Two major exchange-traded funds targeting U.S. small-cap stocks present investors with distinct choices based on recent data. The Vanguard Small-Cap ETF (VB) and the State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) both offer low-cost, index-based access to this segment of the market.
As of January 9, 2026, VB posted a one-year total return of 14.1%, compared to SPSM's 11.6%. VB holds over 1,300 stocks, more than twice the number held by SPSM, which tracks a narrower universe of about 600 companies.
On cost, SPSM maintains an advantage with an expense ratio of 0.03%, while VB charges 0.05%. SPSM also offers a marginally higher dividend yield. Both funds show similar risk profiles, with five-year maximum drawdowns around -28% and betas slightly above 1.2 relative to the S&P 500.
VB's portfolio, tracking the CRSP US Small Cap Index, tilts toward industrials at 19% and technology at 17%. Its top holdings include Insmed (NASDAQ:INSM), Comfort Systems USA (NYSE:FIX), and SoFi Technologies (NASDAQ:SOFI), each comprising less than 1% of assets. The fund has over $163 billion in assets under management after 22 years on the market.
SPSM follows the S&P SmallCap 600, with a focus on financial services at 18%, industrials at 16%, and technology at 15%. Its largest positions are Arrowhead Pharmaceuticals (NASDAQ:ARWR), LKQ Corp (NASDAQ:LKQ), and Armstrong World Industries (NYSE:AWI), all below 0.6% of assets. The fund manages approximately $13 billion.
Neither ETF employs leverage, hedging, or thematic screens. Over a five-year period, a $1,000 investment in VB would have grown to $1,334, while the same investment in SPSM would have reached $1,290.