IJR vs VBR: What’s The Difference? 2023LAST UPDATED: July 25, 2023 | By Conrad Golly
The iShares Core S&P Small-Cap ETF (IJR) and the Vanguard Small-Cap Value ETF (VBR) are both interesting ETFs. IJR tracks S&P SmallCap 600 Index and VBR tracks CRSP US Small Value. So, what’s the difference between IJR vs VBR? And which fund is better?
IJR vs VBR: The expense ratio of IJR is 0.06% and VBR is 0.07%. IJR’s biggest holding is BlackRock Cash Funds Treasury SL Agency and VBR’s biggest holding is Builders FirstSource Inc. Overall, IJR has provided 0.76% Higher returns than VBR over the past ten years.In this article, we’ll compare IJR vs VBR. We’ll look at holdings and performance, as well as at their portfolio growth and annual returns. Moreover, I’ll also discuss IJR’s and VBR’s industry exposure, risk metrics, fund composition and examine how these affect their overall returns.
Summary IJR vs VBR
VBR vs IJR Table
|Name||iShares Core S&P Small-Cap ETF||Vanguard Small-Cap Value ETF|
|Category||Small Blend||Small Value|
The iShares Core S&P Small-Cap ETF (IJR) is a S&P SmallCap 600 Index fund that is issued by iShares. It currently has $63.29B total assets under management and has yielded an average annual return of 11.50% over the past 10 years. The fund has a dividend yield of 1.62% with an expense ratio of 0.06%.
The Vanguard Small-Cap Value ETF (VBR) is a CRSP US Small Value that is issued by Vanguard. It currently has $44.18B total assets under management and has yielded an average annual return of 10.74% over the past 10 years. The fund has a dividend yield of 2.30% with an expense ratio of 0.07%.
IJR’s dividend yield is Lower than that of VBR (1.62% vs 2.30%). Also, IJR yielded on average 0.76% Higher per year over the past decade (11.50% vs 10.74%). The expense ratio of IJR is -0.01% percentage points Lower than VBR’s (0.06% vs 0.07%).
Fund Composition IJR vs VBR
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Industry Exposure Table vs IJR
The iShares Core S&P Small-Cap ETF (IJR) has the most exposure to the Industrials sector at 17.60%. This is followed by Technology and Financial Services at 15.23% and 14.20% respectively. Utilities (2.36%), Communication Services (2.52%), and Energy (4.19%) only make up 9.07% of the fund’s total assets.
IJR’s middle weighted sectors is made up with moderate exposure to Basic Materials, Consumer Defensive, Real Estate, Healthcare, and Consumer Cyclical stocks at 4.84%, 5.73%, 8.17%, 11.11%, and 13.79%.
The Vanguard Small-Cap Value ETF (VBR) has the most exposure to the Industrials sector at 21.27%. This is followed by Financial Services and Consumer Cyclical at 18.53% and 12.90% respectively. Communication Services (1.85%), Consumer Defensive (4.67%), and Energy (4.74%) only make up 11.26% of the fund’s total assets.
VBR’s middle weighted sectors is made up with moderate exposure to Utilities, Basic Materials, Healthcare, Technology, and Real Estate stocks at 4.85%, 5.70%, 6.29%, 11.11%, and 13.79%.
IJR is -3.67% Less exposed to the Industrials sector than VBR (17.60% vs 21.27%). IJR’s exposure to Technology and Financial Services stocks is 7.56% More and -4.33% Less respectively (15.23% vs. 7.67%) and (14.20% vs. 18.53%).
In total, IJR’s bottom three industries, Energy, Communication Services, and Utilities also make up -2.19% Lower of the fund’s holdings compared to VBR’s bottom three industries. (9.07% vs. 11.26%).
