What does the expense ratio represent and how does it affect returns?

The expense ratio is an annual fee charged by fund managers for overseeing the investment portfolio, typically deducted from the fund's assets. SPSM features a 0.03% expense ratio, whereas VIOO carries a slightly higher rate of 0.07%. This 0.04 percentage point difference may appear minimal but compounds over time. Lower fees allow more money to remain invested, potentially enhancing long-term results. Investors seeking maximum efficiency often prioritise funds with the lowest expense ratios. However, investors should note that while fees are a measurable cost, they are one of many factors to consider when selecting investment vehicles for portfolio construction.

Are ETFs inherently risk-free because they track major indices?

No exchange-traded fund is inherently risk-free, even those tracking widely recognised indices. Market volatility, economic downturns and company-specific issues can impact values. Both SPSM and VIOO track small-cap equities, which historically exhibit higher volatility compared to large-cap stocks. The specific index each fund tracks is not available in the current data, so investors cannot verify the exact methodology. While diversification within the fund mitigates individual stock risk, it does not eliminate broader market risk. Investors should carefully assess their risk tolerance and investment timeline before allocating capital to any equity-based instrument regardless of issuer reputation.

How do SPSM and VIOO compare in terms of dividend yield?

SPSM provides a dividend yield of 1.52%, while VIOO offers a lower yield of 1.16%. Dividend yield represents the annual distributions paid relative to the share price. A higher yield may appeal to income-focused investors, but it does not guarantee superior total returns, as share price appreciation must also be considered. Both funds are Small Blend category ETFs, indicating exposure to companies with mixed growth and value characteristics. Yield differences can stem from portfolio composition or distribution policies. Investors should review the fund's distribution history to understand consistency, though past performance does not predict future payouts.

What does a small blend category mean for these ETFs?

Small blend indicates that the fund holds small-capitalisation companies with characteristics of both growth and value investing. This categorisation suggests diversification across different styles within the small-cap market segment. SPSM is a SPDR Portfolio S&P 600 Small Cap ETF, while VIOO is a Vanguard S&P Small-Cap 600 ETF. Both belong to the Small Blend category and target similar market segments, although exact index details are not available. Small-cap stocks often offer higher growth potential but come with increased volatility compared to larger established companies, making suitability dependent on individual risk profiles.

What level of concentration exists in the top holdings?

SPSM's top holdings range from 0.47% to 0.60% per position, indicating relatively low concentration in any single stock. Similarly, VIOO's largest holdings also cap at approximately 0.60%, with positions like CORT and GKOS. Low concentration means that the performance of the funds is not heavily dependent on a few individual companies, which can reduce single-stock risk. However, without knowing the total number of holdings or specific sector weights, which are not available for either fund, investors cannot fully assess the diversification level within the entire portfolio beyond the top ten positions.

How significant is the difference in assets under management?

SPSM maintains $16.0 billion in net assets, significantly larger than VIOO's $4.2 billion. Higher assets under management can indicate substantial market participation and potentially better liquidity for trading shares throughout the day. Liquidity affects how easily an investor can buy or sell shares at fair market prices. While VIOO is smaller in terms of asset base, it still represents a substantial pool of capital. The operational history differs as well, with VIOO established in September 2010 compared to SPSM's July 2013 inception date.

What should investors know about sector weightings for these funds?

Sector weighting data is currently not available for either SPSM or VIOO. Knowing sector weights is crucial for understanding where a fund's exposure lies within the economy, such as technology, healthcare or industrials. Without this transparency, investors must rely on general category descriptions like Small Blend. Sector rotation can impact performance, and different sectors react differently to economic cycles. While the top holdings provide some clues about industry exposure, the lack of comprehensive sector weightings limits the ability to determine if one fund is more exposed to specific industries than the other.

How do the issuers compare regarding reputational standing and cost philosophy?

SPSM is issued by SPDR, while VIOO is backed by Vanguard. Vanguard is widely recognised for its commitment to low-cost investment products and has an operational history with this specific fund since September 2010. SPSM offers a lower expense ratio of 0.03% compared to VIOO's 0.07%. Both issuers are major players in the exchange-traded fund market. When choosing between them, practical considerations often involve cost efficiency and brand trust. Investors must weigh whether the cost difference aligns with their portfolio objectives and the value they place on specific operational histories and corporate structures.

What does the overlap in holdings imply for portfolio construction?

SPSM and VIOO share seven of their top ten holdings: VSAT, MTCH, GKOS, PTGX, PAYC, RHP, and JXN. This overlap indicates a high degree of correlation in their core portfolios due to tracking similar small-cap indices. For portfolio construction, holding both ETFs may not provide significant diversification benefits beyond one small-cap blend fund because the underlying assets are very similar. Investors should consider this redundancy when evaluating their allocation to the small-cap segment, ensuring they are not unintentionally concentrating risk through overlapping instruments while potentially paying double the fees for similar exposure.

