The iShares SP Mid-Cap 400 Value ETF (IJJ 1.55%) and Vanguard Small-Cap Value ETF (VBR 1.57%) differ most in cost, size, and portfolio breadth -- with VBR offering much lower fees and nearly triple the holdings, while IJJ provides a mid-cap focus.
These two value-oriented exchange-traded funds aim to capture U.S. stocks trading below their estimated worth, but with different approaches: IJJ targets mid-cap companies with value characteristics, while VBR tracks a broader small-cap value index. Here’s how they stack up on cost, performance, risk, and what’s inside.
Snapshot (cost & size)
| Metric | IJJ | VBR |
|---|---|---|
| Issuer | IShares | Vanguard |
| Expense ratio | 0.18% | 0.07% |
| 1-yr return (as of Dec. 23, 2025) | 7.6% | 8.06% |
| Dividend yield | 1.66% | 1.97% |
| Beta | 1.14 | 1.12 |
| AUM | $8.0 billion | $59.6 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
VBR stands out as the more affordable choice with a 0.07% expense ratio, compared to IJJ’s 0.18%.
Performance & risk comparison
| Metric | IJJ | VBR |
|---|---|---|
| Max drawdown (5 y) | -22.68% | -24.19% |
| Growth of $1,000 over 5 years | $1,537 | $1,502 |
What's inside
VBR holds a sweeping portfolio of 840 stocks, focusing on U.S. small-cap companies that meet value criteria. The fund’s largest sector exposures are industrials (19%), financial services (18%), and consumer cyclicals (13%). Its top holdings, including NRG Energy (NRG +2.54%), Sandisk (SNDK 5.59%), and EMCOR Group (EME 1.45%), each make up less than 1% of assets, signaling broad diversification. With 21.9 years in operation and $59.6 billion in assets under management (AUM), VBR’s scale and index-tracking approach may appeal to investors seeking wide market coverage at a low cost.
IJJ, by contrast, concentrates on mid-cap value stocks, with the heaviest weights in financial services (19%), industrials (15%), and consumer cyclicals (12%). IJJ’s 309 holdings create a more focused portfolio, potentially leading to different risk and return characteristics versus VBR’s broader, small-cap emphasis.
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What this means for investors
IJJ and VBR both target undervalued American companies, but IJJ focuses on mid-caps while VBR goes smaller, creating fundamentally different risk-return profiles for investors. The cost difference is substantial. VBR charges just 0.07% annually compared to IJJ's 0.18% expense ratio, meaning Vanguard's fund costs less than half as much to own. Additionally, VBR dominates in scale with approximately $59.6 billion in assets versus IJJ's $8 billion, reflecting its popularity among value investors.
However, IJJ brings the appeal of mid-cap stocks, which historically offer a middle ground between small-cap volatility and large-cap stability. Mid-cap companies have typically passed their riskiest early-stage growth phase but still retain meaningful expansion potential. Small-cap stocks in VBR, by contrast, can deliver stronger long-term returns but experience sharper price swings during market downturns.
Cost-conscious value investors prioritizing maximum long-term growth potential should favor VBR's ultra-low fees and small-cap exposure. Investors seeking a somewhat smoother ride with value characteristics might prefer IJJ's mid-cap approach, accepting slightly higher costs for potentially reduced volatility.
Glossary
Expense ratio: The annual fee, expressed as a percentage of assets, charged by a fund to cover operating costs.
Dividend yield: Annual dividends paid by a fund or stock, divided by its current price, shown as a percentage.
Beta: A measure of a fund's volatility compared to the overall market, typically the S&P 500.
Assets under management (AUM): The total market value of all assets managed by a fund or investment company.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Growth of $1,000: How much a $1,000 investment would have increased or decreased over a set time frame.
Small-cap: Companies with relatively small total market values, typically between $300 million and $2 billion.
Mid-cap: Companies with medium-sized total market values, generally between $2 billion and $10 billion.
Value stocks: Shares of companies considered undervalued based on financial metrics like earnings or book value.
Sector exposure: The proportion of a fund’s assets invested in specific industry categories, such as financials or industrials.
Index-tracking: A strategy where a fund aims to replicate the performance of a specific market index.
