- Whale Rock adds Apple, Microsoft; cuts stake in Nvidia as part of Q1 positioning changes
May 15, 2026
[Apple Store at 5th Ave in Manhattan, New York City]
ozgurdonmaz/iStock Unreleased via Getty Images
Whale Rock Capital Management added a new position in Apple (AAPL [https://seekingalpha.com/symbol/AAPL]), Microsoft (MSFT [https://seekingalpha.com/symbol/MSFT]), and Advanced Micro Devices (AMD [https://seekingalpha.com/symbol/AMD]), while reducing its holdings in Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) among notable Q1 moves, according to the investment adviser's latest 13F filing [https://www.sec.gov/Archives/edgar/data/1387322/000117266126002159/xslForm13F_X02/infotable.xml].
The Boston-based hedge fund founded by Alex Sacerdote reported the following notable portfolio positioning changes for Q1.
New stake acquisitions include:
* Apple (AAPL [https://seekingalpha.com/symbol/AAPL]) - Acquired 96,613 shares of common stock (currently valued at ~$29M)
* Western Digital (WDC [https://seekingalpha.com/symbol/WDC]) - Acquired 412,006 shares of common stock (currently valued at ~$199M)
* Advanced Micro Devices (AMD [https://seekingalpha.com/symbol/AMD]) - Acquired 69,211 shares of common stock (currently valued at ~$30M)
* Microsoft (MSFT [https://seekingalpha.com/symbol/MSFT]) - Acquired 53,850 shares of common stock (currently valued at ~$23M)
* MKS (MKSI [https://seekingalpha.com/symbol/MKSI]) - Acquired 1,306,724 shares of common stock (currently valued at ~$394M)
* Netflix (NFLX [https://seekingalpha.com/symbol/NFLX]) - Acquired 131,960 shares of common stock (currently valued at ~$11M)
* Viavi Solutions (VIAV [https://seekingalpha.com/symbol/VIAV]) - Acquired 3,473,152 shares of common stock (currently valued at ~$180M)
* Advanced Energy Industries (AEIS [https://seekingalpha.com/symbol/AEIS]) - Acquired 1,022,112 shares of common stock (currently valued at ~$336M)
Notable exits include:
* Hewlett Packard Enterprise (HPE [https://seekingalpha.com/symbol/HPE]) - Sold 1,908,017 shares of common stock
* HubSpot (HUBS [https://seekingalpha.com/symbol/HUBS]) - Sold 149,246 shares of common stock
* MercadoLibre (MELI [https://seekingalpha.com/symbol/MELI]) - Sold 98,175 shares of common stock
* Okta (OKTA [https://seekingalpha.com/symbol/OKTA]) - Sold 434,854 class A shares
* Semtech (SMTC [https://seekingalpha.com/symbol/SMTC]) - Sold 3,901,469 shares of common stock
* Wealthfront (WLTH [https://seekingalpha.com/symbol/WLTH]) - Sold 1,600,000 shares of common stock
Significant positioning changes include:
* Coherent (COHR [https://seekingalpha.com/symbol/COHR]) - Cut its holding by 119,709 to 975,048 shares of common stock
* Roblox (RBLX [https://seekingalpha.com/symbol/RBLX]) - Cut its holding by 572,929 shares to 3,532,184 class A shares
* Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) - Cut its holding by 160,567 to 1,041,128 shares of common stock
* SiTime (SITM [https://seekingalpha.com/symbol/SITM]) - Cut its holding by 121,606 to 576,933 shares of common stock
MORE ON RELATED TICKERS
* Ternus, His 3 Golden Apples, And A Ticking Two-Year Timer [https://seekingalpha.com/article/4905236-ternus-his-3-golden-apples-and-a-ticking-two-year-timer]
* Apple's Pop Is Great, But Valuation Remains A Limiter [https://seekingalpha.com/article/4905231-apple-pop-is-great-but-valuation-remains-a-limiter]
* Nvidia Earnings Could Reset The Entire AI Trade [https://seekingalpha.com/article/4905210-nvidia-earnings-could-reset-the-entire-ai-trade]
* SA analyst upgrades/downgrades: AAPL, GT, CORZ, PLUG [https://seekingalpha.com/news/4593999-sa-analyst-upgrades-downgrades-aapl-gt-corz-plug]
* Geopolitical uncertainty reigns, but the AI trade hasn't slowed down [https://seekingalpha.com/news/4593636-geopolitical-uncertainty-reigns-but-the-ai-trade-hasnt-slowed-down]
- Keysight Likely to Post Stronger Fiscal Q2 Growth on AI, Aerospace Demand, Morgan Stanley Says
May 15, 2026
Keysight Technologies (KEYS) could deliver stronger-than-expected fiscal Q2 growth as demand tied to
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- Why Viavi Solutions Stock is a Great Buy for Options Bulls
May 15, 2026 · schaeffersresearch.com
Subscribers to Schaeffer's Weekend Trader options recommendation service received this VIAV commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters.
