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VB and SPSM offer low-cost small-cap exposure, with different yields
SPSM currently has a higher trailing yield, 1.4% at about $56.84 versus VB's 1.2% at roughly $297.01, despite both charging 0.03% annually.
Yahoo Finance highlights two low-cost U.S. small-cap ETF options, the Vanguard Small-Cap ETF (VB) and the State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM), which both carry an expense ratio of 0.03%. The article notes VB provides exposure to 1,307 holdings while SPSM targets a more concentrated set of 608 companies.
The funds follow different benchmarks, with VB tracking a broad small-cap index and SPSM following the S&P SmallCap 600, which includes specific profitability screens that can affect performance outcomes. The article also compares equity volatility using beta, along with the role of trailing total return and dividend yield metrics.
On distributions, the article says SPSM offers the higher trailing-12-month payout, with $0.79 per share, translating to a 1.4% yield at a recent $56.84 share price. By comparison, VB paid $3.61 per share over the trailing 12 months, or about a 1.2% yield based on a recent $297.01 price.
Yahoo Finance adds that the two ETFs delivered nearly identical returns and volatility over the past five years and share the same expense rate, while SPSM reportedly outperformed over the past year. The article frames the choice as weighing concentration and current income against broader diversification and index approach.