Vanguard Small-Cap Value ETF Outshines State Street on Fees But is It the Better Buy?

Small-cap value stocks are outperforming major indexes year-to-date and over the past 12 months. The Vanguard Small-Cap Value ETF (VBR) offers lower fees (0.05%) but the State Street SPDR S&P 600 Small Cap Value ETF (SLYV) has delivered superior recent performance with 20.4% YTD returns versus 15.5% for Vanguard. The author recommends State Street's offering for its quality earnings screen and better recent performance, though both ETFs could be held together for diversification.