- SanDisk And Micron Had Their Run – This New 'Photonics' ETF Has 15 Triple-Digit Gainers Inside
May 13, 2026
Memory was the first major AI bottleneck, as seen in explosive moves in Micron Technology Inc. (NASDAQ:MU) and SanDisk Corp.(NASDAQ:SNDK).
Photonics could be the next one, and a new exchange-traded fund just opened for business to play it.
The Corgi Lithography & Semiconductor Photonics ETF(CBOE: EUV) launched on May 6 as the first U.S.-listed fund built around the photonics theme.
It holds $18.4 million in assets so far, a fraction of the nearly $7 billion that flooded into the Roundhill Memory ETF (NASDAQ:DRAM) in roughly a month.
But the lukewarm reception is hiding a more interesting story.
Fifteen of EUV’s forty holdings are already up more than 100% year-to-date. Three are up more than 300%. One is up more than 650%.
Why Photonics, Why Now?
Photonics is the use of light to do work that electrons used to do.
In an AI data center, that means using lasers and optical fiber to move data between graphics processing units instead of copper wires, which are running into hard physical limits at the bandwidths Nvidia Corp.(NASDAQ:NVDA) clusters now demand.
Think of it as the plumbing for AI. When hyperscalers wire up hundreds of thousands of GPUs into a single training cluster, the bottleneck is no longer the chip. It is the cable between the chips.
That is why optical transceivers, photonic integrated circuits, co-packaged optics and pluggable optics have become the most crowded supply-constrained corner of the AI buildout.
Nvidia has poured billions into photonics suppliers to lock down capacity. Orders extend 18 months out at some firms, well above historical norms of 12 months.
According to estimates made by Corgi Funds, the issuer behind EUV, the silicon photonics market is projected to grow from $2.8 billion in 2025 to $10.7 billion by 2032 at a 21% compound annual growth rate, driven by AI data center demand.
15 Names Inside EUV ETF Are Already Up Triple Digits In 2026
Inside EUV’s basket sits a roster of stocks that have already gone vertical.
The top performers year-to-date among EUV’s components include AXT Inc.(NASDAQ:AXTI), up 651.7%, Applied Optoelectronics Inc.(NASDAQ:AAOI), up 440.1%, and Lightwave Logic Inc. (NASDAQ:LWLG), up 391.7%.
The list continues with:
Aehr Test Systems Inc.(NASDAQ:AEHR) at 379.1% Ultra Clean Holdings Inc. (NASDAQ:UCTT) at 227.6%, Viavi Solutions Inc. (NASDAQ:VIAV) at 199.7% Lumentum Holdings Inc.(NASDAQ:LITE) at 169.2% Ciena Corp. (NYSE:CIEN) at 146.8% FormFactor Inc.(NASDAQ:FORM) at 136.7% Corning Inc.(NYSE:GLW) at 126.8% nLIGHT Inc. (NASDAQ:LASR) at 123.4% POET Technologies Inc.(NASDAQ:POET) at 116.9% Veeco Instruments Inc. (NASDAQ:VECO) at 115.1% MACOM Technology Solutions Holdings Inc.(NASDAQ:MTSI) at 111.8% GlobalFoundries Inc. (NASDAQ:GFS) at 106.6%.
Story Continues
Fifteen names, all north of 100% in a little over four months.
