VB vs VT
Vanguard Morningstar Small-Cap ETF vs Vanguard Total World Stock ETF
Which is better, VB or VT?
Small Cap Blend against Large Cap Blend.
VB has a lower expense ratio. VB led over the full window, VT over 1Y, 3Y and 5Y. The two have moved almost in lockstep, correlation 0.91.
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 | VT |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.06% |
| AUM | $79.7B | $97.9B |
| Dividend Yield | 1.21% | 1.55% |
| Holdings | 1,319 | 10,133 |
| YTD Return | +11.98% | +12.72%Best |
| 1Y Return | +15.45% | +18.16%Best |
| 3Y Return (annualized) | +15.91% | +20.32%Best |
| 5Y Return (annualized) | +7.03% | +10.87%Best |
| Volatility (annualized) | 19.9% | 16.6%Best |
| Max Drawdown | -55.1% | -50.6%Best |
| $10,000 over 5 years | $14,045 | $16,752Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Blend |
| Inception | Jan 26, 2004 | Jun 24, 2008 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 26, 2008 to Sep 17, 2026 (18.2 years).
VB vs VT 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 18.2 years both funds cover.
VB vs VT Performance
Vanguard Morningstar Small-Cap ETF (VB) is an ETF from Vanguard (US) and Vanguard Total World Stock ETF (VT) is an ETF from Vanguard (US). Over the past year VB returned +15.45% while VT returned +18.16%. Year to date, VB is up 11.98% versus a gain of 12.72% for VT.
Over three years, VB compounded at +15.91% per year against +20.32% for VT; over five years the annualized figures are +7.03% and +10.87% respectively. Across the full 18-year window we track, VB has the edge at +9.20% annualized vs +7.25%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 19.9% compared with 16.6% for VT. 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 -55.1% for VB and -50.6% for VT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.91. 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 VT charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, VB currently yields 1.21% against 1.55% for VT.
Holdings Overlap
At least 88.6% of VB's money is in holdings VT also owns.
Stated as a floor: for VT, our book for it covers 90.1% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
Most of VB is already inside VT. Owning both mostly buys the same companies twice.
1,029 positions in common, counted across the 1,302 positions we hold weights for in VB and 9,272 in VT, against full books of 1,319 and 10,133.
Top Shared Holdings
| Stock | Weight in VB | Weight in VT | Difference |
|---|---|---|---|
| CRDO:KYCredo Technology Group Holding Ltd | 0.54% | 0.03% | 0.51% |
| JBLJabil, Inc. | 0.49% | 0.03% | 0.46% |
| ALABAstera Labs Inc - Common | 0.45% | 0.04% | 0.41% |
| RVMDRevolution Medicines Inc | 0.45% | 0.03% | 0.42% |
| EMEEmcor Group Inc | 0.44% | 0.03% | 0.41% |
| NTRANatera Inc | 0.44% | 0.03% | 0.41% |
| TWLOTwilio Inc. Class A | 0.38% | 0.03% | 0.35% |
| NRGNrg Energy | 0.37% | 0.02% | 0.35% |
| TPRTapestry Inc. | 0.35% | 0.03% | 0.32% |
| CASYCaseys General | 0.35% | 0.03% | 0.32% |
88.6% of VB is already inside VT.
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 VT?
VB has an expense ratio of 0.03% while VT charges 0.06%. VB is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VB or VT?
Over the past year VB returned +15.45% vs +18.16% for VT, so VT leads on 1-year performance. Over the longest common window we track (18 years), VB annualized +9.20% vs +7.25% for VT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VB or VT?
VB has been the more volatile fund at 19.9% annualized versus 16.6% for VT. Worst drawdown: VB -55.1% vs VT -50.6%.
Should I hold both VB and VT?
VB and VT have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between VB and VT?
At least 88.6% of VB's money is in holdings VT also owns. Our book for VT is partial, so the real figure is this or higher. They hold 1,029 positions in common, counted across the 1,302 positions we hold weights for in VB and 9,272 in VT.
Which pays a higher dividend, VB or VT?
VB yields 1.21% while VT yields 1.55%, so VT currently pays the higher dividend yield.
Is VT better than VB?
VB has a lower expense ratio. VB led over the full window, VT over 1Y, 3Y and 5Y. The two have moved almost in lockstep, correlation 0.91. Which one suits a particular account depends on what it is for. This is information, not a recommendation.