Holdings iShares Core S&P Small-Cap ETF (IJR)
|BlackRock Cash Funds Treasury SL Agency||1.63%|
|SPS Commerce Inc||0.64%|
|Onto Innovation Inc||0.61%|
|Comfort Systems USA Inc||0.60%|
|e.l.f. Beauty Inc||0.60%|
|Axcelis Technologies Inc||0.59%|
|Ensign Group Inc||0.57%|
|Applied Industrial Technologies Inc||0.54%|
|Merit Medical Systems Inc||0.54%|
IJR’s Top Holdings are BlackRock Cash Funds Treasury SL Agency, Rambus Inc, SPS Commerce Inc, Onto Innovation Inc, and Comfort Systems USA Inc at 1.63%, 0.79%, 0.64%, 0.61%, and 0.60%.
e.l.f. Beauty Inc (0.60%), Axcelis Technologies Inc (0.59%), and Ensign Group Inc (0.57%) have a slightly smaller but still significant weight. Applied Industrial Technologies Inc and Merit Medical Systems Inc are also represented in the IJR’s holdings at 0.54% and 0.54%.
Holdings Vanguard Small-Cap Value ETF (VBR)
|Builders FirstSource Inc||0.70%|
|Atmos Energy Corp||0.63%|
|Reliance Steel & Aluminum Co||0.57%|
|Booz Allen Hamilton Holding Corp Class A||0.55%|
|First Citizens BancShares Inc Class A||0.52%|
|Gaming and Leisure Properties Inc||0.49%|
|Kimco Realty Corp||0.47%|
IJR’s Top Holdings are Builders FirstSource Inc, Atmos Energy Corp, IDEX Corp, Bunge Ltd, and Reliance Steel & Aluminum Co at 0.70%, 0.63%, 0.62%, 0.57%, and 0.57%.
Booz Allen Hamilton Holding Corp Class A (0.55%), First Citizens BancShares Inc Class A (0.52%), and Gaming and Leisure Properties Inc (0.49%) have a slightly smaller but still significant weight. Kimco Realty Corp and Jabil Inc are also represented in the ’s holdings at 0.47% and 0.46%.
Risk Analysis IJR vs VBR
The iShares Core S&P Small-Cap ETF has a Standard Deviation of 21.46 with a Alpha of 1.17 and a Treynor Ratio of 12.08. Its Sharpe Ratio is 0.62 while IJR’s Beta is 0.99. Furthermore, the fund has a Mean Return of 1.24 and a R-squared of 68.39.
The VBR has a R-squared of 71.71 with a Mean Return of 1.37 and a Standard Deviation of 20.83. Its Sharpe Ratio is 0.72 while VBR’s Alpha is 2.81. Furthermore, the fund has a Beta of 0.99 and a Treynor Ratio of 14.07.
Performance IJR vs VBR
Annual Returns IJR vs VBR
IJR had its best year in 2013 with an annual return of 41.32%. IJR’s worst year over the past decade yielded -16.19% and occurred in 2022. In most years the iShares Core S&P Small-Cap ETF provided moderate returns such as in 2016, 2021, and 2019 where annual returns amounted to 12.17%, 28.78%, and 31.35% respectively.
The year 2013 was the strongest year for VBR, returning 36.55% on an annual basis. The poorest year for VBR in the last ten years was 2018, with a yield of -12.26%. Most years the Vanguard Small-Cap Value ETF has given investors modest returns, such as in 2021, 2016, and 2019, when gains were 17.56%, 18.44%, and 27.32% respectively.
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Performance Comparison IJR vs VBR
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in IJR would have resulted in a final balance of $27,489.93. This is a profit of $17,489.93 over 10 years and amounts to a compound annual growth rate (CAGR) of 11.89%.
With a $10,000 investment in VBR, the end total would have been $27,017.56. This equates to a $17,017.56 profit over 10 years and a compound annual growth rate (CAGR) of 11.68%.
VBR’s CAGR is -0.22% Lower than that of IJR and as a result, would have yielded -$472.37 Less on a $10,000 investment. Thus, VBR Underperformed IJR by -$47.24 annually.