Table: 15 Best-Performing EUV Holdings Year-To-Date
# COMPANY PRICE WEIGHT YTD RETURN 01 AXT Inc. $122.90 2.57% +651.68% 02 Applied Optoelectronics Inc. $188.28 2.16% +440.10% 03 Lightwave Logic Inc. $15.93 0.25% +391.67% 04 Aehr Test Systems Inc. $96.72 1.30% +379.05% 05 Ultra Clean Holdings Inc. $82.99 1.50% +227.64% 06 Viavi Solutions Inc. $53.40 2.25% +199.66% 07 Lumentum Holdings Inc. $992.37 4.61% +169.23% 08 Ciena Corp. $577.15 4.24% +146.78% 09 FormFactor Inc. $132.02 1.88% +136.68% 10 Corning Inc. $198.24 5.30% +126.83% 11 nLIGHT Inc. $83.81 1.74% +123.43% 12 POET Technologies Inc. $13.73 1.05% +116.90% 13 Veeco Instruments Inc. $61.46 1.61% +115.05% 14 MACOM Technology Solutions Inc. $362.76 3.20% +111.79% 15 GlobalFoundries Inc. $72.15 0.22% +106.62%
Data as of May 12, 2025
Read Also: Apple Crushed These Rivals In 2007 With The iPhone — Now Nvidia Is Helping Them Win Again
The Bottleneck Logic
So why is the light layer outrunning the chip layer?
There are at least three reasons.
First, demand is structural. Hyperscaler capital expenditure is on track to grow 67% year-over-year in 2026, according to Stifel analyst Ruben Roy.
Every dollar of GPU capex eventually requires interconnect, and most of it now requires optical interconnect.
Second, supply is constrained. Indium phosphide lasers, the building block of high-speed transceivers, sit in a vertically integrated supply chain dominated by a handful of names.
Coherent Corp. (NYSE:COHR) and Lumentum are the two firms with the in-house laser chip capacity needed to scale into 800G and 1.6T transceivers, the bandwidth tier hyperscalers are now ordering at scale.
Third, optical replaces copper at a fixed pace. Once a hyperscaler commits a cluster to optical interconnects, the parts ship for the life of that cluster. The revenue is recurring in a way GPUs are not.
The combination is driving year-over-year revenue growth that some companies have not posted since the dot-com fiber boom.
Lumentum just reported fiscal third-quarter revenue of $808.4 million, up 90.1% year-over-year, and guided fourth-quarter revenue to a range of $960 million to $1.01 billion. The midpoint would represent year-over-year growth of nearly 100%.
Why EUV Is Not A ‘Pure’ Photonics Play
ETF.com senior ETF analyst Sumit Roy has questioned whether EUV is really a photonics ETF at all.
Roy indicated that EUV’s top holdings tilt toward the semicap and foundry story rather than the data center interconnect bottleneck driving the photonics rally.
The fund’s top five holdings as of May 12 are Taiwan Semiconductor Manufacturing Co. Ltd.(NYSE:TSM) at 9.52%, ASML Holding NV (NASDAQ:ASML) at 7.97%, Corning at 5.19%, Lam Research Corp. (NASDAQ:LRCX) at 4.98% and Applied Materials Inc. (NASDAQ:AMAT) at 4.84%.
Together those names sit ahead of the photonics pure-plays in the ranking.
Of the top five, only Corning has Optical Communications as the clear AI photonics driver. The rest are general semicap names benefiting from AI but not from the photonics bottleneck specifically.
Taiwan Semiconductor benefits from leading-edge node demand. ASML benefits from foundry capex. Both are using light. Neither is the AI photonics pure-play that drove Lumentum, Coherent and Applied Optoelectronics to multi-bagger status this year.
“That’s a different cycle from the photonics bottleneck driving Lumentum, Coherent, and Applied Optoelectronics—stocks that sit further down the holdings list,” Roy said.
Roy also noted that TSM, ASML, LRCX, AMAT and KLA Corp.(NASDAQ:KLAC) together make up over a quarter of the VanEck Semiconductor ETF(NASDAQ:SMH), so EUV’s top holdings duplicate exposure investors can already get in broader semiconductor funds.
