What is the primary difference in investment philosophy between VB and VBR?

VB targets the broad small-cap market, aiming to replicate the performance of the total small-cap segment. In contrast, VBR focuses specifically on small-cap value stocks, which are typically companies with lower valuations relative to their fundamentals. While both funds offer exposure to smaller companies, VBR screens for value characteristics, resulting in a different risk and return profile compared to the more balanced approach of VB.

How do expense ratios impact long-term returns for these ETFs?

Expense ratios represent the annual fee deducted from the fund's assets. VB has an expense ratio of 0.03%, while VBR has 0.05%. Although the difference is only 0.02 percentage points, these fees compound over time. Lower costs allow more of the fund's gross return to remain in the investor's pocket. Understanding this small percentage difference helps investors evaluate the cost efficiency of each ETF's structure relative to their investment horizon.

What does the dividend yield indicate in these ETF comparisons?

Dividend yield reflects the annual payout as a percentage of the current share price. VB shows a yield of 1.23%, whereas VBR offers 1.81%. A higher yield in VBR suggests that the small-cap value stocks it holds tend to pay larger dividends relative to their price compared to the broader small-cap mix in VB. This metric helps investors assess potential income generation from each fund's holdings.

How do the top holdings of VB and VBR differ?

Both funds hold MRNA and JBL in their top ten, but their other holdings diverge significantly. VBR includes names like ATO and WSM, reflecting its value orientation. VB holds companies such as NTRA and RVMD, representing a blend of growth and value characteristics. These differences illustrate how VBR's value strategy selects stocks with different fundamental profiles compared to VB's broader small-cap approach.

Why might an investor choose VBR over VB based on sector exposure?

Sector exposure details are currently not available for both VB and VBR. However, generally, small-cap value funds like VBR often overweight sectors such as industrials, energy, and consumer staples. Broad small-cap funds like VB typically have a more balanced sector distribution, including higher weights in technology and healthcare. Investors should review the latest prospectus for detailed sector breakdowns to understand these structural differences.

How do the net assets of VB and VBR affect liquidity?

VB holds net assets of $78.6 billion, while VBR holds $37.0 billion. Larger asset bases often contribute to better liquidity, allowing investors to buy or sell shares with minimal price impact. While both funds are substantial in size, VB's larger pool may offer slightly higher trading volume and tighter bid-ask spreads. Liquidity is a practical consideration for active traders or those moving large positions.

What is the significance of the inception date for these funds?

Both VB and VBR were launched in January 2004. This shared inception date provides a similar operational track record, allowing investors to compare their performance over an extended period. Having a long history means that both funds have navigated various market cycles, including recessions and bull markets. This historical data can be useful for assessing how each strategy has behaved under different economic conditions.

How do small-cap and small-cap value segments react to economic changes?

Small-cap stocks, represented by VB, often have higher growth potential but also higher volatility due to their smaller size and less established financial bases. Small-cap value stocks, represented by VBR, are typically more sensitive to economic cycles and interest rate changes, as they often include mature companies in traditional industries. Understanding these market dynamics helps investors anticipate how each fund might perform in different economic environments.

Are there any fees associated with trading these ETFs?

The expense ratios of 0.03% for VB and 0.05% for VBR are deducted from the fund's assets and are not charged directly to the investor. However, investors may face commission fees depending on their brokerage provider when buying or selling shares. It is essential to check with the specific broker for any transaction costs, as these are separate from the ongoing expense ratio.

What should investors know about sector weights for these funds?

For both VB and VBR, the specific sector weights are currently not available. Investors seeking detailed insight into the geographic or industry distribution of these funds should consult the latest official fund documentation or Vanguard's website. Without this data, it is difficult to precisely compare the sector risk exposure of the two ETFs, so reliance on general category characteristics is necessary.

How do these ETFs handle dividend distributions?

Both VB and VBR distribute dividends to shareholders, typically on a quarterly basis, though the frequency can vary. The yield of 1.23% for VB and 1.81% for VBR reflects the recent distribution history. These payments are derived from the dividends collected from the underlying stocks in each fund. Investors can choose to reinvest these distributions or receive them as cash, depending on their account settings.

VB vs VBR

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

Compare Vanguard Small-Cap ETF (VB) and Vanguard Small-Cap Value ETF (VBR) on fees, holdings, dividends and market tracking. VB costs 0.03%; VBR costs 0.05%. VB yields 1.23%; VBR yields 1.81%. Learn how each fund approaches small-cap exposure. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

Metric

VBR

0.03%

Expense Ratio

0.05%

1.23%

Dividend Yield

1.81%

$78.57B

Net Assets

$36.98B

1,311

Holdings

847

Jan 26, 2004

Inception Date

Jan 26, 2004

–

Index Tracked

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Small Blend

Fund Category

Small Value

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

Shared Top Holdings

Holding	VB	VBR
MRNAModerna, Inc.	0.62%	1.07%
JBLJabil Inc.	0.40%	0.69%

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Investment Analysis

VB

Pros

VB offers a very low expense ratio of 0.03 percent.
The fund holds net assets of $78.6 billion, ensuring substantial size.
Inception in January 2004 provides a long operational track record.

Considerations

A dividend yield of 1.23 percent is relatively modest.
Sector weights and the index tracked are not available.
Top holdings include small weights like 0.62 percent in MRNA.

VBR

Pros

VBR provides a dividend yield of 1.81 percent for investors.
The fund holds net assets of $37.0 billion, indicating good liquidity.
Inception in January 2004 ensures a long operational track record.

Considerations

The expense ratio of 0.05 percent is higher than many peers.
Sector weights and the index tracked are not available.
Top holdings include small weights like 1.07 percent in MRNA.

About VB and VBR

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.

VBR (VBR)

The Vanguard Small-Cap Value ETF (VBR) offers investors exposure to smaller companies that are often valued by the market at lower multiples relative to their earnings or book value. With net assets of approximately USD 36.98 billion and a low expense ratio of 0.05%, it aims to provide cost-efficient access to the US small-cap value sector. The fund holds over 840 individual stocks, diversifying risk across a broad range of companies. Historically, small-cap value strategies have been associated with higher potential returns, though they can also experience greater volatility compared to large-cap stocks. VBR pays a dividend yield of around 1.81%, offering a modest income stream. This ETF is suitable for those looking to complement a core portfolio with a factor tilt towards smaller, potentially undervalued businesses, keeping in mind that values can rise and fall.

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VB vs VBR

Fund Snapshot