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Expense ratios, sector tilts, and portfolio breadth set these two value ETFs apart. VBR and IJJ both seek diversified exposure to U.S. value stocks, but they differ in the size of companies they target.
VBR (Vanguard) and IJJ (iShares) offer the following key metrics:
Beta measures price volatility relative to the S&P 500. The 1-year return represents total return over the trailing 12 months.
Over the past five years, both funds posted similar maximum drawdowns, with IJJ showing slightly less downside. For the period measured, IJJ’s $1,000 growth edge is modest, though both funds remained within a comparable long-term range for investors.
IJJ tracks mid-cap U.S. companies with value characteristics and holds 305 stocks. The portfolio is concentrated in financial services (23%), with meaningful allocations to industrials and consumer cyclicals. Its largest holdings include US Foods, Reliance, and Toll Brothers, each at around 1% of assets, indicating a relatively even distribution across constituents.
VBR draws from a broader universe of 845 small-cap value stocks. Its highest weights are in financial services (19%), industrials (18%), and consumer cyclicals (13%). Top holdings—NRG Energy, EMCOR Group, and Atmos Energy—each account for less than 0.75% of assets, reflecting wide diversification and a focus on smaller companies relative to IJJ.
Both ETFs target value stocks, but the key differentiator is company size: VBR focuses on small caps, while IJJ targets mid-caps. That distinction can influence performance and risk characteristics. In general, smaller companies tend to carry higher risk but may offer greater growth potential, which can translate into more volatility for small-cap value strategies compared with mid-cap approaches.
Beyond market-cap focus, the funds also differ in diversification. VBR holds nearly three times as many stocks as IJJ, and its top holdings represent a smaller share of the portfolio. Greater breadth can help reduce single-stock risk and may help mitigate volatility, particularly in small-cap segments.
VBR may appeal to investors seeking diversified exposure to small-cap value, while IJJ may fit investors looking for mid-cap value exposure with slightly less downside over the five-year period shown.
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