Three other photonics ETFs have been recently filed with stricter pure-play definitions, including the KraneShares Optical AI Infrastructure ETF, which would require at least 50% of revenue or gross profit from optical infrastructure across transceivers, photonic integrated circuits, fiber assemblies and optical networking systems.
None of the chip and semicap names that dominate EUV’s holdings would clear that test.
Read Also: Why Silver, Power And Chemicals Will Be The Next Micron Trade, Top AI Expert Says
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- Top Stock Picks for Week of May 11, 2026
May 12, 2026
Viavi Solutions Inc. (VIAV) is a leading provider of network test, monitoring and service enablement solutions to diverse sectors across the globe. Viavi reported strong third-quarter fiscal 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimate. Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period. It boasts a comprehensive product portfolio that offers end-to-end network visibility and analytics to help build, test, and optimize complex physical and virtual networks. It continues to benefit from expanding demand across data center, aerospace, and defense, and continued 5G and fiber network upgrades. Non-GAAP operating margin improved to 21% in the latest quarter, reflecting higher volumes and favorable product mix, particularly within Network and Service Enablement. Viavi Solutionscurrently has a Momentum Style Score of A. Shares of Viavi Solutions have increased 97.47% over the past quarter, and have gained 500.33% in the last year. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Viavi Solutions on your short list.
DaVita Inc. (DVA) is a leading provider of dialysis services in the U.S. to patients suffering from chronic kidney failure, also known as end-stage renal disease (ESRD).DaVita continues to strengthen its position as a leading U.S. dialysis provider. Its U.S. dialysis segment remains the primary earnings driver, supported by steady reimbursement and cost control. Management also highlighted continued momentum within the Integrated Kidney Care (IKC) during first-quarter 2026, with year-over-year improvements across key Comprehensive Kidney Care Contracting program (CKCC) performance metrics, including gross savings rates, quality scores and high-performing status. A strong solvency position is an added plus. As a top-performing medical stock, DaVita shares have spiked over 70% year to date. DaVita’s increased probability continues to attract investors with 40% EPS growth expected this year, and fiscal 2027 earnings are projected to pop another 22% per share. This dialysis services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.4% over the last 60 days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Story Continues
DaVita Inc. (DVA) : Free Stock Analysis Report
Viavi Solutions Inc. (VIAV) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- Should iShares Core S&P Small-Cap ETF (IJR) Be on Your Investing Radar?
May 12, 2026
If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the iShares Core S&P Small-Cap ETF (IJR), a passively managed exchange traded fund launched on May 22, 2000.
The fund is sponsored by Blackrock. It has amassed assets over $102.74 billion, making it the largest ETF attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.06%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.16%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector -- about 17.6% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Blk Csh Fnd Treasury Sl Agency (XTSLA) accounts for about 1.29% of total assets, followed by Viavi Solutions Inc (VIAV) and Formfactor Inc (FORM).
Performance and Risk
IJR seeks to match the performance of the S&P SmallCap 600 Index before fees and expenses. The S&P SmallCap 600 Index measures the performance of the small capitalization sector of the U.S. equity market.
The ETF has added about 14.45% so far this year and is up about 34.09% in the last one year (as of 05/12/2026). In the past 52-week period, it has traded between $103.99 and $138.93.
The ETF has a beta of 1.03 and standard deviation of 20.16% for the trailing three-year period, making it a medium risk choice in the space. With about 656 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares Core S&P Small-Cap ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IJR is an outstanding option for investors seeking exposure to the Style Box - Small Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
Story Continues
The Vanguard Small-Cap Index Fund ETF Shares (VB) and the iShares Russell 2000 ETF (IWM) track a similar index. While Vanguard Small-Cap Index Fund ETF Shares has $77.34 billion in assets, iShares Russell 2000 ETF has $79.55 billion. VB has an expense ratio of 0.03% and IWM charges 0.19%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports
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- Viavi Solutions Inc (VIAV) Stock Up 7.3% but GF Value Says Overvalued -- GF Score: 61/100
May 11, 2026 · gurufocus.com
On May 11, 2026, Viavi Solutions Inc (VIAV) shares rose 7.3% to a current price of $54.93. The stock has seen significant price fluctuations over the past year,
- Small-Cap ETF Showdown: Schwab's SCHA vs. iShares' IJR
May 11, 2026
The Schwab U.S. Small-Cap ETF(NYSEMKT:SCHA) offers lower costs and broader market coverage, while the iShares Core S&P Small-Cap ETF(NYSEMKT:IJR) provides a more concentrated portfolio with higher liquidity.
