Which Small-Cap Value ETF Is the Better Buy: iShares' IWN or State Street's SLYV?
Key Points
State Street SPDR S&P 600 Small Cap Value ETF features a lower expense ratio and higher trailing dividend yield than the iShares alternative.
iShares Russell 2000 Value ETF manages $14.4 billion in assets under management, making it significantly larger than the State Street fund.
The iShares Russell 2000 Value ETF outperformed the State Street SPDR S&P 600 Small Cap Value ETF over the last 12 months.
- 10 stocks we like better than iShares Trust - iShares Russell 2000 Value ETF ›
iShares Russell 2000 Value ETF (NYSEMKT:IWN) and State Street SPDR S&P 600 Small Cap Value ETF (NYSEMKT:SLYV) both provide exposure to small-cap value stocks, but they differ in cost, index construction, and historical performance.
Investors seeking exposure to the small-cap segment of the market often choose between these two popular funds. While both IWN and SLYV look for undervalued smaller companies, they follow different indexes, leading to variations in sector concentrations and risk-adjusted returns over time.
Snapshot (cost & size)
| Metric | SLYV | IWN |
|---|---|---|
| Issuer | SPDR | iShares |
| Share price | $108.06 (as of 2026-07-02) | $221.33 (as of 2026-07-02) |
| Expense ratio | 0.15% | 0.24% |
| 1-yr return (as of July 2, 2026) | 33.1% | 37.4% |
| Dividend yield | 1.8% | 1.4% |
| Beta | 0.99 | 1.01 |
| AUM | $4.9B | $14.4B |
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.
State Street SPDR S&P 600 Small Cap Value ETF is the more affordable option with a 0.15% expense ratio compared to 0.24% for the iShares fund. It also currently offers a higher payout, with a 1.8% trailing dividend yield.
Performance & risk comparison
| Metric | SLYV | IWN |
|---|---|---|
| Max drawdown (5 yr) | (28.7%) | (26.7%) |
| Growth of $1,000 over 5 years (total return) | $1,405 | $1,472 |
What's inside
The iShares Russell 2000 Value ETF focuses on Financial Services at 24%, Industrials at 12%, and Technology at 12%. Its top positions include Viasat (NASDAQ:VSAT) at 0.68%, Cytokinetics (NASDAQ:CYTK) at 0.66%, and UMB Financial (NASDAQ:UMBF) at 0.63%. This fund was launched in 2000. It has paid $3.19 per share over the trailing 12 months, which on its recent ~$221.33 share price works out to a 1.4% yield.
The State Street SPDR S&P 600 Small Cap Value ETF allocates 19% to Financial Services, 15% to Consumer Cyclical, and 13% to Technology. Top holdings among its 462 positions include Molina Healthcare (NYSE:MOH) at 1.31%, Match Group (NASDAQ:MTCH) at 0.96%, and Eastman Chemical (NYSE:EMN) at 0.82%. This fund was launched in 2000. It has paid $1.98 per share over the trailing 12 months, which on its recent ~$108.06 share price works out to a 1.8% yield.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Small-cap value investing has a long history of rewarding patient investors, but not all small-cap value funds are built the same way. IWN and SLYV target the same corner of the market and have delivered strong recent returns, but their index construction reveals a key difference in the importance of profitability.
IWN tracks the Russell 2000 Value Index, which casts a wide net across more than 1,400 small-cap stocks without requiring profitability. That breadth delivers exposure to the full small-cap value universe, including companies that are losing money. SLYV follows the S&P SmallCap 600 Value Index, which requires companies to demonstrate profitability before admission. That quality filter has historically helped the S&P 600 avoid some of the worst small-cap blowups.
IWN has delivered stronger recent returns despite charging significantly more than SLYV. But past outperformance does not guarantee the same result going forward. SLYV's lower cost and quality screen make it the more efficient long-term choice for most investors. IWN appeals to those who want the broadest possible small-cap value exposure and are comfortable paying more for it.
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cytokinetics. The Motley Fool recommends Match Group. The Motley Fool has a disclosure policy.
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