Generated August 8, 2026.
Overview
IJR and VB are both broad-market small-cap ETFs tracking different U.S. small-cap indexes. IJR follows the S&P SmallCap 600 Index, while VB tracks the CRSP US Small Cap Index. The key difference is their constituent selection: the S&P 600 is a fixed 600-stock list, while the CRSP small-cap universe is larger and more dynamic, making VB slightly broader in scope and potentially more inclusive of the smallest tradable stocks.
How they differ
The biggest difference is index construction. IJR's S&P SmallCap 600 is a fixed-count index that excludes smaller stocks below its floor, while VB's CRSP index is based on market-cap breakpoints and captures a wider range of small-cap names. That affects portfolio turnover and which exact small-cap exposures you get.
Both charge minimal fees—VB edges IJR at 0.05% versus 0.06% annually—and both distribute quarterly. Yields are nearly identical at 1.17% for VB and 1.16% for IJR. IJR is the larger fund by AUM ($113B vs. $82.5B) and has a slightly longer track record, having launched in 2000 versus VB's 2004 inception. Beta is similarly tight: IJR at 1.08 and VB at 1.10, both tracking small-cap market movements closely.
Who each is best for
IJR: Fits investors who prefer the simplicity and predictability of a fixed 600-stock index and want the option of the largest small-cap ETF by assets under management.
VB: Fits investors who want exposure to a broader definition of the small-cap universe, including stocks below the S&P 600's floor, and slightly favor the lowest expense ratio available in this category.
Key risks to know
- Index methodology overlap. Both indexes capture U.S. small-caps, but their constituent lists differ materially. An investor holding both would have meaningful overlap in holdings; verify the specific names to understand true diversification benefit.
- Small-cap liquidity and volatility. Both funds hold stocks with lower trading volumes and market caps than large-cap peers, making them more susceptible to bid-ask spreads and price swings during market stress.
- Beta and factor tilts. IJR and VB exhibit betas above 1.0 (1.08 and 1.10 respectively), meaning they amplify broad market moves. Small-cap indexes also carry embedded tilts toward value, profitability, and lower volatility factors relative to the overall market.
- Sector and style drift. The S&P 600 and CRSP indexes rebalance differently, which can lead to divergent sector weightings and growth/value tilts over time, creating periods of outperformance and underperformance between the two.
- Turnover and tax drag. The CRSP index has higher turnover due to its market-cap weighting methodology, which may create more taxable gains in VB; IJR's fixed 600-stock structure typically produces lower turnover.
Bottom line
If you prioritize the largest pool of assets and a locked, predictable constituent list, IJR offers a straightforward choice; if you want marginally lower costs and exposure to a broader small-cap universe, VB's CRSP methodology stands out. Either way, you're paying single-digit basis points for core small-cap exposure—the difference in fees and yields won't drive your decision. Verify the holdings overlap and consider your tax situation, since turnover differences may matter in taxable accounts. Past performance of either index does not predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
