VB vs VEU
Vanguard Morningstar Small-Cap ETF vs Vanguard FTSE All World Ex US ETF
Quick Verdict
VB has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 3,928 holdings.
Side-by-Side Comparison
| Metric | VB | VEU | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $79.7B | $68.4B | |
| Dividend Yield | 1.22% | 2.55% | |
| Holdings | 1,311 | 3,928 | |
| YTD Return | +15.77% | +15.09% | |
| 1Y Return | +20.23% | +26.13% | |
| 3Y Return (annualized) | +16.22% | +19.86% | |
| 5Y Return (annualized) | +7.40% | +9.56% | |
| Volatility (annualized) | 18.9% | 17.7% | |
| Max Drawdown | -61.0% | -62.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Mar 2, 2007 |
VB vs VEU Performance
Vanguard Morningstar Small-Cap ETF (VB) is a ETF from Vanguard (US) and Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US). Over the past year VB returned +20.23% while VEU returned +26.13%. Year to date, VB is up 15.77% versus a gain of 15.09% for VEU.
Over three years, VB compounded at +16.22% per year against +19.86% for VEU; over five years the annualized figures are +7.40% and +9.56% respectively. Across the full 20-year window we track, VB has the edge at +8.75% annualized vs +3.57%. 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 17.7% for VEU. 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 -62.8% for VEU. 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VB charges 0.03% per year while VEU charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VB currently yields 1.22% against 2.55% for VEU.
Holdings Overlap
VB and VEU share 5 holdings out of 4117 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VB or VEU?
VB has an expense ratio of 0.03% while VEU charges 0.04%. VB is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VB or VEU?
Over the past year VB returned +20.23% vs +26.13% for VEU, so VEU leads on 1-year performance. Over the longest common window we track (20 years), VB annualized +8.75% vs +3.57% for VEU. Past performance does not guarantee future results.
Which is riskier, VB or VEU?
VB has been the more volatile fund at 18.9% annualized versus 17.7% for VEU. Worst drawdown: VB -61.0% vs VEU -62.8%.
Should I hold both VB and VEU?
VB and VEU have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VB and VEU?
VB and VEU share 5 common holdings with a 0.1% weight overlap. Combined, they hold 4117 unique securities.
Which pays a higher dividend, VB or VEU?
VB yields 1.22% while VEU yields 2.55%, so VEU currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.