VBR vs. IJJ: Are Small-Cap or Mid-Cap Stocks the Better Choice for Value Investors?
The Motley Fool
by newsfeedback@fool.com (Katie Brockman)February 14, 2026
AI-Generated Deep Dive Summary
The article compares two popular value ETFs: Vanguard Small-Cap Value ETF (VBR) and iShares SP Mid-Cap 400 Value ETF (IJJ), focusing on their strategies, fees, returns, and risk profiles. While both aim to provide diversified exposure to U.S. value stocks, they differ in the size of companies they target—small-cap for VBR and mid-cap for IJJ. This distinction impacts their performance, expense ratios, portfolio construction, and sector tilts.
VBR is known for its low expense ratio (0.14%) and broad exposure to small-cap value stocks across various sectors. Its higher volatility, indicated by a beta of 1.27, reflects the inherent risks and potential rewards of investing in smaller companies. In contrast, IJJ has a slightly higher fee (0.20%) but offers more stability with its mid-cap focus, as mid-sized companies are generally less volatile than small-caps. The ETF’s sector concentration, particularly in industrials and financials, can lead to higher returns if these sectors perform well.
The article highlights the importance of understanding each ETF's strengths for investors. VBR is ideal for those seeking growth opportunities through undervalued small-cap stocks, while IJJ may appeal to those preferring mid-caps’ stability and potential for consistent returns. Both ETFs cater to value investors but offer different risk-reward profiles depending on portfolio goals.
For readers interested in finance and investing, this comparison provides valuable insights into selecting the right ETF based on investment strategy, risk tolerance, and market conditions. By analyzing factors like expense ratios, beta, and sector exposure, investors can make informed decisions tailored to their financial objectives.
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Originally published on The Motley Fool on 2/14/2026