Which Small-Cap Value ETF Is the Better Buy: iShares’ IWN or State Street’s SLYV?
iShares Russell 2000 Value ETF (IWN 1.14%) and State Street SPDR S&P 600 Small Cap Value ETF (SLYV 1.30%) both provide exposure to small-cap value stocks, but they differ in cost, index construction, and historical performance.
Investors seeking exposure to the small-cap segment of the market often choose between these two popular funds. While both IWN and SLYV look for undervalued smaller companies, they follow different indexes, leading to variations in sector concentrations and risk-adjusted returns over time.
Snapshot (cost & size)
| Metric | SLYV | IWN |
|---|---|---|
| Issuer | SPDR | iShares |
| Share price | $108.06 (as of 2026-07-02) | $221.33 (as of 2026-07-02) |
| Expense ratio | 0.15% | 0.24% |
| 1-yr return (as of July 2, 2026) | 33.1% | 37.4% |
| Dividend yield | 1.8% | 1.4% |
| Beta | 0.99 | 1.01 |
| AUM | $4.9B | $14.4B |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
State Street SPDR S&P 600 Small Cap Value ETF is the more affordable option with a 0.15% expense ratio compared to 0.24% for the iShares fund. It also currently offers a higher payout, with a 1.8% trailing dividend yield.
Performance & risk comparison
| Metric | SLYV | IWN |
|---|---|---|
| Max drawdown (5 yr) | (28.7%) | (26.7%) |
| Growth of $1,000 over 5 years (total return) | $1,405 | $1,472 |
SPDR Series Trust – State Street SPDR S&P 600 Tm Small Cap Value ETF
Today’s Change
(-1.30%) $-1.39
Current Price
$105.77
Key Data Points
AUM
$4.9B
Dividend Yield
1.87%
Expense Ratio
0.15%
Top Holdings
MOH
1.29%
MTCH
0.95%
EMN
0.85%
What’s inside
The iShares Russell 2000 Value ETF focuses on Financial Services at 24%, Industrials at 12%, and Technology at 12%. Its top positions include Viasat (VSAT 3.55%) at 0.68%, Cytokinetics (CYTK 0.80%) at 0.66%, and UMB Financial (UMBF 2.69%) at 0.63%. This fund was launched in 2000. It has paid $3.19 per share over the trailing 12 months, which on its recent ~$221.33 share price works out to a 1.4% yield.
The State Street SPDR S&P 600 Small Cap Value ETF allocates 19% to Financial Services, 15% to Consumer Cyclical, and 13% to Technology. Top holdings among its 462 positions include Molina Healthcare (MOH 0.84%) at 1.31%, Match Group (MTCH 2.02%) at 0.96%, and Eastman Chemical (EMN 3.91%) at 0.82%. This fund was launched in 2000. It has paid $1.98 per share over the trailing 12 months, which on its recent ~$108.06 share price works out to a 1.8% yield.
For more guidance on ETF investing, check out the full guide at this link.
iShares Trust – iShares Russell 2000 Value ETF
Today’s Change
(-1.14%) $-2.50
Current Price
$217.68
Key Data Points
AUM
$14B
Dividend Yield
1.46%
Expense Ratio
0.24%
Top Holdings
CYTK
0.66%
UMBF
0.64%
VSAT
0.63%
What this means for investors
Small-cap value investing has a long history of rewarding patient investors, but not all small-cap value funds are built the same way. IWN and SLYV target the same corner of the market and have delivered strong recent returns, but their index construction reveals a key difference in the importance of profitability.
IWN tracks the Russell 2000 Value Index, which casts a wide net across more than 1,400 small-cap stocks without requiring profitability. That breadth delivers exposure to the full small-cap value universe, including companies that are losing money. SLYV follows the S&P SmallCap 600 Value Index, which requires companies to demonstrate profitability before admission. That quality filter has historically helped the S&P 600 avoid some of the worst small-cap blowups.
IWN has delivered stronger recent returns despite charging significantly more than SLYV. But past outperformance does not guarantee the same result going forward. SLYV’s lower cost and quality screen make it the more efficient long-term choice for most investors. IWN appeals to those who want the broadest possible small-cap value exposure and are comfortable paying more for it.
