Dividend comparison
VTWO vs SPSM: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard Russell 2000 ETF and State Street SPDR Portfolio S&P 600 Small Cap ETF, side by side. Updated October 21, 2026.
VTWO vs SPSM: key differences
The short answer, from the latest data on this page.
- Fees. SPSM is cheaper at 0.03% a year versus 0.06% for VTWO. On $10,000 that is $3 a year less in fees.
- Income. SPSM pays more income, yielding 1.54% over the last twelve months versus 1.22% for VTWO. That is about $32 more a year on $10,000. VTWO pays annual, SPSM pays quarterly.
- Performance. Over the last 5 years, SPSM returned 31.7% versus 29.6% for VTWO, with dividends reinvested. $10,000 would have grown to $13,165 in SPSM and $12,963 in VTWO.
- Risk. VTWO has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -31.9%, against -27.9% for SPSM.
- Diversification. VTWO holds 1,969 positions and SPSM holds 607. The ten largest positions make up 3.3% of VTWO and 5.3% of SPSM.
- Overlap. At least 8% of the two portfolios overlap by weight, across 37 shared holdings. They mostly own different companies, so they can complement each other.
- Dividend growth. VTWO grew its yearly payout 5.1% a year over the last 4 years, versus 4.8% for SPSM.
Bottom line: VTWO fits better if you care most about broader diversification. SPSM fits better if you care most about lower fees, more income today, stronger 5-year returns and smaller drawdowns.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | VTWO Vanguard Russell 2000 ETF | SPSM State Street SPDR Portfolio S&P 600 Small Cap ETF |
|---|---|---|
| Dividend yield (TTM) | 1.22% | 1.54% |
| Dividend / share (TTM) | $1.36 | $0.82 |
| Payout frequency | Annual | Quarterly |
| Last dividend | $0.3911 on Sep 25, 2026 | $0.2202 on Sep 23, 2026 |
| Ex-dividend date | Sep 23, 2026 | Sep 21, 2026 |
| Dividend growth (CAGR) | 5.1% over 4 yrs | 4.8% over 4 yrs |
| Price | $111.40 | $53.53 |
| Dividend growth streak | 1 year | — |
| Beta | 1.14 | 1.04 |
| Max drawdown (5Y) | -31.9% | -27.9% |
| Market cap | $17.30B | $15.52B |
| Exchange | NASDAQ | AMEX |
| Expense ratio | 0.06% | 0.03% |
| Assets under management | $17.30B | $15.53B |
| Number of holdings | 1969 | 607 |
| Top 10 concentration | 3.3% | 5.3% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
VTWO
$10.15/mo
$122 /yr at 1.22% yield
SPSM
$12.80/mo
$154 /yr at 1.54% yield
Dividend history
Total dividends paid per share in each calendar year. VTWO pays annual; SPSM pays quarterly.
| Year | VTWO | SPSM |
|---|---|---|
| 2025 | $1.2429 | $0.7571 |
| 2024 | $1.0821 | $0.8294 |
| 2023 | $1.1739 | $0.6797 |
| 2022 | $1.0413 | $0.5088 |
| 2021 | $1.0173 | $0.6276 |
Strategy: Small and mid cap
Funds that hold companies below the large-cap tier, where there is more room for growth and less coverage by analysts. Small-cap indexes differ meaningfully: some screen for profitability, some include every listed company, and value-tilted funds lean toward the cheapest names. Those rules drive more of the difference between funds than fees do.
Smaller companies are more sensitive to recessions and borrowing costs, so drawdowns run deeper than in large-cap funds.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $12,963 in VTWO and $13,165 in SPSM.
| Period | VTWO | SPSM |
|---|---|---|
| 1 month | -2.94% | -0.89% |
| 3 months | -5.41% | -4.73% |
| Year to date | 12.89% | 15.54% |
| 1 year | 12.46% | 16.80% |
| 3 years | 71.49% | 60.41% |
| 5 years | 29.63% | 31.65% |
- VTWO
- SPSM
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- VTWO
- SPSM
VTWO vs SPSM holdings overlap
At least 8% overlap by weight, with 37 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | VTWO weight | SPSM weight |
|---|---|---|
| GKOSGlaukos Corp | 0.31% | 0.57% |
| VSATViasat Inc | 0.30% | 0.47% |
| PTGXProtagonist Therapeutics Inc | 0.28% | 0.49% |
| JXNJackson Financial Inc | 0.28% | 0.48% |
| EATBrinker International Inc | 0.28% | 0.55% |
| SMSM Energy Co | 0.27% | 0.55% |
| TGTXTG Therapeutics Inc | 0.27% | 0.45% |
| RHPRyman Hospitality Properties Inc | 0.27% | 0.50% |
| MXLMaxLinear Inc | 0.26% | 0.35% |
| ACAArcosa Inc | 0.24% | 0.42% |
Quick verdict
VTWO fits better if you care most about broader diversification. SPSM fits better if you care most about lower fees, more income today, stronger 5-year returns and smaller drawdowns. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
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Frequently asked questions
Is VTWO or SPSM better for dividend income?
It depends on your goals. VTWO currently yields 1.22% Trailing Twelve Months (TTM) while SPSM yields 1.54%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between VTWO and SPSM?
Vanguard Russell 2000 ETF (VTWO) is an ETF listed on NASDAQ. State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VTWO or SPSM?
SPSM has the lower expense ratio. VTWO charges 0.06% a year and SPSM charges 0.03%, a difference of $3 a year on a $10,000 investment.
Which has performed better, VTWO or SPSM?
Over the last 5 years, SPSM has the higher total return with dividends reinvested: VTWO returned 29.6% and SPSM returned 31.7%. Past performance does not predict future returns.
Which is riskier, VTWO or SPSM?
Measured by the worst peak-to-trough decline over the last five years, VTWO has been riskier: VTWO fell as much as 31.9% and SPSM as much as 27.9%. Their betas are 1.14 and 1.04.
How much do VTWO and SPSM overlap?
At least 8% of the two portfolios overlap by weight, across 37 shared holdings. The largest shared positions are GKOS, VSAT, PTGX. Holding both still adds meaningful diversification.
How often do VTWO and SPSM pay dividends?
VTWO pays annual and SPSM pays quarterly.
How much income does $10,000 in VTWO vs SPSM generate?
At current TTM yields, $10,000 in VTWO would generate roughly $10.15 per month ($122 annually). The same amount in SPSM would produce about $12.80 per month ($154 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VTWO and SPSM?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare VTWO vs SPSM with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VTWO and SPSM fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.