SLYV wins on cost and yield, but IWN is winning the year
Key Points
iShares Russell 2000 Value ETF offers broader diversification with significantly more holdings than State Street SPDR S&P 600 Small Cap Value ETF
State Street SPDR S&P 600 Small Cap Value ETF maintains a lower expense ratio and higher dividend yield than its iShares peer
Both funds provide small-cap value exposure and have similar risk profiles, though the iShares fund has slightly outperformed over the last 12 months
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The iShares Russell 2000 Value ETF (NYSEMKT:IWN) offers broader small-cap exposure with over 1,300 holdings, while the State Street SPDR S&P 600 Small Cap Value ETF (NYSEMKT:SLYV) provides a more concentrated portfolio at a lower cost.
Both funds serve as vehicles for small-cap value exposure, a segment often prized for its long-term growth potential and diversification benefits. While IWN tracks a wider universe of stocks via the Russell 2000, SLYV follows a more selective index that includes specific profitability filters for its constituents.
Snapshot (cost & size)
| Metric | SLYV | IWN |
|---|---|---|
| Issuer | SPDR | iShares |
| Expense ratio | 0.15% | 0.24% |
| 1-yr return (as of May 1, 2026) | 35.27% | 38.92% |
| Dividend yield | 1.80% | 1.50% |
| Beta | 1.01 | 1.03 |
| AUM | $4.6 billion | $13.4 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 is the more affordable option with a 0.15% expense ratio, compared to 0.24% for the iShares fund. Additionally, SLYV offers a slightly higher distribution yield of 1.80% for investors who may prefer a higher payout.
Performance & risk comparison
| Metric | SLYV | IWN |
|---|---|---|
| Max drawdown (5 yr) | (28.70%) | (26.70%) |
| Growth of $1,000 over 5 years | $904.50 | $875.12 |
What's inside
The iShares Russell 2000 Value ETF (NYSEMKT:IWN) targets small-cap U.S. equities with value characteristics, providing a broad basket of 1,397 holdings. Its sector allocation is led by financial services at 24%, followed by industrials at 12%, and healthcare at 11%. Its largest positions include Echostar (NASDAQ:SATS) at 1.04%, Ttm Technologies (NASDAQ:TTMI) at 0.90%, and Coeur Mining (NYSE:CDE) at 0.57%. Launched in 2000, it has paid $3.09 per share over the trailing 12 months.
The State Street SPDR S&P 600 Small Cap Value ETF (NYSEMKT:SLYV) tracks the S&P SmallCap 600 Value Index, which includes a profitability screen that filters the starting universe. It holds 459 stocks, with a sector focus on financial services at 20%, consumer cyclical at 16%, and industrials at 13%. Top holdings include Eastman Chemical (NYSE:EMN) at 1.02%, Match Group (NASDAQ:MTCH) at 1.00%, and Lkq (NASDAQ:LKQ) at 0.95%. Also launched in 2000, it has paid $1.90 per share over the trailing 12 months.
What's this means
On paper, SLYV looks like the obvious pick. It's cheaper at 0.15% versus 0.24%, and it pays a higher distribution yield at 1.80% versus 1.50%. Two boxes checked before you even open the hood. Then you look at the trailing 12 months and IWN is up 38.92% against SLYV's 35.27% — a 3.65-point gap that swamps the expense and yield advantages combined. The twist is what's driving that. SLYV's index screens for profitable companies before they're eligible. IWN's doesn't — any small-cap value stock can get in, profits or not. In the past year, the speculative tail of unprofitable small-caps has run hard, and IWN caught more of it. Over longer stretches, that same screen has historically worked in SLYV's favor. So the choice isn't really cheap-versus-expensive. It's whether you want a quality floor or full exposure to whatever the small-cap value universe is doing right now. SLYV is the more disciplined pick. IWN is the one that rides the cycle — for better and for worse.
For more guidance on ETF investing, check out the full guide at this link.
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Seena Hassouna has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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