VB vs VEA
VB vs VEA
Vanguard Small Cap ETF vs Vanguard FTSE Developed Markets ETF
Quick Verdict
VEA delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.
Side-by-Side Comparison
| Metric | VB | VEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $81.5B | $230.9B | |
| Dividend Yield | 1.48% | 2.57% | |
| Holdings | 1,324 | 3,918 | |
| YTD Return | +17.82% | +16.14% | |
| 1Y Return | +29.09% | +29.87% | |
| 3Y Return (annualized) | +16.24% | +20.12% | |
| 5Y Return (annualized) | +8.18% | +10.27% | |
| Volatility (annualized) | 18.9% | 17.8% | |
| Max Drawdown | -61.0% | -62.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Jul 20, 2007 |
VB vs VEA Performance
Vanguard Small Cap ETF (VB) is a ETF from Vanguard (US) and Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US). Over the past year VB returned +29.09% while VEA returned +29.87%. Year to date, VB is up 17.82% versus a gain of 16.14% for VEA.
Over three years, VB compounded at +16.24% per year against +20.12% for VEA; over five years the annualized figures are +8.18% and +10.27% respectively. Across the full 19-year window we track, VB has the edge at +8.86% annualized vs +3.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 17.8% 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 -61.0% for VB and -62.9% for VEA. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
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 1.48% against 2.57% for VEA.
Holdings Overlap
VB and VEA share 6 holdings out of 4114 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VB | Weight in VEA | Difference |
|---|---|---|---|
| RBA:CA | 0.24% | 0.06% | 0.18% |
| AM | 0.10% | 0.02% | 0.08% |
| ACI | 0.09% | 0.03% | 0.06% |
| MTX:SG | Pro | Pro | Pro |
| SIG | Pro | Pro | Pro |
| GLXY | Pro | Pro | Pro |
See all 6 holdings VB shares with VEA Exact weights in each fund and the difference, for every overlapping position. X-ray my whole portfolio$99/yr Pro · 7-day refund | |||
Frequently Asked Questions
Which is cheaper, VB or VEA?
VB has an expense ratio of 0.03% while VEA charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VB or VEA?
Over the past year VB returned +29.09% vs +29.87% for VEA, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VB annualized +8.86% vs +3.14% for VEA. Past performance does not guarantee future results.
Which is riskier, VB or VEA?
VB has been the more volatile fund at 18.9% annualized versus 17.8% for VEA. Worst drawdown: VB -61.0% vs VEA -62.9%.
Should I hold both VB and VEA?
VB and VEA have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VB and VEA?
VB and VEA share 6 common holdings with a 0.2% weight overlap. Combined, they hold 4114 unique securities.
Which pays a higher dividend, VB or VEA?
VB yields 1.48% while VEA yields 2.57%, so VEA currently pays the higher dividend yield.
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