XJR vs. VLU

Last updated Jun 3, 2026

XJR (iShares ESG Screened S&P Small-Cap ETF) and VLU (SPDR S&P 1500 Value Tilt ETF) are both exchange-traded funds - XJR is a Small Cap Blend Equities fund tracking the S&P SmallCap 600 Sustainability Screened Index, while VLU is a Large Cap Value Equities fund tracking the S&P 1500 Low Valuation Tilt Index. Both are passively managed. Over the past 5 years, XJR returned 5.65%/yr vs 12.12%/yr for VLU. Their correlation of 0.89 suggests significant overlap in exposure. Both charge a 0.12% expense ratio.

Performance

XJR vs. VLU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG Screened S&P Small-Cap ETF (XJR) and SPDR S&P 1500 Value Tilt ETF (VLU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XJR achieves a 16.02% return, which is significantly higher than VLU's 13.54% return.

XJR

• 1D: 1.05%
• 1M: 2.00%
• YTD: 16.02%
• 6M: 16.40%
• 1Y: 31.62%
• 3Y*: 14.50%
• 5Y*: 5.65%
• 10Y*: —

VLU

• 1D: 0.17%
• 1M: 2.75%
• YTD: 13.54%
• 6M: 14.96%
• 1Y: 30.92%
• 3Y*: 20.80%
• 5Y*: 12.12%
• 10Y*: 14.04%

*Multi-year figures are annualized to reflect compound growth (CAGR)

XJR vs. VLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
XJR iShares ESG Screened S&P Small-Cap ETF	16.02%	4.73%	9.59%	16.39%	-17.30%	24.96%	35.61%
VLU SPDR S&P 1500 Value Tilt ETF	13.54%	16.70%	17.24%	17.18%	-8.24%	30.95%	23.33%

Correlation

The correlation between XJR and VLU is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (All Time) Calculated using the full available price history since Sep 25, 2020	0.89

The correlation between XJR and VLU has been stable across timeframes, ranging from 0.88 to 0.89 - a consistent structural relationship.

XJR vs. VLU - Sectors Allocation Comparison

Sectors	XJR	VLU
Financial Services	18.2%	18.8%
Technology	16.8%	17.8%
Industrials	15.5%	8.2%
Consumer Cyclical	13.5%	10.4%
Healthcare	10.7%	11.7%
Real Estate	7.6%	3.4%
Energy	4.7%	7.2%
Basic Materials	4.5%	2.6%
Consumer Defensive	2.7%	7.4%
Communication Services	2.5%	8.8%
Utilities	2.0%	3.6%

Return for Risk

XJR vs. VLU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XJR

XJR Risk / Return Rank: 55
XJR Sharpe Ratio Rank: 51
XJR Sortino Ratio Rank: 53
XJR Omega Ratio Rank: 49
XJR Calmar Ratio Rank: 65
XJR Martin Ratio Rank: 58

VLU

VLU Risk / Return Rank: 86
VLU Sharpe Ratio Rank: 86
VLU Sortino Ratio Rank: 87
VLU Omega Ratio Rank: 85
VLU Calmar Ratio Rank: 86
VLU Martin Ratio Rank: 88

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

XJR vs. VLU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Screened S&P Small-Cap ETF (XJR) and SPDR S&P 1500 Value Tilt ETF (VLU). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	XJR	VLU	Difference
Sharpe ratio Return per unit of total volatility	1.78	2.85	-1.07
Sortino ratio Return per unit of downside risk	2.59	3.98	-1.39
Omega ratio Gain probability vs. loss probability	1.31	1.52	-0.21
Calmar ratio Return relative to maximum drawdown	3.26	4.87	-1.60
Martin ratio Return relative to average drawdown	10.51	19.55	-9.04
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XJR vs. VLU - Sharpe Ratio Comparison

The current XJR Sharpe Ratio is 1.78, which is lower than the VLU Sharpe Ratio of 2.85. The chart below compares the historical Sharpe Ratios of XJR and VLU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XJR	VLU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.78	2.85	-1.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.79	-0.53
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.78	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.68	0.82	-0.14

Drawdowns

XJR vs. VLU - Drawdown Comparison

The maximum XJR drawdown since its inception was -27.14%, smaller than the maximum VLU drawdown of -37.39%. Use the drawdown chart below to compare losses from any high point for XJR and VLU.

Drawdown Indicators

	XJR	VLU	Difference
Max Drawdown Largest peak-to-trough decline	-27.14%	-37.39%	+10.25%
Max Drawdown (1Y) Largest decline over 1 year	-9.43%	-6.34%	-3.09%
Max Drawdown (3Y) Largest decline over 3 years	-27.14%	-16.22%	-10.92%
Max Drawdown (5Y) Largest decline over 5 years	-27.14%	-19.55%	-7.59%
Max Drawdown (10Y) Largest decline over 10 years	—	-37.39%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-9.48%	-3.74%	-5.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.93%	1.58%	+1.35%

Volatility

XJR vs. VLU - Volatility Comparison

iShares ESG Screened S&P Small-Cap ETF (XJR) has a higher volatility of 4.81% compared to SPDR S&P 1500 Value Tilt ETF (VLU) at 2.35%. This indicates that XJR's price experiences larger fluctuations and is considered to be riskier than VLU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XJR	VLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.81%	2.35%	+2.46%
Volatility (6M) Calculated over the trailing 6-month period	12.19%	7.71%	+4.48%
Volatility (1Y) Calculated over the trailing 1-year period	17.83%	10.88%	+6.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.43%	15.40%	+6.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.73%	18.09%	+3.64%

XJR vs. VLU - Expense Ratio Comparison

Both XJR and VLU have an expense ratio of 0.12%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

XJR vs. VLU - Dividend Comparison

XJR's dividend yield for the trailing twelve months is around 0.98%, less than VLU's 1.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VLU SPDR S&P 1500 Value Tilt ETF	1.61%	1.82%	2.00%	2.02%	2.16%	1.86%	1.98%	2.19%	2.57%	1.96%	2.14%	6.37%
XJR iShares ESG Screened S&P Small-Cap ETF	0.98%	1.14%	1.96%	0.92%	1.29%	2.00%	0.58%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XJR and VLU in my portfolio?

XJR and VLU have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XJR or VLU?

XJR has higher volatility (4.81%) compared to VLU (2.35%). In terms of maximum drawdown, XJR dropped -27.14% vs VLU's -37.39%.

Which ETF is better, XJR or VLU?

On 5-year performance, VLU leads with 12.12% vs 5.65% for XJR. Both ETFs have the same 0.12% expense ratio. On volatility, VLU has been the lower-risk option at 2.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XJR or VLU?

Over the 5-year period, VLU has performed better with a 12.12% return vs 5.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XJR or VLU?

XJR and VLU have the same expense ratio: 0.12% per year.

Which ETF pays a higher dividend yield, XJR or VLU?

VLU has the higher dividend yield at 1.61%, compared with 0.98% for XJR.

What is the main difference between XJR and VLU?

XJR is categorized as Small Cap Blend Equities, while VLU is Large Cap Value Equities. XJR tracks S&P SmallCap 600 Sustainability Screened Index, while VLU tracks S&P 1500 Low Valuation Tilt Index. They also come from different issuers: iShares and State Street.

Which has better risk-adjusted returns?

VLU currently has the higher Sharpe Ratio (2.85 vs 1.78), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.