VBR vs. SLYV: Is Broader Small-Cap Value Exposure or a Focus on Profitable Companies the Better Choice for Investors?

By Eric Trie – Mar 19, 2026 at 8:01PM ESTKey PointsSLYV charges a higher expense ratio but has slightly outperformed VBR over the past yearBoth funds offer similar dividend yields and target small-cap value stocks, but SLYV holds fewer companiesSLYV has experienced deeper drawdowns, while VBR has larger assets under management (AUM) and greater diversificationVanguard Small-Cap Value ETF (NYSEMKT:VBR) and State Street SPDR S&P 600 Small Cap Value ETF (NYSEMKT:SLYV) both focus on U.S. small-cap value stocks, but VBR offers lower costs and broader diversification, while SLYV has shown stronger recent returns and a more concentrated portfolio.Both VBR and SLYV aim to capture the performance of U.S. small-cap value stocks using passive, index-based approaches. This comparison examines how these two funds differ in costs, portfolio composition, risk, and recent performance, providing context for which may better fit different investor preferences.Snapshot (cost & size)MetricVBRSLYVIssuerVanguardSPDRExpense ratio0.05%0.15%1-yr return (as of 2026-03-11)17.9%19.4%Dividend yield1.8%1.87%Beta1.101.22AUM$64.18 billion$4.1 billionBeta 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.VBR is more affordable with an expense ratio of 0.05%, compared to SLYV’s 0.15%. Both funds offer a matching dividend yield of 1.9%, making cost the main differentiator for long-term, fee-conscious investors.Performance & risk comparisonMetricVBRSLYVMax drawdown (5 y)(24.20%)(28.68%)Growth of $1,000 over 5 years$1,279$1,074What's insideSLYV tracks the S&P SmallCap 600 Value Index, focusing on stocks with strong value metrics such as book value to price and earnings to price. With 460 holdings, its largest sector exposures are Financial Services (20%), Consumer Cyclical (17%), and Industrials (14%). Top positions include Eastman Chemical Co (EMN 0.22%), Lkq Corp (LKQ 0.24%), and Jackson Financial Inc A (JXN 0.47%). SLYV has been available for more than 25 years, offering a relatively concentrated portfolio compared to broader peers.VBR, by contrast, tracks the CRSP US Small Cap Value Index and holds 841 companies, making it more diversified. It is most heavily weighted toward Industrials (19%), Financial Services (18%), and Consumer Cyclical (13%). Its largest holdings are Sandisk Corp (SNDK +2.48%), EMCOR Group Inc (EME +2.05%), and NRG Energy Inc (NRG +1.44%). Neither fund introduces unusual quirks, and both take a straightforward approach to small-cap value.For more guidance on ETF investing, check out the full guide at this link.What this means for investorsSmall-cap value investing covers a wide range of companies, from profitable businesses trading at modest valuations to firms facing operational or financial pressure. That variation is built into how indexes are constructed and helps explain the difference between the Vanguard Small-Cap Value ETF and the SPDR S&P 600 Small Cap Value ETF.State street SPDR S&P 600 Small Cap Value ETF follows a more selective approach by tracking an index that requires companies to be profitable, which reduces exposure to businesses with weaker earnings profiles. This tends to tilt the portfolio toward more established small-cap companies and can help during periods when investors focus more closely on fundamentals. Vanguard Small-Cap Value ETF takes a broader approach, holding a much wider range of small-cap value stocks and capturing more of the category’s full opportunity set. That includes companies earlier in a recovery cycle, along with firms whose lower valuations may reflect greater uncertainty.For investors, these differences stand out over a full market cycle. Broader small-cap value funds like VBR may do better during economic recoveries, when lower-quality or cyclical companies bounce back. More selective funds like SLYV might perform better when markets are cautious and profitability is more important. In the end, the choice depends on whether you want wider exposure to small-cap value stocks or prefer a portfolio focused on companies with steady earnings.Read NextMar 16, 2026 •By Jake LerchSmall Cap Value ETFs: IWN Boasts Greater Small Cap Exposure But SLYV Has a Higher YieldFeb 8, 2026 •By Robert IzquierdoBetter Value ETF: iShares' IJJ vs. State Street's SLYVJan 10, 2026 •By Katie BrockmanSLYV and ISCV Both Offer Small-Cap Value Diversification, but Which One Is the Better Investment?Dec 30, 2025 •By Emma NewberyVBR vs. SLYV: Why VBR's Lower Fees and Broader Diversification Give it The EdgeDec 20, 2025 •By Jeff SantoroIWN vs. SLYV: Sector Allocations Make the DifferenceDec 18, 2025 •By Josh Kohn-LindquistISCV vs. SLYV: Which Small-Cap ETF Is the Better Buy Right Now?About the AuthorEric Trie is a Motley Fool contributing stock analyst covering technology and semiconductors, healthcare, financial services, and consumer sectors. Previously, he worked in investment analysis and financial writing. He holds a B.A. in Philosophy from Rutgers University. Eric lives in New York City and is an avid sports fan.CMFIdeaMachineStocks MentionedSPDR Series Trust - State Street SPDR S&P 600 Tm Small Cap Value ETFNYSEMKT: SLYV$93.12(+0.33%)+$0.31Vanguard Small-Cap Value ETFNYSEMKT: VBR$216.19(+0.12%)+$0.26*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.