My ETF Journey

IJR vs VB: Head-to-Head Comparison

Last updated: March 2026Small Cap

Quick Verdict

Both ETFs score equally well for beginners (9/10). Your choice depends on your specific investment goals.

IJR: 9/10 Beginner ScoreVB: 9/10 Beginner Score

Side-by-Side Comparison

MetricIJRVB
Expense Ratio0.06%0.05%
AUM$80.0B$55.0B
Dividend Yield1.50%1.40%
Holdings6001,400
1-Year Return11.00%10.00%
5-Year Return (Ann.)9.50%9.00%
10-Year Return (Ann.)9.00%8.50%
Beta1.121.15
P/E Ratio18.520.5

Key Differences Between IJR and VB

IJR (iShares Core S&P Small-Cap ETF) is a us small-cap fund managed by BlackRock. IJR tracks the S&P SmallCap 600 Index, which screens for profitability before including companies, making it a higher-quality small-cap option. Unlike broader small-cap indexes, the S&P 600 requires positive earnings, filtering out unprofitable speculative companies. This quality screen has historically helped IJR deliver better risk-adjusted returns than many competing small-cap funds.

VB (Vanguard Small-Cap ETF) is a us small-cap fund managed by Vanguard. VB tracks the CRSP US Small Cap Index, providing exposure to a broad range of small U.S. companies with higher growth potential but also more volatility. Small-cap stocks have historically outperformed larger companies over very long periods, though with bumpier rides along the way. This fund is a low-cost way to tap into the entrepreneurial engine of the American economy.

The most notable differences are in fees (0.06% vs 0.05%), number of holdings (600 vs 1,400), and 5-year returns (9.50% vs 9.00%).

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Holdings Overlap Analysis

5%

Holdings Overlap

IJR and VB share only 5% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.

Cost Comparison Over Time

If you invest $10,000 and hold for 20 years (assuming 8% annual returns):

IJR

Fee cost: $515

VB

Fee cost: $430

Over 20 years, the fee difference amounts to $85 on a $10,000 investment. The cost difference is negligible — choose based on other factors.

Which One Should a Beginner Choose?

Choose IJR if: You want quality-conscious investors wanting small-cap exposure without the junkiest stocks, core small-cap allocation in a diversified portfolio, investors who prefer index methodology with built-in quality screening. It's managed by BlackRock with an expense ratio of 0.06%.

Choose VB if: You want aggressive long-term investors willing to tolerate higher volatility, portfolio completion strategies needing small-cap representation, investors building a total market portfolio with separate size-based etfs. It's managed by Vanguard with an expense ratio of 0.05%.

Can You Own Both IJR and VB?

Absolutely! With only 5% overlap, IJR and VB complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.

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Frequently Asked Questions

Should I buy IJR or VB?

Both ETFs score equally well for beginners (9/10). Your choice depends on your specific investment goals. However, both are solid options. IJR is best for investors who want quality-conscious investors wanting small-cap exposure without the junkiest stocks, while VB is better suited for aggressive long-term investors willing to tolerate higher volatility.

What is the difference between IJR and VB?

IJR (iShares Core S&P Small-Cap ETF) tracks us small-cap investments with 600 holdings and a 0.06% expense ratio. VB (Vanguard Small-Cap ETF) focuses on us small-cap with 1,400 holdings at 0.05%. Their top holdings overlap by 5%.

Can I own both IJR and VB?

Yes! With only 5% holdings overlap, IJR and VB complement each other well. Owning both gives you broader diversification.