Small Cap Value ETFs: IWN Boasts Greater Small Cap Exposure But SLYV Has a Higher Yield
Key Points
IWN holds over three times as many stocks as SLYV, with heavier exposure to real estate and financials
IWN has delivered a higher 1-year return and shallower drawdown over five years, but charges a higher expense ratio
Both funds are highly liquid, but IWN’s larger assets under management may appeal to investors seeking scale
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The State Street SPDR S&P 600 Small Cap Value ETF (NYSEMKT:SLYV) and the iShares Russell 2000 Value ETF (NYSEMKT:IWN) both target U.S. small-cap value stocks, but IWN charges a higher fee, holds many more companies, and has outperformed on recent total return.
Both SLYV and IWN aim to capture the value segment of the U.S. small-cap market, but they differ in index construction and depth of coverage. This comparison examines their costs, risks, recent performance, sector tilts, and portfolio makeup to help investors decide which approach may better fit their goals.
Snapshot (cost & size)
| Metric | SLYV | IWN |
|---|---|---|
| Issuer | SPDR | IShares |
| Expense ratio | 0.15% | 0.24% |
| 1-yr return (as of 2026-03-11) | 19.4% | 25.9% |
| Dividend yield | 1.9% | 1.6% |
| Beta | 1.02 | 1.03 |
| AUM | $4.1 billion | $12.5 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.
SLYV looks more affordable in terms of fees, charging 0.15% compared to IWN’s 0.24%, while SLYV also offers a slightly higher dividend yield. The difference in expenses may add up over time for cost-conscious investors.
Performance & Risk Comparison
| Metric | SLYV | IWN |
|---|---|---|
| Max drawdown (5 y) | -28.68% | -26.71% |
| Growth of $1,000 over 5 years | $1,074 | $1,124 |
What's Inside
IWN tracks a broad small-cap value universe, holding 1,402 stocks and spanning 25.6 years of history. Its largest sector weights are financial services at 24%, followed by industrials and real estate, t 11%. Each Top holding, such as Echostar Corp Class A(NASDAQ:SATS), Hecla Mining(NYSE:HL), and Ttm Technologies Inc, accounts for less than 1.1% of assets, reflecting wide diversification. No notable structural quirks are present.
SLYV, by contrast, holds 460 companies focused on financial services, consumer cyclicals, and industrials, with more concentrated top positions like Eastman Chemical Co(NYSE:EMN), Lkq Corp(NASDAQ:LKQ), and Jackson Financial Inc A(NYSE:JXN), all at roughly one percent. This narrower approach may create subtle differences in sector risk and performance patterns.
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What this means for investors
Both State Street SPDR S&P 600 Small Cap Value ETF (SLYV) and iShares Russell 2000 Value ETF (IWN) offer exposure to U.S. small-cap value stocks. Yet, there are differences between these two ETFs.
IWN holds nearly three times as many stock positions (1,402 vs. 460) as SLYV, offering greater diversification. In addition, IWN has posted a higher return over the last year (25.9% vs. 19.4%). Finally, IWN offers greater liquidity with $12.5 billion in AUM versus $4.1 billion for SLYV.
Yet, SLYV tops IWN on some other key ETF metrics. SLYV, for example, has a lower expense ratio (0.15% vs. 0.24%). It also boasts a higher dividend yield of 1.9% compared to IWN’s 1.6%.
In summary, IWN’s diversification, higher recent returns, and larger assets under management may appeal to investors seeking scale.
On the other hand, SLYV’s lower expense ratio and slightly higher yield could attract those focused on cost efficiency.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool recommends LKQ. The Motley Fool has a disclosure policy.
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