VBR vs. SLYV: Which Small-Cap Value ETF Is the Better Buy for Investors Right Now?
Key Points
VBR offers a meaningfully lower expense ratio than SLYV, giving it an advantage on fees.
SLYV delivered a higher one-year total return, though it experienced a deeper maximum drawdown over the last five years.
VBR holds nearly twice as many positions and maintains a much larger total assets under management (AUM) than SLYV.
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Both the Vanguard Small-Cap Value ETF (NYSEMKT:VBR) and the State Street SPDR S&P 600 Small Cap Value ETF (NYSEMKT:SLYV)target the "value" slice of the small-cap market, holding companies that trade at low price multiples relative to fundamental metrics.
However, they track different benchmark indexes, which creates meaningful differences in concentration, risk-adjusted returns, and historical performance. This comparison examines how each fund manages the unique risks of small-cap investing while seeking long-term growth.
Snapshot (cost & size)
| Metric | SLYV | VBR |
|---|---|---|
| Issuer | State Street | Vanguard |
| Expense ratio | 0.15% | 0.05% |
| 1-yr return (as of June 9, 2026) | 36.36% | 24.86% |
| Dividend yield | 1.82% | 1.76% |
| Beta (5Y monthly) | 1.12 | 1.01 |
| Assets under management (AUM) | $4.7 billion | $65.5 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
VBR provides a notable cost advantage with a lower expense ratio than SLYV. For income-seeking investors, the payout levels are very similar, but SLYV offers a slight edge with a higher trailing-12-month distribution yield.
Performance & risk comparison
| Metric | SLYV | VBR |
|---|---|---|
| Max drawdown (5 yr) | -28.7% | -24.2% |
| Growth of $1,000 over 5 years (total return) | $1,292 | $1,442 |
What's inside
VBR provides broad diversification with 839 positions. Its largest sector allocations include financial services and industrials, each at around 18%, followed by consumer cyclical at around 13%. Its largest positions include Jabil, Flex, and NRG Energy, each of which makes up less than 1% of the overall portfolio.
In contrast, SLYV is more concentrated with 460 holdings. It leans more heavily into financial services at 20%, followed by consumer cyclical at 15%, and industrials at 13%. Its top holdings include Enphase Energy, Molina Healthcare, and Eastman Chemical, each accounting for roughly 1% of total assets.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Small-cap value stocks can add meaningful diversification to a core portfolio, capturing an often overlooked sector of the market.
VBR is the broader of the two, holding almost twice as many stocks. It’s also more affordable on fees, offering a 0.05% expense ratio compared to SLYV’s 0.15%. In other words, investors can expect to pay $5 per year in fees for every $10,000 invested in VBR, compared to $15 per $10,000 invested in SLYV. For those with large account balances, that can add up substantially over time.
VBR has also outperformed SLYV over the past five years, but SLYV has the edge on 12-month total returns.
SLYV’s slightly higher recent performance comes with marginally higher volatility, however, as this ETF has experienced a deeper max drawdown and a higher beta — suggesting more severe price fluctuations. While the difference is slight, it’s something for more risk-averse investors to consider.
Both ETFs offer plenty of advantages to investors. VBR has the edge on diversification and fees, while SLYV offers a higher dividend yield and stronger one-year total returns. The right choice for you will come down to your individual goals and priorities.
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Katie Brockman has positions in Vanguard Small-Cap Value ETF. The Motley Fool has positions in and recommends NRG Energy. The Motley Fool recommends Enphase Energy and Flex. The Motley Fool has a disclosure policy.
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