SPSM vs VIOO

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare SPSM and VIOO, two SPDR and Vanguard small-blend ETFs. This page outlines their fees, holdings, dividends, and how each fund tracks its market. SPSM carries a 0.03% expense ratio with 1.52% yield, while VIOO has a 0.07% fee and 1.16% yield. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SPSM

Metric

VIOO

0.03%

Expense Ratio

0.07%

1.52%

Dividend Yield

1.16%

$16.02B

Net Assets

$4.17B

611

Holdings

609

Jul 8, 2013

Inception Date

Sep 7, 2010

–

Index Tracked

–

Small Blend

Fund Category

Small Blend

SPSM costs about $4.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	SPSM	VIOO
VSATViasat, Inc.	0.60%	0.51%
MTCHMatch Group, Inc.	0.56%	0.53%
GKOSGlaukos Corporation	0.54%	0.59%
PTGXProtagonist Therapeutics, Inc.	0.53%	0.50%
PAYCPaycom Software, Inc.	0.49%	0.55%
RHPRyman Hospitality Properties, Inc.	0.47%	0.48%
JXNJackson Financial Inc.	0.47%	0.52%

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IJR vs VIOO

Compare IJR and VIOO on fees, dividends, holdings and tracking. IJR 0.06% and VIOO 0.07% expense ratios; assets $106.6bn vs $4.2bn; yields 1.23% vs 1.16%.

Investment Analysis

SPSM

Pros

Offers a low expense ratio of 0.03% for cost-sensitive investors.
Maintains substantial net assets of $16.0 billion, indicating high market participation.
Provides a relatively high dividend yield of 1.52% compared to peers.

Considerations

The specific index tracked is not available in the provided data.
Sector weightings are not available, limiting transparency on portfolio composition.
Top holdings show moderate concentration with weights ranging from 0.47% to 0.60%.

VIOO

Pros

Backed by Vanguard, a reputable issuer known for low-cost investment products.
Features a long operational history since inception in September 2010.
Provides diversified exposure to small-cap blend equities with net assets of $4.2 billion.

Considerations

Carries a higher expense ratio of 0.07% compared to lower-cost alternatives.
Offers a lower dividend yield of 1.16% relative to some competitors.
Exact index tracked and sector weights are not available in the data.

About SPSM and VIOO

SPSM (SPSM)

The SPDR Portfolio S&P 600 Small Cap ETF offers a cost-effective way to gain exposure to smaller U.S. companies. With an expense ratio of just 0.03%, it aims to track the performance of the S&P SmallCap 600 index, which includes 600 small-capitalisation stocks known for their potential growth. Launched in July 2013, this fund holds a diversified portfolio of over 600 companies, spread across various sectors to mitigate risk. Investors benefit from a modest dividend yield of approximately 1.52%, making it suitable for those looking to balance growth opportunities with some income generation. As with any investment, values can fluctuate, and past performance does not guarantee future results. This ETF is ideal for investors seeking broader exposure to the U.S. equity market beyond large-cap stocks, though careful consideration of personal financial circumstances and risk tolerance is essential.

VIOO (VIOO)

The Vanguard S&P Small-Cap 600 ETF aims to track the performance of U.S. small-cap companies, specifically those included in the S&P Small-Cap 600 index. With a low expense ratio of 0.07%, this fund offers an efficient way for investors to gain exposure to the small-cap segment of the market, which can complement a diversified portfolio. The fund holds 609 different holdings and manages approximately USD 4.17 billion in net assets. Since its inception in September 2010, it has provided a dividend yield of around 1.16%. While small-cap stocks can offer growth potential, they also tend to be more volatile than large-cap stocks. As with all investments, values can rise and fall, and returns are not guaranteed.

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SPSM vs VIOO

Fund Snapshot

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IJR vs VIOO

Investment Analysis

SPSM

Pros

Considerations

VIOO

Pros

Considerations

About SPSM and VIOO

Buy SPSM or VIOO in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What does the expense ratio represent and how does it affect returns?

Are ETFs inherently risk-free because they track major indices?

How do SPSM and VIOO compare in terms of dividend yield?

What does a small blend category mean for these ETFs?

What level of concentration exists in the top holdings?

How significant is the difference in assets under management?

What should investors know about sector weightings for these funds?

How do the issuers compare regarding reputational standing and cost philosophy?

What does the overlap in holdings imply for portfolio construction?

Fund Snapshot

About SPSM and VIOO

Discover More Comparisons

IJR vs VIOO