VBR vs. IJJ: Are Small-Cap or Mid-Cap Stocks the Better Choice for Value Investors?

Expense ratios, sector tilts, and portfolio breadth set these two value ETFs apart. See how their differences may impact your strategy.The Vanguard Small-Cap Value ETF (VBR +1.02%) and the iShares SP Mid-Cap 400 Value ETF (IJJ +0.81%) both aim to give investors diversified access to U.S. value stocks, but their strategies diverge in the size of companies they target. This comparison examines fees, returns, risk, portfolio construction, and other relevant factors to help investors decide which approach best aligns with their goals.Snapshot (cost & size)MetricVBRIJJIssuerVanguardiSharesExpense ratio0.05%0.18%1-yr return (as of Feb. 14, 2026)13.67%11.20%Dividend yield1.85%1.72%Beta (5Y monthly)1.111.12AUM$62 billion$8 billionBeta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.VBR is notably more affordable on fees with a lower expense ratio, and it also offers a marginally higher dividend yield. For cost-conscious investors, VBR’s lower fee may appeal, especially over longer holding periods.Performance & risk comparisonMetricVBRIJJMax drawdown (5 y)-24.19%-22.67%Growth of $1,000 over 5 years$1,464$1,497Over the past five years, both funds have experienced similar maximum drawdowns, with IJJ showing slightly less downside. IJJ’s growth of $1,000 edges ahead of VBR for the period, though both landed in the same general range for long-term investors.What's insideIJJ tracks mid-cap U.S. companies that exhibit value traits, holding 305 stocks. The portfolio leans heavily into financial services (making up 23% of assets), with significant allocations to industrials and consumer cyclicals. Its largest holdings include US Foods, Reliance, and Toll Brothers. Each represents around 1% of assets, reflecting a fairly even distribution across its constituents.VBR, in contrast, draws from a much broader universe of 845 small-cap value stocks, with the highest weights in financial services (19%), industrials (18%), and consumer cyclicals (13%). Its top names — NRG Energy, EMCOR Group, and Atmos Energy — each account for less than 0.75% of assets, underscoring its wide diversification and focus on smaller companies relative to IJJ.For more guidance on ETF investing, check out the full guide at this link.What this means for investorsWhile both VBR and IJJ focus on value stocks, they differ in the sizes of companies they target.VBR focuses on small-cap stocks, while IJJ targets mid-caps. This difference can affect the funds’ performance and risk profiles. Generally speaking, smaller companies tend to carry higher risk but have greater growth potential. Small-cap stocks, then, can be more volatile but also more lucrative than mid-caps.Case in point: VDC has experienced a slightly steeper max drawdown over the last five years, but it’s also marginally outperformed IJJ in one-year total returns.Aside from market cap differences, the two funds also diverge on size and diversification. VDC is much broader, holding nearly three times as many stocks as IJJ. Its top stocks also make up a slightly smaller proportion of the portfolio, which can help reduce single-stock risk. That diversification can help mitigate volatility, especially among small-cap stocks.VDC can be the better choice for investors seeking diversified exposure to the small-cap value segment of the market, while IJJ can be a smart buy for those seeking slightly more stability with mid-cap stocks.Read NextFeb 13, 2026 •By Robert IzquierdoBetter iShares ETF: IJJ's Mid-Cap Focus vs. ISCV's Small-Cap StocksFeb 8, 2026 •By Robert IzquierdoBetter Value ETF: iShares' IJJ vs. State Street's SLYVFeb 8, 2026 •By Adé HennisIJJ vs. IWN: Can the Mid-Cap ETF Compete with a Small-Cap Fund?Jan 10, 2026 •By Adé HennisISCV vs. IJJ: The Rising Small-Cap ETF That Challenges the Popular Mid-Cap ETFDec 27, 2025 •By Sara AppinoIJJ vs. VBR: Should Value Investors Choose Mid-Cap Stability or Small-Cap Growth Potential?Dec 27, 2025 •By Sara AppinoSize Matters: Comparing Small-Cap and Mid-Cap Value Funds ISCV and IJJAbout the AuthorKatie Brockman is a contributing writer at The Motley Fool covering retirement, Social Security, and investing fundamentals. Prior to The Motley Fool, Katie held various writing and editing roles at companies ranging from small start-ups to multimillion-dollar brands. Her work has appeared in USA Today, Inc magazine, and other authoritative media outlets. She holds a bachelor’s degree in business administration and management from Illinois Wesleyan University.TMFKatieBrockmanStocks MentionediShares Trust - iShares S&P Mid-Cap 400 Value ETFNYSEMKT: IJJ$142.20 (+0.81%) $+1.15Vanguard Small-Cap Value ETFNYSEMKT: VBR$231.31 (+1.02%) $+2.33*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.