VB vs VUG
Vanguard Morningstar Small-Cap ETF vs Vanguard Morningstar Growth ETF
Quick Verdict
VB delivered stronger 1-year returns. VB offers more diversification with 1,311 holdings.
Side-by-Side Comparison
| Metric | VB | VUG | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $79.7B | $219.5B | |
| Dividend Yield | 1.22% | 0.40% | |
| Holdings | 1,311 | 146 | |
| YTD Return | +17.13% | +9.95% | |
| 1Y Return | +21.90% | +16.19% | |
| 3Y Return (annualized) | +17.26% | +24.37% | |
| 5Y Return (annualized) | +7.59% | +12.50% | |
| Volatility (annualized) | 18.9% | 16.5% | |
| Max Drawdown | -61.0% | -51.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Jan 26, 2004 |
VB vs VUG Performance
Vanguard Morningstar Small-Cap ETF (VB) is a ETF from Vanguard (US) and Vanguard Morningstar Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VB returned +21.90% while VUG returned +16.19%. Year to date, VB is up 17.13% versus a gain of 9.95% for VUG.
Over three years, VB compounded at +17.26% per year against +24.37% for VUG; over five years the annualized figures are +7.59% and +12.50% respectively. Across the full 23-year window we track, VUG has the edge at +11.25% annualized vs +8.81%. 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 16.5% for VUG. 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 -51.4% for VUG. 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VB charges 0.03% per year while VUG charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VB currently yields 1.22% against 0.40% for VUG.
Holdings Overlap
VB and VUG share 16 holdings out of 1431 unique holdings combined, representing a 1.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VB or VUG?
VB has an expense ratio of 0.03% while VUG charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VB or VUG?
Over the past year VB returned +21.90% vs +16.19% for VUG, so VB leads on 1-year performance. Over the longest common window we track (23 years), VB annualized +8.81% vs +11.25% for VUG. Past performance does not guarantee future results.
Which is riskier, VB or VUG?
VB has been the more volatile fund at 18.9% annualized versus 16.5% for VUG. Worst drawdown: VB -61.0% vs VUG -51.4%.
Should I hold both VB and VUG?
VB and VUG have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VB and VUG?
VB and VUG share 16 common holdings with a 1.7% weight overlap. Combined, they hold 1431 unique securities.
Which pays a higher dividend, VB or VUG?
VB yields 1.22% while VUG yields 0.40%, so VB currently pays the higher dividend yield.
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