SMIZ vs VFQY
Zacks Small/Mid Cap ETF vs Vanguard US Quality Factor ETF
Which is better, SMIZ or VFQY?
Each has led over a different period.
VFQY has a lower expense ratio. SMIZ led over 3Y and the full window, VFQY over 1Y. The two have moved almost in lockstep, correlation 0.91. SMIZ is less concentrated, with 11.7% of the fund in its ten largest positions against 13.1%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SMIZ | VFQY |
|---|---|---|
| Expense Ratio | 0.55% | 0.13%Best |
| AUM | $280M | $493M |
| Dividend Yield | 0.56% | 1.04% |
| Holdings | 402 | 452 |
| YTD Return | +9.29% | +12.43%Best |
| 1Y Return | +10.75% | +15.57%Best |
| 3Y Return (annualized) | +18.63%Best | +16.23% |
| 5Y Return (annualized) | - | +8.77% |
| Volatility (annualized) | 17.2% | 13.1%Best |
| Max Drawdown | -25.0% | -20.7%Best |
| $10,000 over 3 years | $16,949Best | $16,103 |
| Top 10 Weight | 11.7%Best | 13.1% |
| Fund Family | Zacks | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Mid Cap Blend |
| Inception | Oct 3, 2023 | Feb 13, 2018 |
Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Oct 3, 2023 to Oct 14, 2026 (3 years).
SMIZ vs VFQY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3 years both funds cover.
SMIZ vs VFQY Performance
Zacks Small/Mid Cap ETF (SMIZ) is an ETF from Zacks and Vanguard US Quality Factor ETF (VFQY) is an ETF from Vanguard (US). Over the past year SMIZ returned +10.75% while VFQY returned +15.57%. Year to date, SMIZ is up 9.29% versus a gain of 12.43% for VFQY.
Over three years, SMIZ compounded at +18.63% per year against +16.23% for VFQY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMIZ has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 13.1% for VFQY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -25.0% for SMIZ and -20.7% for VFQY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SMIZ charges 0.55% per year while VFQY charges 0.13%. On a $10,000 position that is $55 vs $13 annually, a gap of $42 per year that compounds over a long holding period. On income, SMIZ currently yields 0.56% against 1.04% for VFQY.
Holdings Overlap
32.6% of SMIZ's money is in holdings VFQY also owns. 17.6% of VFQY's money is in holdings SMIZ also owns.
The two portfolios partly overlap.
66 positions in common, counted across the 199 positions we hold weights for in SMIZ and 469 in VFQY, against full books of 402 and 452.
What only one of them owns
Our book lists 389 positions for VFQY that do not appear in our book for SMIZ (80.5% of the fund), and 116 for SMIZ that do not appear in VFQY (57.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SMIZ | Weight in VFQY | Difference |
|---|---|---|---|
| FTNTFortinet Inc | 0.55% | 1.49% | 0.94% |
| ANETArista Networks Inc. | 1.16% | 0.66% | 0.50% |
| EMEEmcor Group Inc | 1.59% | 0.18% | 1.41% |
| WDCWestern Digital Corp. | 0.59% | 1.17% | 0.58% |
| VLOValero Energy | 0.49% | 0.93% | 0.44% |
| FIXComfort Systems USA Inc. | 1.11% | 0.29% | 0.82% |
| VRTVertiv Holdings Co | 0.39% | 0.94% | 0.55% |
| NTRSNorthern Trust Corp. | 0.96% | 0.34% | 0.62% |
| EXPEExpedia Inc | 0.84% | 0.38% | 0.46% |
| ALNTAllient Inc | 1.15% | 0.04% | 1.11% |
32.6% of SMIZ is already inside VFQY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, SMIZ or VFQY?
SMIZ has an expense ratio of 0.55% while VFQY charges 0.13%. VFQY is the cheaper option, by $42 a year on a $10,000 investment.
Which performed better, SMIZ or VFQY?
Over the past year SMIZ returned +10.75% vs +15.57% for VFQY, so VFQY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SMIZ or VFQY?
SMIZ has been the more volatile fund at 17.2% annualized versus 13.1% for VFQY. Worst drawdown: SMIZ -25.0% vs VFQY -20.7%.
Should I hold both SMIZ and VFQY?
SMIZ and VFQY have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between SMIZ and VFQY?
32.6% of SMIZ's money is in holdings VFQY also owns. 17.6% of VFQY's is in holdings SMIZ also owns. They hold 66 positions in common, counted across the 199 positions we hold weights for in SMIZ and 469 in VFQY.
Which pays a higher dividend, SMIZ or VFQY?
SMIZ yields 0.56% while VFQY yields 1.04%, so VFQY currently pays the higher dividend yield.
Is VFQY better than SMIZ?
VFQY has a lower expense ratio. SMIZ led over 3Y and the full window, VFQY over 1Y. The two have moved almost in lockstep, correlation 0.91. SMIZ is less concentrated, with 11.7% of the fund in its ten largest positions against 13.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.