VB vs VO
VB vs VO
Vanguard Small Cap ETF vs Vanguard Mid-Cap ETF
Quick Verdict
VB delivered stronger 1-year returns. VB offers more diversification with 1112 holdings.
Side-by-Side Comparison
| Metric | VB | VO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $81.5B | $105.9B | |
| Dividend Yield | 1.48% | 1.53% | |
| Holdings | 1,324 | 293 | |
| YTD Return | +17.82% | +13.82% | |
| 1Y Return | +29.09% | +18.00% | |
| 3Y Return (annualized) | +16.24% | +15.98% | |
| 5Y Return (annualized) | +8.18% | +8.06% | |
| Volatility (annualized) | 18.9% | 16.9% | |
| Max Drawdown | -61.0% | -60.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Jan 26, 2004 |
VB vs VO Performance
Vanguard Small Cap ETF (VB) is a ETF from Vanguard (US) and Vanguard Mid-Cap ETF (VO) is a ETF from Vanguard (US). Over the past year VB returned +29.09% while VO returned +18.00%. Year to date, VB is up 17.82% versus a gain of 13.82% for VO.
Over three years, VB compounded at +16.24% per year against +15.98% for VO; over five years the annualized figures are +8.18% and +8.06% respectively. Across the full 23-year window we track, VO has the edge at +9.21% annualized vs +8.86%. 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 16.9% for VO. 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 -60.3% for VO. 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VB charges 0.03% per year while VO charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VB currently yields 1.48% against 1.53% for VO.
Holdings Overlap
VB and VO share 23 holdings out of 1368 unique holdings combined, representing a 5.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VB | Weight in VO | Difference |
|---|---|---|---|
| FIX | 0.65% | 0.67% | 0.02% |
| CIEN | 0.64% | 0.67% | 0.03% |
| LITE | 0.64% | 0.65% | 0.01% |
| BE | Pro | Pro | Pro |
| TER | Pro | Pro | Pro |
| RKLB | Pro | Pro | Pro |
| FLEX:SI | Pro | Pro | Pro |
| ALAB | Pro | Pro | Pro |
| EQT | Pro | Pro | Pro |
| ASTS | Pro | Pro | Pro |
See all 10 holdings VB shares with VO Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, VB or VO?
VB has an expense ratio of 0.03% while VO charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VB or VO?
Over the past year VB returned +29.09% vs +18.00% for VO, so VB leads on 1-year performance. Over the longest common window we track (23 years), VB annualized +8.86% vs +9.21% for VO. Past performance does not guarantee future results.
Which is riskier, VB or VO?
VB has been the more volatile fund at 18.9% annualized versus 16.9% for VO. Worst drawdown: VB -61.0% vs VO -60.3%.
Should I hold both VB and VO?
VB and VO have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VB and VO?
VB and VO share 23 common holdings with a 5.3% weight overlap. Combined, they hold 1368 unique securities.
Which pays a higher dividend, VB or VO?
VB yields 1.48% while VO yields 1.53%, so VO currently pays the higher dividend yield.
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