Small Cap Value ETFs: IWN Boasts Greater Small Cap Exposure But SLYV Has a Higher Yield

The State Street SPDR S&P 600 Small Cap Value ETF (NYSEMKT:SLYV) and the iShares Russell 2000 Value ETF (NYSEMKT:IWN) some people U.S. small-cap worth stocks, but IWN charges a higher fee, holds galore much companies, and has outperformed connected caller full return.

Both SLYV and IWN purpose to seizure the worth conception of the U.S. small-cap market, but they disagree successful scale operation and extent of coverage. This examination examines their costs, risks, caller performance, assemblage tilts, and portfolio constitution to assistance investors determine which attack whitethorn amended acceptable their goals.

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

SLYV looks much affordable successful presumption of fees, charging 0.15% compared to IWN’s 0.24%, portion SLYV besides offers a somewhat higher dividend yield. The quality successful expenses whitethorn adhd up implicit clip for cost-conscious investors.

IWN tracks a wide small-cap worth universe, holding 1,402 stocks and spanning 25.6 years of history. Its largest assemblage weights are fiscal services astatine 24%, followed by industrials and existent estate, t 11%. Each Top holding, specified arsenic Echostar Corp Class A(NASDAQ:SATS), Hecla Mining(NYSE:HL), and Ttm Technologies Inc, accounts for little than 1.1% of assets, reflecting wide diversification. No notable structural quirks are present.

SLYV, by contrast, holds 460 companies focused connected fiscal services, user cyclicals, and industrials, with much concentrated apical positions similar Eastman Chemical Co(NYSE:EMN), Lkq Corp(NASDAQ:LKQ), and Jackson Financial Inc A(NYSE:JXN), each astatine astir 1 percent. This narrower attack whitethorn make subtle differences successful assemblage hazard and show patterns.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.

Both State Street SPDR S&P 600 Small Cap Value ETF (SLYV) and iShares Russell 2000 Value ETF (IWN) connection vulnerability to U.S. small-cap worth stocks. Yet, determination are differences betwixt these 2 ETFs.

IWN holds astir 3 times arsenic galore banal positions (1,402 vs. 460) arsenic SLYV, offering greater diversification. In addition, IWN has posted a higher instrumentality implicit the past twelvemonth (25.9% vs. 19.4%). Finally, IWN offers greater liquidity with $12.5 cardinal successful AUM versus $4.1 cardinal for SLYV.