Both funds serve as low-cost gateways to the smallest corners of the domestic equity market. While they share similar sector exposures, the primary difference lies in their index strategies.
The Schwab fund casts a wide net across nearly the entire small-cap universe, while the iShares fund focuses on a more selective set of companies that must meet S&P's specific financial viability standards. This distinction affects how each portfolio reacts to market cycles.
Snapshot (cost & size)
Metric SCHA IJR Issuer Schwab iShares Expense ratio 0.04% 0.06% 1-yr return (as of May 7, 2026) 44.0% 37.1% Dividend yield 1.0% 1.2% Beta 1.10 1.04 AUM $22.4 billion $102.9 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Schwab fund remains one of the most affordable options in the category with a 0.04% expense ratio, which minimizes the drag on long-term returns. Although the iShares fund costs slightly more at 0.06%, it may appeal to income-focused investors because it currently provides a higher trailing-12-month dividend payout compared to its Schwab counterpart.
Performance & risk comparison
Metric SCHA IJR Max drawdown (5 yr) (30.8%) (28.0%) Growth of $1,000 over 5 years (total return) $1,380 $1,320
What's inside
The iShares Core S&P Small-Cap ETF tracks a more selective index of 640 holdings, focusing on companies that must meet specific market capitalization and profitability criteria. This focus on "quality" in the small-cap space is reflected in its sector exposure, which is balanced between financial services at 16%, industrials at 16%, and technology at 15%. Its largest positions include Viavi Solutions(NASDAQ:VIAV) at 0.74%, Sanmina(NASDAQ:SANM) at 0.71%, and Formfactor(NASDAQ:FORM) at 0.66%. The fund was launched in 2000 and has paid $1.60 per share in dividends over the trailing 12 months.
In contrast, the Schwab U.S. Small-Cap ETF offers much broader diversification through 1,721 holdings, capturing a wider slice of the total market. Its sector tilts favor technology at 18%, followed by financial services and industrials at 16% each. Its top holdings include Sandisk(NASDAQ:SNDK) at 4.08%, Lumentum(NASDAQ:LITE) at 1.53%, and Revolution Medicines(NASDAQ:RVMD) at 0.64%. The Schwab fund was launched in 2009 and has a trailing-12-month dividend of $0.34 per share. By including a larger number of holdings, it provides exposure to more micro-cap names that the more selective iShares fund might exclude.
Story Continues
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Investing in small-cap stocks is a great way to add diversification to a portfolio and deliver exposure to high-growth companies. Both the iShares Core S&P Small-Cap ETF (IJR) and Schwab U.S. Small-Cap ETF (SCHA) seek to help investors with this. Choosing between the pair comes down to a few factors.
SCHA’s much broader set of holdings, totaling nearly 2,000 equities, is more representative of the small-cap portion of the U.S. stock market. This helped it deliver a greater one-year return. Its share price is also far lower than IJR, with a 2-for-1 stock split performed in 2024 contributing to this.
SCHA’s downsides are its smaller AUM, which means reduced liquidity compared to IJR, and because small-cap stocks are more volatile than larger companies, the ETF’s greater slice of these businesses led to a larger max drawdown and beta. SCHA is better suited for investors who want a fund that’s more representative of the small-cap universe, and are willing to accept the higher risk.
IJR limits its holdings because it screens stocks based on quality filters, such as positive earnings. This lowers the investor risk inherent in small-cap companies, although it means a less diversified portfolio compared to SCHA. IJR also boasts a much bigger AUM, which can appeal to active traders. It is the better ETF for investors concerned with risk and volatility, and are willing to pay a slightly higher expense ratio in exchange for this greater stability.
Should you buy stock in iShares Core S&P Small-Cap ETF right now?
