The Vanguard Small-Cap Value ETF (NYSEMKT:VBR) provides low-cost exposure to small-cap value stocks, while the iShares S&P Mid-Cap 400 Value ETF (NYSEMKT:IJJ) offers a similar value focus but targets the mid-cap segment of the market.
Both funds use passive, index-tracking strategies to find companies trading at a discount relative to their fundamentals. The choice between them often comes down to an investor's preference for the relative stability of mid-cap stocks versus the greater diversification -- and greater volatility -- that comes with small-caps.
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