SLYV vs. IJJ: The Value Investor's Choice Between Small-Cap Upside and Mid-Cap Stability
Key Points
State Street SPDR S&P 600 Small Cap Value ETF focuses on smaller stocks while iShares S&P Mid-Cap 400 Value ETF targets the mid-cap market segment.
iShares S&P Mid-Cap 400 Value ETF has historically exhibited lower volatility and a shallower maximum drawdown over the past five years.
State Street SPDR S&P 600 Small Cap Value ETF offers a lower expense ratio and higher 1-year total returns.
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Investors choosing between State Street SPDR S&P 600 Small Cap Value ETF (NYSEMKT:SLYV) and iShares S&P Mid-Cap 400 Value ETF (NYSEMKT:IJJ) are primarily weighing exposure to small-cap volatility against more stable mid-cap value names.
Both funds target the value factor within the U.S. equity market, though they fish in different ponds. SLYV tracks the S&P SmallCap 600 Value Index, focusing on the smallest profitable companies, whereas IJJ moves up the market-cap ladder to capture established mid-sized firms that trade at attractive valuations.
Snapshot (cost & size)
| Metric | SLYV | IJJ |
|---|---|---|
| Issuer | SPDR | iShares |
| Expense ratio | 0.15% | 0.18% |
| 1-yr return (as of Apr. 27, 2026) | 43.40% | 26.50% |
| Dividend yield | 1.80% | 1.70% |
| Beta | 1.01 | 1.01 |
| AUM | $4.6 billion | $8.5 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.
The State Street fund offers a slightly lower entry cost with an expense ratio of 0.15%. While both funds generate income, SLYV provided a trailing-12-month dividend yield of 1.80%, marginally ahead of the 1.70% distributed by IJJ.
Performance & risk comparison
| Metric | SLYV | IJJ |
|---|---|---|
| Max drawdown (5 yr) | (28.70%) | (22.70%) |
| Growth of $1,000 over 5 years (total return) | $1,354 | $1,444 |
What's inside
iShares S&P Mid-Cap 400 Value ETF (NYSEMKT:IJJ) holds 303 stocks, with its largest positions including US Foods Holding Corp. (NYSE:USFD) at 1.23%, Reliance Steel & Aluminum (NYSE:RS) at 1.10%, and Alcoa Corp. (NYSE:AA) at 1.02%. The portfolio leans toward financial services at 22.00%, industrials at 18.00%, and consumer cyclical at 14.00%. It was launched in 2000 and has a trailing-12-month dividend of $2.34 per share.
In contrast, State Street SPDR S&P 600 Small Cap Value ETF (NYSEMKT:SLYV) manages a broader basket of 459 holdings. Its largest positions include Eastman Chemical Co. (NYSE:EMN) at 1.02%, Match Group Inc. (NASDAQ:MTCH) at 1.00%, and LKQ Corp. (NASDAQ:LKQ) at 0.95%. This fund, which was also launched in 2000, concentrates its 20.00% financial services, 16.00% consumer cyclical, and 13.00% industrials exposure in smaller companies. It paid $1.90 per share over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Small-cap and mid-cap stocks occupy distinct places in the market. Small caps, which are companies with market values typically below $2 billion, tend to be more volatile, more sensitive to economic cycles, and harder hit during downturns, but they also have more room to grow. Mid-caps have generally cleared the most precarious early stages of development and tend to offer a middle ground between the stability of large caps and the growth potential of small caps.
SLYV and IJJ both apply value screening to their respective universes, seeking companies that look cheap relative to earnings, book value, and sales. And both use S&P indexes that require profitability before admission. That shared quality filter matters: It weeds out the weakest companies in two market segments that can otherwise harbor significant risk.
The fee difference between the two is minimal, making the choice primarily about risk tolerance and where investors want to sit on the market cap spectrum. SLYV offers deeper value exposure with more volatility, while IJJ provides a smoother ride in a slightly more established tier of the market.
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool recommends LKQ and Match Group. The Motley Fool has a disclosure policy.
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