Small Cap ETFs

• Three index families. Small cap ETFs follow Russell, S&P or Morningstar and Dow Jones rules, and the index matters more than the ticker.
• Cost range. The six small cap ETFs here charge between 0.03% and 0.19%, so cost differs by $160 a year on $100,000.
• Heavy overlap. Small cap ETFs that follow the same index repeat each other. IWM and VTWO share about 90% of their weight.
• Different stocks. The S&P 600 requires profits, so IJR holds 659 stocks against about 2,000 for the Russell funds.
• Size varies. The average company in these funds ranged from about $2.9 billion to $9.9 billion in the dated figures.
• Risk. In 2022 the six small cap ETFs returned between -9.4% and -20.5%, and small companies can swing more than large ones.

Dates differ by issuer and are shown in brackets, so compare the shape of each row, not the decimals. The trailing 12-month yield is shown for all six so the funds use one measure. Net assets are for the ETF share class only, from StockAnalysis (Nov 9, 2026). Sources are the issuer pages and fact sheets named on each comparison.

The Russell 2000 funds, IWM and VTWO, hold the smaller 2,000 stocks in the Russell 3000 and take in whatever the index rules admit, profitable or not. The two funds share about 90% of their weight in the files compared here, so the choice between them comes down to cost and trading volume. IWM charges 0.19% and VTWO 0.06%.

IJR follows the S&P SmallCap 600, a committee-run index that requires positive earnings. It holds 659 stocks, far fewer than the Russell funds, and the ten largest made up 5.1% of the fund. IJR shares about 48% of its weight with IWM and 45.5% with VTWO, so it is a noticeably different set of companies.

VB, SCHA and VBR use other rules. VB and VBR follow Morningstar indexes, with VBR holding only the value half. SCHA follows a Dow Jones index that takes in a broad slice of small companies. VB and VBR share about 57% of their weight, and SCHA shares between 40% and 66% with the other blend funds.

When a Russell 2000 fund fits: you want the most widely quoted small cap index. When IJR fits: you want a profit screen. When VB or SCHA fits: you want the lowest cost and a wider net. When VBR fits: you want a value tilt on purpose. These describe what the funds hold, not recommendations.

Every small cap fund has to answer two questions: which companies are small, and which of them belong. Russell ranks all U.S. stocks by size and takes the 1,001st to the 3,000th, then rebalances once a year. S&P requires a company to be profitable and sets size limits, then a committee decides on additions. Morningstar and Dow Jones use their own size cut-offs.

The effect shows up in the numbers. The average company size ran from $2.9 billion for VTWO to $9.9 billion for VB in the dated figures used here, and the price-to-earnings ratios ranged from 13.2x for VTWO to 19.6x for VB. The funds do not measure these on the same date or by the same method, so compare the direction rather than the decimals.

Sector mix differs too. Health care was the largest sector in IWM at 20.9% and VTWO at 20.0%, while financials led IJR at 18.1% and SCHA at 18.2%. In VB industrials led at 20.3%, and in VBR industrials led at 19.2% with real estate at 9.6%.

Sector shares are from the issuer pages and holdings files named on each comparison. The VTWO sector mix is calculated from its holdings using iShares Russell 2000 sector labels. Labels differ slightly between providers.

Issuers report returns to different month-ends, which makes a side-by-side table misleading. To fix that, every figure below is a market price total return computed from daily adjusted closing prices on the same dates, with distributions reinvested. The one-, three- and five-year figures end on Nov 9, 2026. Figures for 3, 5 and 10 years are annualized.

Source: StockAnalysis daily price history, adjusted for distributions, computed Nov 9, 2026. These are market price returns, not issuer NAV returns, and they exclude your own taxes and costs. Past performance does not guarantee future results.

Over the last year VBR led the group at 22.37% and VB trailed at 17.75%. Over three years the six sat in a narrower band, from 17.94% for IJR to 20.82% for SCHA, annualized. Over five years VBR led at 8.29% a year against 4.50% for IWM. The calendar years show how much the leader changes. In 2022 the six returned between -9.38% for VBR and -20.49% for VTWO, and in 2025 VTWO led at 12.90% while IJR gained only 5.89%.

Over 10 years the spread was narrow, from 9.12% a year for IWM to 10.29% for VB. Each comparison page repeats this table for its own two funds and also shows the issuers’ own NAV returns with their dates where the issuer reports them. Read how to measure investment growth for how to read returns correctly.

Small cap ETFs pay less than large cap or dividend funds, and the amount moves from quarter to quarter. All six pay quarterly. VBR pays the most, and SCHA pays the least per share because its price per share is lowest.

The fair comparison is the total paid over a full 12 months against the 12 months before, counted by ex-dividend date. The table below does that for all six funds using the payout histories on StockAnalysis.

Per-share dollars differ because share prices differ, so compare yields across funds and use the dollar change only within one fund. IJR’s prior 12 months include a large payment in December 2024, so its change reads negative. Source: StockAnalysis dividend history (Nov 9, 2026).

Small cap ETF yield, measured as trailing 12-month yield, was 0.98% (Sep 30, 2026) for IWM, 1.19% (Nov 9) for VTWO, 1.26% (Sep 30, 2026) for IJR, 1.24% (Nov 9) for VB, 1.13% (Sep 30, 2026) for SCHA and 1.78% (Nov 9) for VBR on the dates in the table above. The iShares and Schwab figures and the Vanguard figures carry different dates, so small gaps can come from timing alone.

See what is dividend yield and yield vs total return for how to read yield next to price change.

