VB vs VEA
Vanguard Morningstar Small-Cap ETF vs Vanguard FTSE Developed Markets ETF
Which is better, VB or VEA?
Small Cap Blend against Large Cap Blend.
VB led over the full window, VEA over 1Y, 3Y and 5Y.
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 | VB | VEA |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $79.7B | $230.3B |
| Dividend Yield | 1.21% | 2.49% |
| Holdings | 1,319 | 3,886 |
| YTD Return | +11.98% | +14.96%Best |
| 1Y Return | +15.45% | +23.69%Best |
| 3Y Return (annualized) | +15.91% | +20.28%Best |
| 5Y Return (annualized) | +7.03% | +10.02%Best |
| Volatility (annualized) | 19.8% | 17.7%Best |
| Max Drawdown | -60.6%Best | -62.9% |
| $10,000 over 5 years | $14,045 | $16,120Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Blend |
| Inception | Jan 26, 2004 | Jul 20, 2007 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 26, 2007 to Sep 17, 2026 (19.1 years).
VB vs VEA 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 19.1 years both funds cover.
VB vs VEA Performance
Vanguard Morningstar Small-Cap ETF (VB) is an ETF from Vanguard (US) and Vanguard FTSE Developed Markets ETF (VEA) is an ETF from Vanguard (US). Over the past year VB returned +15.45% while VEA returned +23.69%. Year to date, VB is up 11.98% versus a gain of 14.96% for VEA.
Over three years, VB compounded at +15.91% per year against +20.28% for VEA; over five years the annualized figures are +7.03% and +10.02% respectively. Across the full 19-year window we track, VB has the edge at +8.07% annualized vs +3.06%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 19.8% compared with 17.7% for VEA. 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 -60.6% for VB and -62.9% for VEA. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VB charges 0.03% per year while VEA charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VB currently yields 1.21% against 2.49% for VEA.
Holdings Overlap
At least 0.5% of VB's money is in holdings VEA also owns.
Stated as a floor: for VEA, our book for it covers 94.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
7 positions in common, counted across the 1,302 positions we hold weights for in VB and 3,754 in VEA, against full books of 1,319 and 3,886.
Top Shared Holdings
| Stock | Weight in VB | Weight in VEA | Difference |
|---|---|---|---|
| RBA:CARb Global, Inc | 0.26% | 0.06% | 0.20% |
| AMAntero Midstream Corporationam | 0.09% | 0.02% | 0.07% |
| SIG:LNSignet Jewelers Limited Common Shares | 0.04% | 0.03% | 0.01% |
| CCCSCcc Intelligent Solutions Hold | 0.03% | 0.01% | 0.02% |
| SMGScotts Miracle-Gro Company | 0.04% | 0.00% | 0.04% |
| EFR:CAEnergy Fuels Inc | 0.02% | 0.01% | 0.01% |
| LUNR:CALunr Royalties Corp | 0.02% | 0.00% | 0.02% |
You are not choosing between two funds in isolation.
Whichever of VB and VEA you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VB or VEA?
VB has an expense ratio of 0.03% while VEA charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, VB or VEA?
Over the past year VB returned +15.45% vs +23.69% for VEA, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VB annualized +8.07% vs +3.06% for VEA. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VB or VEA?
VB has been the more volatile fund at 19.8% annualized versus 17.7% for VEA. Worst drawdown: VB -60.6% vs VEA -62.9%.
Should I hold both VB and VEA?
VB and VEA have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VB or VEA?
VB yields 1.21% while VEA yields 2.49%, so VEA currently pays the higher dividend yield.
Is VEA better than VB?
VB led over the full window, VEA over 1Y, 3Y and 5Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.