Before you buy stock in iShares Core S&P Small-Cap ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares Core S&P Small-Cap ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 11, 2026.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lumentum, Viavi Solutions, and iShares Core S&P Small-Cap ETF. The Motley Fool has a disclosure policy.
Small-Cap ETF Showdown: Schwab's SCHA vs. iShares' IJR was originally published by The Motley Fool
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- SPSM and IJR Own Identical Portfolios. Here's Why the Choice Still Matters.
May 11, 2026
The State Street SPDR Portfolio S&P 600 Small Cap ETF(NYSEMKT:SPSM) offers a lower-cost entry to small caps, while the iShares Core S&P Small-Cap ETF(NYSEMKT:IJR) provides superior liquidity and historical longevity.
Both funds target the S&P SmallCap 600 Index, providing exposure to profitable small-cap U.S. companies. While they share the same underlying index and risk profiles, investors typically choose between them based on subtle differences in expense ratios, trading volume, and assets under management (AUM).
Snapshot (cost & size)
Metric SPSM IJR Issuer SPDR iShares Expense ratio 0.03% 0.06% 1-yr return (as of May 7, 2026) 37.30% 37.10% Dividend yield 1.40% 1.20% Beta 1.04 1.04 AUM $15.6 billion $102.9 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The State Street fund is more affordable with a 0.03% expense ratio, saving investors three dollars per $10,000 invested annually compared to the iShares fund. It also currently offers a slightly higher distribution yield of 1.40%.
Performance & risk comparison
Metric SPSM IJR Max drawdown (5 yr) (27.90%) (28.00%) Growth of $1,000 over 5 years (total return) $1,324 $1,320
What's inside
The iShares Core S&P Small-Cap ETF(NYSEMKT:IJR) holds 640 stocks and was launched in 2000. Its largest positions include Viavi Solutions(NASDAQ:VIAV) at 0.74%, Sanmina(NASDAQ:SANM) at 0.71%, and FormFactor(NASDAQ:FORM) at 0.66%. The fund focuses on financial services (16.00%), industrials (16.00%), and technology (15.00%). It has a trailing-12-month dividend of $1.60 per share.
The State Street SPDR Portfolio S&P 600 Small Cap ETF(NYSEMKT:SPSM) holds 606 stocks and was launched in 2013. Its top holdings include FormFactor(NASDAQ:FORM) at 0.61%, Viavi Solutions(NASDAQ:VIAV) at 0.58%, and Semtech(NASDAQ:SMTC) at 0.58%. It has a similar sector profile led by industrials (17.00%) and financial services (17.00%), and paid $0.77 per share over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Small-cap stocks — companies too small for the S&P 500 — have historically outperformed large caps over long time horizons, but with a catch: The small-cap universe is full of speculative, unprofitable companies that can drag returns down significantly. Both SPSM and IJR sidestep that problem by tracking the S&P SmallCap 600, an index that requires profitability before admission. That shared quality screen is what sets them apart from broader small-cap funds.
Story Continues
In fact, these two funds are so similar that the choice between them is almost entirely about fund mechanics rather than strategy. Both hold the same roughly 600 companies in the same proportions. But SPSM charges half of what IJR does. That’s a difference that amounts to a few dollars annually per $10,000 invested, but one that compounds quietly over decades.
What IJR offers in return is scale and history. With roughly six times the assets and a track record stretching back to 2000, IJR is the more established vehicle and carries deeper liquidity. For buy-and-hold investors, SPSM's lower cost is the stronger argument. Those who value a longer track record and greater fund depth will find IJR worth the modest premium.
Should you buy stock in iShares Core S&P Small-Cap ETF right now?
Before you buy stock in iShares Core S&P Small-Cap ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares Core S&P Small-Cap ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 11, 2026.
Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Viavi Solutions and iShares Core S&P Small-Cap ETF. The Motley Fool has a disclosure policy.
SPSM and IJR Own Identical Portfolios. Here's Why the Choice Still Matters. was originally published by The Motley Fool
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- Small-Cap ETF Showdown: Schwab's SCHA vs. iShares' IJR
May 11, 2026 · fool.com
Expense ratios, diversification, and sector tilts set these two small-cap ETFs apart. Explore how their strategies impact risk and long-term performance.