Every comparison page matches the two funds’ full holdings by ticker. The overlap figure adds up the smaller of the two weights for every stock both funds hold.

The result splits the six funds into clear groups. IWM and VTWO share about 90% of their weight. SCHA shares about 66% with each Russell 2000 fund. VB and VBR share about 57%. IJR is the outlier, sharing 18% to 48% with the others, and VB shares only about 25% with the Russell funds.

Overlap is an estimate. IWM, IJR and SCHA use holdings files dated Nov 6, 2026, the same day, while VTWO, VB and VBR use Vanguard holdings dated Sep 30, 2026, so pairs that cross the two groups mix dates. Cash, futures and unmatched tickers are left out. Each comparison page also lists the ten largest holdings for both funds.

Each page below puts two funds side by side on cost, yield, holdings overlap, sector mix, returns, payouts and the ten largest holdings. Every figure carries its date, and the data room at the bottom of each page lists the source and grade of each number. These small cap ETF comparisons are the quickest way to see what you own. Pairs inside one group, such as IWM and VTWO, show how little the same index differs between issuers. Pairs that cross groups, such as IJR and VBR, differ in kind.

• 1. IndexCheck which index the fund follows and what it requires, such as the profit screen in the S&P 600.
• 2. StyleBlend funds hold growth and value. VBR holds only value, so it will behave differently.
• 3. CostExpense ratios run from 0.03% to 0.19% here. Add the bid/ask spread when you trade.
• 4. ConcentrationLook at the ten largest holdings. They are 2.8% to 5.7% of each fund, small compared with large cap funds.
• 5. OverlapCompare holdings. If most of the stocks repeat what you own, a second fund adds little.
• 6. IncomeCompare 12-month totals and yields, not a single quarter.
• 7. Dates and sourcesDo not rank funds on mismatched dates. Compare returns only when the periods match.

Start with how to research an ETF if the terms are new, and size any small cap fund inside your whole allocation with asset allocation explained.

The expense ratio is the annual fee that small cap ETFs take from the fund. On a $100,000 balance, 0.03% is $30 a year, 0.05% is $50, 0.06% is $60 and 0.19% is $190. The gaps are small in any one year, but the fee comes straight out of return and compounds over decades. Use the ETF Fee Calculator to turn the fees into dollars over your own time horizon.

Trading costs come from the bid/ask spread, the gap between what buyers pay and sellers receive. Small company stocks trade less than large ones, so the funds’ spreads can widen when markets are stressed. IWM is the most heavily traded of the six. Check the live spread, use limit orders for larger amounts and avoid the first and last minutes of the session.

Tax cost matters too. Funds that trade often can pass on capital gains, though ETFs usually limit this. Dividends are taxed in the year they are paid. The treatment depends on the account, so see the Canada section below and confirm the details with a qualified tax professional.

You want the best-known small cap index: IWM or VTWO, which hold the Russell 2000. Compare them on the IWM vs VTWO page.

You want a profit screen: IJR, which only holds companies with positive earnings. See IWM vs IJR and IJR vs VB.

You want the lowest cost and a wide net: VB or SCHA, both at 0.03%. See VB vs SCHA.

You want a value tilt: VBR holds only small cap value stocks. Read VB vs VBR and remember the two share about 57% of their weight.

You already own a U.S. total market or S&P 500 fund: a small cap fund then adds smaller companies. Check what you own with the Diversification Calculator and read VOO vs VTI for the large cap side. Size any position against your whole portfolio and your time horizon.

Owning two funds that follow the same index. IWM plus VTWO repeats about 90% of the same stocks. Two tickers can still be one holding.

Assuming all small cap funds match. IJR holds 659 profitable companies and the Russell funds hold about 2,000. The index, not the label, is what you own.

Mixing blend and value. Owning VB and VBR together overlaps by about 57%, so the value tilt is smaller than it looks.

Comparing returns over different dates. Issuers report to different month-ends. Compare returns only when the dates match, as the tables on this site do.

Chasing last year. In the same-date returns above, the leader changed from year to year. A good year is not a forecast.

Ignoring the spread. A low expense ratio does not help if you pay a wide spread each time you trade.

Owning hundreds or thousands of small companies lowers the risk of any one company, but it does not remove market risk. The funds can fall together and the recovery can take years. Past losses are not a limit on future ones.

U.S.-listed funds such as IWM, VTWO, IJR, VB, SCHA and VBR trade in U.S. dollars. Buying them from a Canadian account usually involves converting Canadian dollars, which adds a cost, and some brokers let you hold U.S. dollars to avoid repeated conversions. A U.S. small cap fund also adds exposure to smaller U.S. companies that Canadian-listed funds hold in small amounts.

U.S. dividends paid to Canadian holders are generally subject to U.S. withholding tax, and the treatment depends on the account type. It can differ between an RRSP, a TFSA and a non-registered account, and Canadian-listed small cap funds can be taxed differently from U.S.-listed ones. This is general education, not tax advice.

Confirm the rules for your accounts with a qualified tax professional, and see how to build an ETF portfolio for how a small cap fund fits inside an allocation.

Figures come from the issuer pages and files for each fund: Vanguard for VTWO, VB and VBR, iShares for IWM and IJR, and Schwab for SCHA, plus StockAnalysis for net assets, payouts and the same-date returns.

Returns are market price total returns computed from daily adjusted closing prices to Nov 9, 2026, so all six funds share the same dates. Overlap sums the smaller weight of each stock by ticker and is an estimate, since the holdings dates differ for some pairs. The pages are educational research, not personal advice, and they do not recommend a particular fund for your situation.

Pathways, not rankings or recommendations.