VB vs VNQ
Vanguard Morningstar Small-Cap ETF vs Vanguard Real Estate ETF
Which is better, VB or VNQ?
Small Cap Blend against Mid Cap Blend.
VB has a lower expense ratio. VB led over 1Y, 3Y, 5Y and the full window. VB is less concentrated, with 4.3% of the fund in its ten largest positions against 49.8%.
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 | VNQ |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.13% |
| AUM | $79.7B | $39.3B |
| Dividend Yield | 1.21% | 3.49% |
| Holdings | 1,319 | 144 |
| YTD Return | +11.48%Best | +7.02% |
| 1Y Return | +13.26%Best | +4.62% |
| 3Y Return (annualized) | +15.89%Best | +9.04% |
| 5Y Return (annualized) | +7.33%Best | +1.26% |
| Volatility (annualized) | 19.0%Best | 21.4% |
| Max Drawdown | -61.0%Best | -75.8% |
| $10,000 over 5 years | $14,243Best | $10,646 |
| Top 10 Weight | 4.3%Best | 49.8% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Mid Cap Blend |
| Inception | Jan 26, 2004 | Sep 23, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Sep 30, 2004 to Sep 18, 2026 (22 years).
VB vs VNQ 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 22 years both funds cover.
VB vs VNQ Performance
Vanguard Morningstar Small-Cap ETF (VB) is an ETF from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US). Over the past year VB returned +13.26% while VNQ returned +4.62%. Year to date, VB is up 11.48% versus a gain of 7.02% for VNQ.
Over three years, VB compounded at +15.89% per year against +9.04% for VNQ; over five years the annualized figures are +7.33% and +1.26% respectively. Across the full 22-year window we track, VB has the edge at +8.75% annualized vs +3.84%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 19.0% for VB. 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 -75.8% for VNQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VB charges 0.03% per year while VNQ charges 0.13%. On a $10,000 position that is $3 vs $13 annually, a gap of $10 per year that compounds over a long holding period. On income, VB currently yields 1.21% against 3.49% for VNQ.
Holdings Overlap
7.1% of VB's money is in holdings VNQ also owns. 36.1% of VNQ's money is in holdings VB also owns.
The two portfolios partly overlap.
92 positions in common, counted across the 1,302 positions we hold weights for in VB and 139 in VNQ, against full books of 1,319 and 144.
What only one of them owns
Measured across the 1,302 and 139 positions we hold weights for.
VB holds 1,154 positions VNQ does not, 86.9% of the fund.
Largest: JBL 0.49%, ALAB 0.45%, RVMD 0.45%, EME 0.44%, NTRA 0.44%
Top Shared Holdings
| Stock | Weight in VB | Weight in VNQ | Difference |
|---|---|---|---|
| ESSEssex Property | 0.22% | 1.11% | 0.89% |
| WYWeyerhaeuser Co. | 0.21% | 1.09% | 0.88% |
| KIMKimco Realty Corp | 0.20% | 1.04% | 0.84% |
| HSTHost Hotels & Resorts Inc | 0.19% | 1.05% | 0.86% |
| INVHInvitation Homes Inc. Reit | 0.22% | 0.97% | 0.75% |
| JLLJones Lang Lasalle Inc. | 0.17% | 1.01% | 0.84% |
| WPCW.P Carey Inc. | 0.19% | 0.98% | 0.79% |
| MAAMid-america Apartment | 0.19% | 0.93% | 0.74% |
| SUISun Communities Inc. | 0.18% | 0.92% | 0.74% |
| DOCHealthpeak Properties Inc | 0.18% | 0.92% | 0.74% |
36.1% of VNQ is already inside VB.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VB or VNQ?
VB has an expense ratio of 0.03% while VNQ charges 0.13%. VB is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, VB or VNQ?
Over the past year VB returned +13.26% vs +4.62% for VNQ, so VB leads on 1-year performance. Over the longest common window we track (22 years), VB annualized +8.75% vs +3.84% for VNQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VB or VNQ?
VNQ has been the more volatile fund at 21.4% annualized versus 19.0% for VB. Worst drawdown: VB -61.0% vs VNQ -75.8%.
Should I hold both VB and VNQ?
VB and VNQ have a monthly-return correlation of 0.77, 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 VNQ?
36.1% of VNQ's money is in holdings VB also owns. 36.1% of VNQ's is in holdings VB also owns. They hold 92 positions in common, counted across the 1,302 positions we hold weights for in VB and 139 in VNQ.
Which pays a higher dividend, VB or VNQ?
VB yields 1.21% while VNQ yields 3.49%, so VNQ currently pays the higher dividend yield.
Is VNQ better than VB?
VB has a lower expense ratio. VB led over 1Y, 3Y, 5Y and the full window. VB is less concentrated, with 4.3% of the fund in its ten largest positions against 49.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.