Vanguard Small-Cap ETF vs JPMorgan BetaBuilders Compared
Key Points
Vanguard Morningstar Small-Cap ETF provides a lower expense ratio and significantly higher assets under management (AUM) than JPMorgan BetaBuilders U.S. Small Cap Equity ETF.
JPMorgan BetaBuilders U.S. Small Cap Equity ETF maintains a more concentrated portfolio of 847 holdings compared to 1,357 for the Vanguard fund.
The Vanguard Morningstar Small-Cap ETF has exhibited lower historical volatility relative to the broader market as indicated by its 1.07 beta.
- Motley Fool Issues Rare "Total Conviction" Buy Alert ›
Investors evaluating JPMorgan BetaBuilders U.S. Small Cap Equity ETF (NYSEMKT:BBSC) and Vanguard Morningstar Small-Cap ETF (NYSEMKT:VB) may weigh the lower costs and higher liquidity of the Vanguard fund against the J.P. Morgan fund's slightly higher recent total returns.
Broad small-cap exposure can serve as a powerful diversifier in a long-term portfolio, often moving independently of larger equity peers. These two ETFs provide access to smaller U.S. companies but differ in their management costs and portfolio breadth. Understanding these nuances is essential for investors choosing between these two passive strategies.
Snapshot (cost & size)
| Metric | BBSC | VB |
|---|---|---|
| Issuer | J.P. Morgan | Vanguard |
| Share price (as of 10/23/26) | $84.87 | $287.22 |
| Expense ratio | 0.09% | 0.03% |
| 1-yr return (as of 10/23/26) | 13.8% | 13.2% |
| Dividend yield | 1.1% | 1.3% |
| Beta | 1.28 | 1.11 |
| AUM | $740 million | $175.8 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Vanguard Morningstar Small-Cap ETF is the more affordable option with a 0.03% expense ratio, while JPMorgan BetaBuilders U.S. Small Cap Equity ETF charges 0.09%. This cost gap can impact long-term compounding. Additionally, the Vanguard fund offers a higher payout with a 1.3% dividend yield.
Performance & risk comparison
| Metric | BBSC | VB |
|---|---|---|
| Max drawdown (5 yr) | (31%) | (28.2%) |
| Growth of $1,000 over 5 years (total return) | $1,138 | $1,132 |
What's inside
Vanguard Morningstar Small-Cap ETF targets a wide array of small companies, currently holding 1,357 securities to provide broad market coverage. Its portfolio tilts toward industrials at 20%, technology at 16%, and healthcare at 14%. Top holdings include Natera at 0.72% and Twilio at 0.57%. It was launched in 2004. Vanguard Morningstar Small-Cap ETF has paid $3.70 per share over the trailing 12 months, which on its recent ~$287.2 share price works out to a 1.3% yield.
JPMorgan BetaBuilders U.S. Small Cap Equity ETF manages a more concentrated list of 847 holdings, focusing on firms between the 95th and 99th percentiles of market capitalization. It allocates 17.6% to technology, 16.9% to healthcare, and 16.8% to financial services. Its largest positions include Semtech at 0.55% and Jfrog at 0.42%. It was launched in 2020. JPMorgan BetaBuilders U.S. Small Cap Equity ETF has paid $0.9 per share over the trailing 12 months, which on its recent ~$84.9 share price works out to a 1.1% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
There are a number of benefits to adding small-cap companies to your portfolio. These companies have high upside potential, as they are still early in their growth stories and may be poised to either take off or be acquired by a larger company. They can also help diversify a portfolio away from the market's leaders and leading market sectors, and they often trade at attractive valuations.
Both of these small-cap-focused ETFs look like solid contenders for investors looking to gain exposure to some of the market's smallest companies. With more than 1,000 holdings, the Vanguard fund may appeal to investors who are looking for even broader exposure and a heavier focus on industrials. Investors looking for a more concentrated play on the smallest companies on the market may be more drawn to the J.P. Morgan fund, which has a heavier focus on financial stocks, though it does charge a slightly higher expense ratio, which could eat into your returns long-term.
Should you buy stock in Vanguard Morningstar Small-Cap ETF right now?
Before you buy stock in Vanguard Morningstar 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 Morningstar 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 $337,166!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,339,143!*
Now, it’s worth noting Stock Advisor’s total average return is 904% — a market-crushing outperformance compared to 213% 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 October 28, 2026.
Sarah Sidlow has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Natera and Twilio. The Motley Fool recommends JFrog. The Motley Fool has a disclosure policy.
Recommended Articles
