

After spending much of the past several years trailing large-cap stocks, U.S. small caps have staged an impressive comeback in 2026.

Recent performance of small-cap index funds proves that mega-cap stocks don't drive the market by themselves.

The Vanguard Small-Cap ETF (VB) holds twice as many holdings as the State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM). Both funds maintain a matching expense ratio of 0.03%.

The Schwab U.S. Small-Cap ETF (SCHA) holds nearly three times as many positions as the State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM). Both ETFs carry identical 0.03% expense ratios, but SPSM has a higher dividend yield than SCHA.

The Russell 2000 has now lagged the broader market for many years. Small-cap stocks tend to perform well during periods of lower interest rates and economic expansion.

Explore how portfolio size and sector exposure differ between these two small-cap ETFs, each offering unique advantages for investors.

Portfolio size, sector mix, and underlying index set these two low-cost funds apart for investors seeking small-cap exposure.

Launched on July 8, 2013, the State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.