What exactly do expense ratios measure for these ETFs?

Expense ratios quantify the annual cost to manage a fund, expressed as a percentage of assets. VB has an expense ratio of 0.03%, while VBK stands at 0.05%. This 0.02 percentage point difference means that for every $10,000 invested, VB charges $3 and VBK charges $5 annually. Lower expenses reduce the drag on returns over time, which is a critical factor to consider alongside performance when evaluating long-term holdings.

How do these ETFs differ in their tracking of the small-cap market?

VB tracks the broader small-cap market by blending value and growth stocks, whereas VBK focuses specifically on small-cap growth companies. This leads to distinct portfolio constructions and exposures. Both funds provide access to the small-cap segment, but they target different investment styles. Consequently, the returns and risk profiles can vary significantly depending on the prevailing market trends in small-cap growth versus blend sectors.

Is there significant overlap in the top holdings of these two ETFs?

There is moderate overlap. The shared top-10 holdings are NTRA, RVMD, CRDO, TWLO, FTI, and P. For instance, NTRA represents 0.54% of VB and 1.27% of VBK. VB also holds distinct names like MRNA (0.62%) and EME (0.40%), while VBK holds unique names like OKTA (0.84%) and ATI (0.80%). VBK’s top-10 holdings generally carry slightly higher weights compared to VB.

How do the expense ratio differences impact long-term returns?

The expense ratio gap of 0.02 percentage points between VB (0.03%) and VBK (0.05%) may seem trivial but compounds over time. While 0.02% appears small, consistent annual fees reduce the compounding effect on the portfolio's growth. Over decades, these differences accumulate, causing the total dollar amount of fees paid to diverge. Understanding these cost implications is essential for evaluating the total return potential of low-cost investment vehicles.

How do the dividend yields compare, and what does this imply?

VB has a dividend yield of 1.23%, while VBK yields 0.45%. This substantial 0.78 percentage point difference suggests VB’s constituents may be better positioned for dividend income, while VBK focuses on companies prioritising growth over payouts. For investors, this implies differing income expectations. Dividend income can be an important component of total return, and the yield variance highlights the different strategic objectives of a blend versus a pure growth strategy.

How does net asset size affect these ETFs?

VB has $78.6 billion in net assets, making it substantially larger than VBK, which holds $22.9 billion. Larger funds generally benefit from economies of scale, which can support maintaining very low expense ratios like VB's 0.03%. However, smaller AUM does not necessarily hinder a fund's ability to perform or maintain liquidity. Investors should weigh the significance of size, but also consider that a smaller fund may still be highly efficient.

How do ETFs distribute dividends?

When underlying holdings pay dividends, the ETF aggregates the cash and usually distributes it to shareholders periodically, often quarterly. The fund's dividend yield reflects the trailing twelve-month distributions relative to the price. For investors, these distributions can be taken as cash or reinvested. Note that the yield fluctuates with price changes and does not guarantee future payouts. It represents income received from the underlying corporate holdings of the fund itself.

What investing goals are each fund typically associated with?

VB is typically associated with broad-based small-cap exposure, offering a diversified blend of growth and value. It suits investors seeking comprehensive exposure to the small-cap segment. VBK targets investors specifically focused on small-cap growth companies, aiming to capture the potential upside of high-growth firms within that size category. Neither strategy is inherently superior; the choice depends on an investor’s outlook, risk tolerance, and whether they prefer a diversified style approach or a growth-only exposure.

How do the two ETFs compare in terms of fund size?

There is a notable size difference between the two funds. With net assets of $78.6 billion, VB is over three times larger than VBK, which has $22.9 billion in net assets. Both funds are well-capitalised, and their significant asset bases suggest they are well-established products within the small-cap universe. This size can impact trading liquidity and fund stability, though both funds have been in existence since the same date in 2004.

Can you compare the inception dates and history of these ETFs?

Both VB and VBK have an identical inception date of Jan 26, 2004. This common history means both funds have been subject to the same macroeconomic conditions, including the 2008 financial crisis and the 2020 pandemic market disruptions. Their parallel existence allows for a long-term, like-for-like comparison of how their respective blend and growth small-cap strategies have weathered various market cycles over more than 20 years.

