SPSM vs VTWO
State Street SPDR Portfolio S&P 600 Small Cap ETF vs Vanguard Russell 2000 Index Fund ETF Shares
Last updated: 2026-04-08
State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) is an exchange-traded fund that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a very low expense ratio of 0.03%. The fund offers a moderate dividend yield of 1.52%. Launched in 2013, the fund has a 13-year track record.
Vanguard Russell 2000 Index Fund ETF Shares (VTWO) is an exchange-traded fund that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a low expense ratio of 0.06%. The fund offers a moderate dividend yield of 1.19%. Launched in 2010, the fund has a 16-year track record.
Quick Verdict
SPSM has a slightly lower expense ratio (0.03% vs 0.06%), saving about $60 per $10,000 over 10 years. Over the past year, VTWO has significantly outperformed with a 49.4% return vs 43.3%.
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
0 of top 9 holdings overlap (0% overlap in top holdings)
SPSM Top Holdings
| Name | Weight |
|---|---|
| Eastman Chemical CompanyEMN | 0.54% |
| Viavi Solutions Inc.VIAV | 0.53% |
| FormFactor, Inc.FORM | 0.52% |
| Argan, Inc.AGX | 0.51% |
| Primoris Services CorporationPRIM | 0.51% |
| Element Solutions IncESI | 0.50% |
| Semtech CorporationSMTC | 0.49% |
| ESCO Technologies Inc.ESE | 0.49% |
| Match Group, Inc.MTCH | 0.49% |
| Jackson Financial Inc.JXN | 0.48% |
VTWO Top Holdings
| Name | Weight |
|---|---|
| Bloom Energy CorporationBE | 1.09% |
| FabrinetFN | 0.63% |
| Coeur Mining, Inc.CDE | 0.56% |
| Credo Technology Group Holding LtdCRDO | 0.55% |
| Hecla Mining CompanyHL | 0.51% |
| EchoStar CorporationSATS | 0.50% |
| Nextpower Inc.NXT | 0.49% |
| Kratos Defense & Security Solutions, Inc.KTOS | 0.48% |
| IonQ, Inc.IONQ | 0.42% |
Which One Should You Choose?
Choose SPSM if...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Choose VTWO if...
recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.
Choose SPSM if...
you prioritize dividend income and want higher regular distributions from your portfolio.
Either works if...
you just need broad us small cap exposure. Both are solid options — pick whichever your brokerage offers commission-free.