VB vs VIG
Vanguard Morningstar Small-Cap ETF vs Vanguard Dividend Appreciation ETF
Which is better, VB or VIG?
Small Cap Blend against Large Cap Blend.
VB has a lower expense ratio. VB led over 1Y and 3Y, VIG over 5Y and the full window. VB is less concentrated, with 4.3% of the fund in its ten largest positions against 33.4%.
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 | VIG |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.04% |
| AUM | $79.7B | $111.4B |
| Dividend Yield | 1.21% | 1.48% |
| Holdings | 1,319 | 335 |
| YTD Return | +11.48%Best | +8.31% |
| 1Y Return | +13.26%Best | +11.70% |
| 3Y Return (annualized) | +15.89%Best | +15.76% |
| 5Y Return (annualized) | +7.33% | +10.72%Best |
| Volatility (annualized) | 19.4% | 13.3%Best |
| Max Drawdown | -61.0% | -48.2%Best |
| $10,000 over 5 years | $14,243 | $16,639Best |
| Top 10 Weight | 4.3%Best | 33.4% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Blend |
| Inception | Jan 26, 2004 | Apr 21, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Apr 27, 2006 to Sep 18, 2026 (20.4 years).
VB vs VIG 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 20.4 years both funds cover.
VB vs VIG Performance
Vanguard Morningstar Small-Cap ETF (VB) is an ETF from Vanguard (US) and Vanguard Dividend Appreciation ETF (VIG) is an ETF from Vanguard (US). Over the past year VB returned +13.26% while VIG returned +11.70%. Year to date, VB is up 11.48% versus a gain of 8.31% for VIG.
Over three years, VB compounded at +15.89% per year against +15.76% for VIG; over five years the annualized figures are +7.33% and +10.72% respectively. Across the full 20-year window we track, VIG has the edge at +8.45% annualized vs +7.90%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 19.4% 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 what each fund did in the worst stretch of the window measured above.
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 1.21% against 1.48% for VIG.
Holdings Overlap
15.0% of VB's money is in holdings VIG also owns. 5.7% of VIG's money is in holdings VB also owns.
VB and VIG share little of their money.
146 positions in common, counted across the 1,302 positions we hold weights for in VB and 322 in VIG, against full books of 1,319 and 335.
What only one of them owns
Our book lists 157 positions for VIG that do not appear in our book for VB (93.7% of the fund), and 1,100 for VB that do not appear in VIG (79.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VB | Weight in VIG | Difference |
|---|---|---|---|
| CASYCaseys General | 0.35% | 0.14% | 0.21% |
| ATOAtmos Energy Corp | 0.34% | 0.12% | 0.22% |
| WSMWilliams-sonoma Inc | 0.33% | 0.12% | 0.21% |
| JBHTJb Hunt Transport Services Inc. | 0.26% | 0.09% | 0.17% |
| RBA:CARb Global, Inc | 0.26% | 0.09% | 0.17% |
| STLDSteel Dynamics, Inc. | 0.19% | 0.15% | 0.04% |
| CHRWCH Robinson Worldwide | 0.25% | 0.08% | 0.17% |
| RSReliance Steel & Aluminum Co. | 0.23% | 0.09% | 0.14% |
| CDWCDW Corporation | 0.22% | 0.08% | 0.14% |
| ITTItt Inc | 0.21% | 0.08% | 0.13% |
You are not choosing between two funds in isolation.
Whichever of VB and VIG 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 VIG?
VB has an expense ratio of 0.03% while VIG charges 0.04%. VB is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VB or VIG?
Over the past year VB returned +13.26% vs +11.70% for VIG, so VB leads on 1-year performance. Over the longest common window we track (20 years), VB annualized +7.90% vs +8.45% for VIG. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VB or VIG?
VB has been the more volatile fund at 19.4% 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 their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VB and VIG?
15.0% of VB's money is in holdings VIG also owns. 5.7% of VIG's is in holdings VB also owns. They hold 146 positions in common, counted across the 1,302 positions we hold weights for in VB and 322 in VIG.
Which pays a higher dividend, VB or VIG?
VB yields 1.21% while VIG yields 1.48%, so VIG currently pays the higher dividend yield.
Is VIG better than VB?
VB has a lower expense ratio. VB led over 1Y and 3Y, VIG over 5Y and the full window. VB is less concentrated, with 4.3% of the fund in its ten largest positions against 33.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.