What should investors know about missing data points?

For both funds, the index tracked and sector weights are currently 'not available' in this dataset. These metrics are crucial for understanding the precise benchmark and industry diversification. Until this data is available, investors should exercise caution and consult additional official sources if these details are necessary for their analysis. It is important to know that certain structural data points are not available, preventing a complete sector-level comparison at this time.

How do their investment styles differ in practice?

The distinction lies between blend and growth styles. VB, as a Small Blend fund, combines growth and value stocks, theoretically providing broader diversification. VBK, a Small Growth fund, targets high-growth small-cap companies, which may be more volatile but are positioned to capture growth trends. Investors might choose a blend for a balanced style approach or growth for specific exposure to companies with higher revenue or earnings growth expectations.

VB vs VBK

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare the Vanguard Small-Cap ETF (VB) and the Vanguard Small-Cap Growth ETF (VBK) side by side. This analysis reviews their expense ratios, dividend yields, portfolio holdings and how each fund tracks the small-cap market. VB has a 0.03% expense ratio versus VBK’s 0.05%, with differing yields of 1.23% and 0.45% respectively. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

Metric

VBK

0.03%

Expense Ratio

0.05%

1.23%

Dividend Yield

0.45%

$78.57B

Net Assets

$22.91B

1,311

Holdings

550

Jan 26, 2004

Inception Date

Jan 26, 2004

–

Index Tracked

–

Small Blend

Fund Category

Small Growth

VB costs about $2.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	VB	VBK
NTRANatera, Inc.	0.54%	1.27%
RVMDRevolution Medicines, Inc.	0.51%	1.20%
CRDOCredo Technology Group Holding Ltd	0.46%	1.08%
TWLOTwilio Inc.	0.44%	1.03%
FTITechnipFMC plc	0.38%	0.90%
PEverpure, Inc.	0.36%	0.85%

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Investment Analysis

VB

Pros

VB features an expense ratio of 0.03%.
Net assets are 78.6 billion dollars.
Inception was on Jan 26, 2004.

Considerations

The index tracked is not available.
Sector weights are not available.
The dividend yield is 1.23%.

VBK

Pros

VBK has net assets of 22.9 billion dollars.
It was established in Jan 26, 2004.
The top holding NTRA weighs 1.27%.

Considerations

The expense ratio is higher at 0.05%.
The index tracked is not available.
The dividend yield is low at 0.45%.

About VB and VBK

VB (VB)

The Vanguard Small-Cap ETF (VB) is a widely recognised investment vehicle designed to provide exposure to smaller companies in the US equity market. It belongs to the Small Blend category, aiming to capture a diversified mix of small-cap growth and value stocks. With an extremely low expense ratio of 0.03%, it offers a cost-effective way for investors to access the small-cap sector, which has historically provided higher potential returns compared to large-cap stocks, albeit with greater volatility. The fund holds over 1,300 companies and manages approximately $78.57 billion in net assets, offering broad diversification within its niche. It has been in existence since 2004, providing a track record for investors to consider. While small-cap investments can add growth potential to a portfolio, they also carry higher risks, including price fluctuations and economic sensitivity. Investors should weigh these factors against their own risk tolerance and investment objectives, remembering that returns are not guaranteed and values can fall as well as rise.

VBK (VBK)

The Vanguard Small-Cap Growth ETF aims to track the performance of small companies in the US that exhibit growth characteristics. It offers investors exposure to 550 holdings, focusing on businesses expected to grow faster than the broader market. With a low expense ratio of 0.05% and net assets of USD 22.91 billion, it provides a cost-effective way to access this segment. Established in January 2004, the fund has maintained its objective to mirror the small-cap growth landscape. While it currently pays no dividend, its dividend yield is 0.45%. Investors should note that small-cap stocks can be more volatile than larger counterparts, and values can rise or fall over time.

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VB vs VBK

Fund Snapshot