Skip to main content
This section contains press releases and other materials from third parties (including paid content). The Globe and Mail has not reviewed this content. Please see disclaimer.

Better Value ETF: iShares' IJJ vs. State Street's SLYV

Motley Fool - Sun Feb 8, 2:19PM CST

Key Points

The State Street SPDR S&P 600 Small Cap Value ETF(NYSEMKT:SLYV) and iShares SP Mid-Cap 400 Value ETF(NYSEMKT:IJJ) aim to capture the performance of U.S. value stocks, but SLYV emphasizes smaller companies and IJJ focuses on the mid-cap segment, leading to notable differences in returns, risk, and sector mix.

Their distinct size focuses can make a material difference for investors. This comparison highlights how the two ETFs stack up on costs, recent performance, risk, liquidity, and what is inside each portfolio.

Snapshot (cost & size)

MetricSLYVIJJ
IssuerSPDRiShares
Expense ratio0.15%0.18%
1-yr return (as of 2026-02-04)13.3%9.8%
Dividend yield1.9%1.7%
AUM$4.5 billion$8.5 billion

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.

SLYV is slightly more affordable, with a lower expense ratio and a modestly higher dividend yield compared to IJJ, which may appeal to cost-conscious or income-focused investors.

Performance & risk comparison

MetricSLYVIJJ
Max drawdown (5 y)-28.68%-22.68%
Growth of $1,000 over 5 years$1,357$1,528

What's inside

IJJ tracks a mid-cap value index and holds 305 stocks, with a portfolio age of over 25 years. Its sector allocation leans heavily toward financial services (25%), followed by industrials (17%) and consumer cyclicals (14%). Top holdings include U.S. Foods Holding(NYSE:USFD) at 1.19%, Reliance Steel & Aluminum(NYSE:RS) at 1.07%, and Alcoa(NYSE:AA) at 0.97%, suggesting broad diversification. There are no notable quirks or additional overlays.

SLYV, in contrast, draws from the small-cap value universe and spreads its exposure across 460 holdings. Its sector mix is more evenly distributed, with financial services (21%), consumer cyclicals (18%), and industrials (14%) as key areas. Top positions include Eastman Chemical(NYSE:EMN), LKQ Corp.(NASDAQ:LKQ), and Jackson Financial(NYSE:JXN), each under 1.2% of assets, echoing a similar diversification approach but at a smaller company scale.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

Both the State Street SPDR S&P 600 Small Cap Value ETF (SLYV) and the iShares SP Mid-Cap 400 Value ETF (IJJ) seek to deliver strong returns by targeting undervalued stocks, and provide exposure to smaller companies, helping to round out an investment portfolio. The choice between the two comes down primarily to an investor’s appetite for risk.

SLYV offers greater growth potential through its focus on small-cap stocks, as demonstrated by its higher one-year return compared to IJJ. That said, the fund entails a larger degree of volatility. This can be seen in its higher max drawdown versus IJJ, and its higher beta of 1.22 compared to IJJ’s 1.12. However, it offers a lower expense ratio and better dividend yield.

IJJ is for investors who like the greater stability of mid-cap stocks. This segment historically delivers a balance between the growth potential of small caps and the lower volatility of large caps. Its larger assets under management compared to SLYV provides greater liquidity as well.

Should you buy stock in SPDR Series Trust - State Street SPDR S&P 600 Tm Small Cap Value ETF right now?

Before you buy stock in SPDR Series Trust - State Street SPDR S&P 600 Tm Small Cap Value ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SPDR Series Trust - State Street SPDR S&P 600 Tm Small Cap Value ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,299!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,136,601!*

Now, it’s worth noting Stock Advisor’s total average return is 914% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of February 8, 2026.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool recommends LKQ. The Motley Fool has a disclosure policy.

This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.