Vanguard (VB) vs. State Street (SPSM) in a Small-Cap ETF Showdown

Vanguard Morningstar Small-Cap ETF (VB) and State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) are compared as low-cost small-cap investment options. Both charge identical 0.03% expense ratios, but VB offers broader diversification with 1,357 holdings while SPSM focuses on 607 concentrated picks. SPSM delivered higher 1-year returns (17.3% vs 14.3%) and a higher dividend yield (1.56% vs 1.28%), with the analyst slightly favoring SPSM for its profitability filter and stronger dividend growth.