VB vs ISCB: Which Small-Cap ETF Offers Better Value?
This Vanguard ETF wins on costs, while the iShares delivered stronger 12-month returns.
The Vanguard Morningstar Small-Cap ETF (VB) and the iShares Morningstar Small-Cap ETF (ISCB) are two low-cost investment options that provide access to the small-cap market. The primary difference between the two lies in their assets under management, with VB boasting a significantly larger pool of assets compared to ISCB. Small-cap stocks, which represent companies with a lower market capitalization, are often sought after by investors who seek the growth potential of emerging firms before they expand into large-cap status.
While small-cap stocks can exhibit higher volatility compared to their larger counterparts, exchange-traded funds (ETFs) help mitigate this risk by diversifying investments across multiple companies. This diversification maintains exposure to the broader asset class while reducing the impact of any single company's performance.
Beta is a metric used to measure the price volatility of an investment relative to the S&P 500. It is calculated using the fund's monthly returns over its available history, which can span up to five years. The one-year return of an investment represents its total return over the trailing 12-month period. Dividend yield, on the other hand, refers to the trailing-12-month distribution yield, indicating the annual income generated by the ETF through dividends.
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