Comparing Small-Cap Value ETFs: iShares IWN vs. State Street SLYV for Investors

Key Takeaways

• State Street’s SPDR S&P 600 Small Cap Value ETF offers a lower expense ratio and higher trailing dividend yield compared to iShares’ Russell 2000 Value ETF.
• The iShares ETF manages $14.4 billion in assets, significantly larger than State Street’s $4.9 billion fund.
• Over the past 12 months, the iShares Russell 2000 Value ETF outperformed the State Street alternative.

iShares Russell 2000 Value ETF (NYSEMKT:IWN) and State Street SPDR S&P 600 Small Cap Value ETF (NYSEMKT:SLYV) both target small-cap value stocks but differ in cost structures and index methodologies, resulting in distinct sector allocations and performance outcomes.

Investors seeking exposure to small-cap value equities often evaluate these two ETFs based on cost efficiency, index composition, and historical returns. While both funds aim to capture undervalued small-cap companies, their divergent indexing strategies lead to variations in risk profiles and sector emphasis.

Snapshot: Cost and Scale

MetricSLYVIWNIssuerSPDRiSharesShare price$108.06 (as of 2026-07-02)$221.33 (as of 2026-07-02)Expense ratio0.15%0.24%1-yr return (as of July 2, 2026)33.1%37.4%Dividend yield1.8%1.4%Beta0.991.01AUM$4.9B$14.4B

Beta measures price volatility relative to the S&P 500; beta is derived from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield reflects the trailing-12-month distribution yield.

State Street’s SLYV presents a more cost-effective option with a 0.15% expense ratio versus iShares’ 0.24%. The ETF also provides a higher income component, with a 1.8% trailing dividend yield, compared to IWN’s 1.4%.

Performance and Risk Profile

MetricSLYVIWNMax drawdown (5 yr)(28.7%)(26.7%)Growth of $1,000 over 5 years (total return)$1,405$1,472

Holdings Analysis

The iShares Russell 2000 Value ETF emphasizes Financial Services (24%), Industrials (12%), and Technology (12%). Top holdings include Viasat (NASDAQ:VSAT) (0.68%), Cytokinetics (NASDAQ:CYTK) (0.66%), and UMB Financial (NASDAQ:UMBF) (0.63%). Launched in 2000, the fund has distributed $3.19 per share annually, yielding 1.4% at its current $221.33 price point.

State Street’s SLYV allocates 19% to Financial Services, 15% to Consumer Cyclical sectors, and 13% to Technology. Its largest holdings are Molina Healthcare (NYSE:MOH) (1.31%), Match Group (NASDAQ:MTCH) (0.96%), and Eastman Chemical (NYSE:EMN) (0.82%). Established in 2000, the ETF has paid $1.98 per share over the trailing 12 months, yielding 1.8% at its $108.06 price level.

Implications for Investors

Small-cap value strategies have historically provided attractive long-term returns for patient investors, though outcomes vary based on methodology. IWN and SLYV both target undervalued small-cap firms but use distinct indices. IWN tracks the Russell 2000 Value Index, which does not require profitability, broadening exposure to smaller companies. SLYV follows the S&P SmallCap 600 Value Index, which filters for profitability, potentially reducing risk from distressed companies.

While iShares’ ETF has delivered superior recent returns, its higher fees and lack of profitability screening may not align with all investor objectives. State Street’s fund offers better cost efficiency and a quality-focused approach, making it a compelling choice for long-term investors prioritizing sustainability. IWN, however, suits those seeking maximum market coverage without restrictive eligibility criteria, albeit at a premium cost.

The views expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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