Vanguard vs. JPMorgan: Which is the Better Small-Cap ETF?
Key Points
Vanguard Small-Cap ETF offers a lower expense ratio and a higher trailing-12-month dividend yield than JPMorgan BetaBuilders U.S. Small Cap Equity ETF.
While JPMorgan BetaBuilders U.S. Small Cap Equity ETF has delivered a higher 1-year total return, Vanguard Small-Cap ETF has provided better risk-adjusted performance with a lower maximum drawdown.
Vanguard Small-Cap ETF maintains a more diversified portfolio with over 1,300 holdings compared to the 782 positions in JPMorgan BetaBuilders U.S. Small Cap Equity ETF.
- 10 stocks we like better than Vanguard Index Funds - Vanguard Small-Cap ETF ›
Comparing JPMorgan BetaBuilders U.S. Small Cap Equity ETF (CBOE:BBSC) and Vanguard Small-Cap ETF (NYSEMKT:VB) reveals distinct choices in cost and diversification for investors seeking exposure to smaller American companies.
Both funds provide a path into the U.S. small-cap market, yet they differ in their construction and scale. BBSC targets the 95th to 99th percentiles of market capitalization, while VB tracks a broad index to capture a diversified group of small companies.
Snapshot (cost & size)
| Metric | BBSC | VB |
|---|---|---|
| Issuer | J.P. Morgan | Vanguard |
| Expense ratio | 0.09% | 0.03% |
| 1-yr return (as of June 3, 2026) | 36.0% | 28.8% |
| Dividend yield | 1.0% | 1.2% |
| Beta | 1.14 | 1.05 |
| AUM | $692.7 million | $177.4 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.
VB is significantly more affordable with an expense ratio of 0.03%, compared to 0.09% for BBSC. Additionally, the Vanguard fund provides a higher payout for income-seeking investors with its 1.2% trailing-12-month distribution yield.
Performance & risk comparison
| Metric | BBSC | VB |
|---|---|---|
| Max drawdown (5 yr) | (30.9%) | (28.2%) |
| Growth of $1,000 over 5 years (total return) | $1,379 | $1,410 |
What's inside
The Vanguard Small-Cap ETF (NYSEMKT:VB) offers broad exposure through 1,357 holdings, with its largest sector weights in industrials at 21%, technology at 17%, and financial services at 13%. Its largest positions include EMCOR Group Inc (NYSE:EME) at 0.51%, Bloom Energy Corp (NYSE:BE) at 0.48%, and Ciena Corp (NYSE:CIEN) at 0.48%. This fund was launched in 2004 and has a trailing-12-month dividend of $3.50 per share.
The JPMorgan BetaBuilders U.S. Small Cap Equity ETF (NYSEMKT:BBSC) is more concentrated with 782 holdings and focuses on technology at 18%, financial services at 17%, and healthcare at 16%. Its top holdings include TTM Technologies Inc (NASDAQ:TTMI) at 0.87%, Semtech Corp (NASDAQ:SMTC) at 0.79%, and Sitime Corp (NASDAQ:SITM) at 0.77%. Launched in 2020, BBSC has a trailing-12-month dividend of $0.89 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
As investors are steadily rotating out of large-cap stocks into less expensive investments, they are increasingly finding good values with small-cap stocks. This year, the Russell 2000 small-cap index has beaten the S&P 500 with a return of about 17% year-to-date and 40% over the past 12 months.
While both of these ETFs focus on small-caps, they look at slightly different areas of the universe The BBSC ETF includes small-cap between the 95th and 99th percentile of stocks, so it excludes the microcaps. Thus, it holds less stocks, about 728. The Vanguard ETF invests in a broader swath of the small-cap universe, holding about 1,300 stocks.
The JPMorgan ETF has been a slightly better performer YTD and beats the Vanguard ETF over the past 12 months. But the Vanguard ETF has better five-year annualized returns and has a lower expense ratio.
Both are solid options if you are looking for a small-cap ETF, but it is really hard to beat VBʻs miniscule 0.03% expense ratio and better longer-term returns.
Should you buy stock in Vanguard Index Funds - Vanguard Small-Cap ETF right now?
Before you buy stock in Vanguard Index Funds - Vanguard Small-Cap ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Index Funds - Vanguard Small-Cap ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,632!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,316,532!*
Now, it’s worth noting Stock Advisor’s total average return is 959% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 4, 2026.
Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy, Ciena, EMCOR Group, and SiTime. The Motley Fool has a disclosure policy.
Recommended Articles
