratio of 0.05%. IJJ holds 303 mid-cap names at 0.18%. VBR's yield is 1.7%, slightly above IJJ's 1.5%.
The Vanguard fund led on one-year and five-year total returns as of the latest data. Its largest holdings by weight are Jabil (JBL) at 0.87%, NRG Energy (NRG) at 0.66%, and Tapestry (TPR) at 0.63%. TPR carries an Alpha Score of 49/100, rated Mixed by the AlphaScala model.
The iShares fund tilts toward Financial Services, which makes up 22% of its portfolio versus VBR's 17%. Top positions include U.S. Foods (USFD) at 1.38%, Reliance Steel & Aluminum (RS) at 1.23%, and TD Synnex (SNX) at 1.08%. SNX has an Alpha Score of 73/100, rated Moderate.
VBR's 841-stock portfolio gives it broader diversification than IJJ's 303 names, which can absorb sector-specific shocks more easily. The fund also commands a much larger asset base, meaning tighter bid-ask spreads for traders. The trade-off is volatility: small caps swing wider than mid caps, and VBR's max drawdown reflects that.
For an investor weighing the two, the expense gap is the most concrete differentiator. VBR costs $5 per $10,000 invested annually versus IJJ's $18. On a $100,000 position held five years, that gap compounds to roughly $700 in fees alone, assuming no growth.
Vanguard launched VBR in 2004. iShares launched IJJ in 2000. Both are seasoned structures with audited track records through multiple cycles. Neither fund has experienced a liquidity event that disrupted its ability to track its index.
The structural question for a buyer is whether the small-cap volatility premium is worth the lower cost and higher return potential, or whether the mid-cap stability of IJJ better matches their portfolio risk budget. That decision sits with the individual investor's time horizon and drawdown tolerance.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.