The Vanguard Small-Cap Value ETF (VBR) outperforms the iShares Morningstar Small-Cap Value ETF (ISCV) in terms of long-term returns and has a lower expense ratio, although ISCV offers a slightly higher dividend yield and a broader portfolio. Investors must consider these factors along with their individual investment goals when choosing between the two ETFs.
For your investment strategy, consider Vanguard Small-Cap Value ETF (VBR) as a strong candidate due to its lower expense ratio and higher total returns over a five-year period compared to iShares Morningstar Small-Cap Value ETF (ISCV). Despite ISCV's slightly higher dividend yield, VBR's significantly larger assets under management suggest better liquidity and tighter trading spreads, making it a more efficient choice for long-term growth with minimal cost.