VB vs VIG
VB vs VIG
Vanguard Small Cap ETF vs Vanguard Dividend Appreciation ETF
Quick Verdict
VB has a lower expense ratio. VB delivered stronger 1-year returns. VB offers more diversification with 1112 holdings.
Side-by-Side Comparison
| Metric | VB | VIG | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $81.5B | $110.2B | |
| Dividend Yield | 1.48% | 1.79% | |
| Holdings | 1,324 | 335 | |
| YTD Return | +17.82% | +12.07% | |
| 1Y Return | +29.09% | +20.98% | |
| 3Y Return (annualized) | +16.24% | +16.55% | |
| 5Y Return (annualized) | +8.18% | +10.94% | |
| Volatility (annualized) | 18.9% | 13.3% | |
| Max Drawdown | -61.0% | -48.2% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Apr 21, 2006 |
VB vs VIG Performance
Vanguard Small Cap ETF (VB) is a ETF from Vanguard (US) and Vanguard Dividend Appreciation ETF (VIG) is a ETF from Vanguard (US). Over the past year VB returned +29.09% while VIG returned +20.98%. Year to date, VB is up 17.82% versus a gain of 12.07% for VIG.
Over three years, VB compounded at +16.24% per year against +16.55% for VIG; over five years the annualized figures are +8.18% and +10.94% respectively. Across the full 20-year window we track, VB has the edge at +8.86% annualized vs +8.69%. 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 13.3% for VIG. 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 -48.2% for VIG. 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VB charges 0.03% per year while VIG 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 1.48% against 1.79% for VIG.
Holdings Overlap
VB and VIG share 139 holdings out of 1304 unique holdings combined, representing a 5.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VB | Weight in VIG | Difference |
|---|---|---|---|
| FIX | 0.65% | 0.30% | 0.35% |
| ATO | 0.39% | 0.13% | 0.26% |
| CASY | 0.33% | 0.13% | 0.20% |
| WSM | Pro | Pro | Pro |
| RGLD | Pro | Pro | Pro |
| CHRW | Pro | Pro | Pro |
| ALB | Pro | Pro | Pro |
| RBA:CA | Pro | Pro | Pro |
| JBHT | Pro | Pro | Pro |
| BWXT | Pro | Pro | Pro |
See all 10 holdings VB shares with VIG 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 VIG?
VB has an expense ratio of 0.03% while VIG 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 VIG?
Over the past year VB returned +29.09% vs +20.98% for VIG, so VB leads on 1-year performance. Over the longest common window we track (20 years), VB annualized +8.86% vs +8.69% for VIG. Past performance does not guarantee future results.
Which is riskier, VB or VIG?
VB has been the more volatile fund at 18.9% annualized versus 13.3% for VIG. Worst drawdown: VB -61.0% vs VIG -48.2%.
Should I hold both VB and VIG?
VB and VIG have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VB and VIG?
VB and VIG share 139 common holdings with a 5.7% weight overlap. Combined, they hold 1304 unique securities.
Which pays a higher dividend, VB or VIG?
VB yields 1.48% while VIG yields 1.79%, so VIG currently pays the higher dividend yield.
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