VB vs VYM
Vanguard Morningstar Small-Cap ETF vs Vanguard High Dividend Yield ETF
Which is better, VB or VYM?
Small Cap Blend against Large Cap Value.
VB has a lower expense ratio. VB led over the full window, VYM over 1Y, 3Y and 5Y. VB is less concentrated, with 4.3% of the fund in its ten largest positions against 25.9%.
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 | VYM |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.04% |
| AUM | $79.7B | $81.6B |
| Dividend Yield | 1.21% | 2.22% |
| Holdings | 1,319 | 613 |
| YTD Return | +12.96% | +13.91%Best |
| 1Y Return | +15.18% | +17.57%Best |
| 3Y Return (annualized) | +15.97% | +18.12%Best |
| 5Y Return (annualized) | +7.16% | +12.17%Best |
| Volatility (annualized) | 19.5% | 14.5%Best |
| Max Drawdown | -61.0% | -58.8%Best |
| $10,000 over 5 years | $14,131 | $17,758Best |
| Top 10 Weight | 4.3%Best | 25.9% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Value |
| Inception | Jan 26, 2004 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 11, 2026 (19.8 years).
VB vs VYM 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 19.8 years both funds cover.
VB vs VYM Performance
Vanguard Morningstar Small-Cap ETF (VB) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VB returned +15.18% while VYM returned +17.57%. Year to date, VB is up 12.96% versus a gain of 13.91% for VYM.
Over three years, VB compounded at +15.97% per year against +18.12% for VYM; over five years the annualized figures are +7.16% and +12.17% respectively. Across the full 20-year window we track, VB has the edge at +8.02% annualized vs +6.95%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 19.5% compared with 14.5% for VYM. 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 -58.8% for VYM. 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 VYM 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 2.22% for VYM.
Holdings Overlap
28.6% of VB's money is in holdings VYM also owns. 10.2% of VYM's money is in holdings VB also owns.
VB and VYM share little of their money.
363 positions in common, counted across the 1,303 positions we hold weights for in VB and 603 in VYM, against full books of 1,319 and 613.
What only one of them owns
Our book lists 219 positions for VYM that do not appear in our book for VB (87.5% of the fund), and 888 for VB that do not appear in VYM (66.7%).
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 VYM | Difference |
|---|---|---|---|
| NRGNrg Energy Inc. | 0.37% | 0.12% | 0.25% |
| TPRTapestry Inc. | 0.35% | 0.12% | 0.23% |
| ATOAtmos Energy Corp | 0.34% | 0.12% | 0.22% |
| WSMWilliams-sonoma Inc | 0.33% | 0.11% | 0.22% |
| SWR:IESmurfit Westrock Plc | 0.29% | 0.10% | 0.19% |
| CHKChesapeake Energy Corp | 0.26% | 0.09% | 0.17% |
| CHRWCh Robinson Worldwide Inc. | 0.25% | 0.09% | 0.16% |
| OMCOmnicom Group Inc. | 0.25% | 0.09% | 0.16% |
| EQTEqt Corp | 0.20% | 0.13% | 0.07% |
| RSReliance Steel & Aluminum Co. | 0.23% | 0.08% | 0.15% |
28.6% of VB is already inside VYM.
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 VYM?
VB has an expense ratio of 0.03% while VYM charges 0.04%. VB is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VB or VYM?
Over the past year VB returned +15.18% vs +17.57% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VB annualized +8.02% vs +6.95% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VB or VYM?
VB has been the more volatile fund at 19.5% annualized versus 14.5% for VYM. Worst drawdown: VB -61.0% vs VYM -58.8%.
Should I hold both VB and VYM?
VB and VYM 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 VYM?
28.6% of VB's money is in holdings VYM also owns. 10.2% of VYM's is in holdings VB also owns. They hold 363 positions in common, counted across the 1,303 positions we hold weights for in VB and 603 in VYM.
Which pays a higher dividend, VB or VYM?
VB yields 1.21% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than VB?
VB has a lower expense ratio. VB led over the full window, VYM over 1Y, 3Y and 5Y. VB is less concentrated, with 4.3% of the fund in its ten largest positions against 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.