VBK vs VEU
Vanguard Morningstar Small-Cap Growth ETF vs Vanguard FTSE All World Ex US ETF
Which is better, VBK or VEU?
Small Cap Growth against Large Cap Blend.
VEU has a lower expense ratio. VBK led over the full window, VEU over 1Y, 3Y and 5Y.
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 | VBK | VEU |
|---|---|---|
| Expense Ratio | 0.05% | 0.04%Best |
| AUM | $23.2B | $68.4B |
| Dividend Yield | 0.44% | 2.48% |
| Holdings | 553 | 3,928 |
| YTD Return | +10.45% | +12.97%Best |
| 1Y Return | +11.44% | +20.36%Best |
| 3Y Return (annualized) | +16.03% | +19.54%Best |
| 5Y Return (annualized) | +4.05% | +9.72%Best |
| Volatility (annualized) | 20.3% | 17.7%Best |
| Max Drawdown | -59.4%Best | -62.8% |
| $10,000 over 5 years | $12,196 | $15,901Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Growth | Large Cap Blend |
| Inception | Jan 26, 2004 | Mar 2, 2007 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 8, 2007 to Sep 18, 2026 (19.5 years).
VBK vs VEU 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 19.5 years both funds cover.
VBK vs VEU Performance
Vanguard Morningstar Small-Cap Growth ETF (VBK) is an ETF from Vanguard (US) and Vanguard FTSE All World Ex US ETF (VEU) is an ETF from Vanguard (US). Over the past year VBK returned +11.44% while VEU returned +20.36%. Year to date, VBK is up 10.45% versus a gain of 12.97% for VEU.
Over three years, VBK compounded at +16.03% per year against +19.54% for VEU; over five years the annualized figures are +4.05% and +9.72% respectively. Across the full 20-year window we track, VBK has the edge at +8.85% annualized vs +3.46%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBK has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 17.7% for VEU. 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 -59.4% for VBK and -62.8% for VEU. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VBK charges 0.05% per year while VEU charges 0.04%. On a $10,000 position that is $5 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VBK currently yields 0.44% against 2.48% for VEU.
Holdings Overlap
At least 0.6% of VBK's money is in holdings VEU also owns.
Stated as a floor: for VEU, our book for it covers 94.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 542 positions we hold weights for in VBK and 3,645 in VEU, against full books of 553 and 3,928.
Top Shared Holdings
| Stock | Weight in VBK | Weight in VEU | Difference |
|---|---|---|---|
| RBA:CARb Global, Inc | 0.59% | 0.05% | 0.54% |
You are not choosing between two funds in isolation.
Whichever of VBK and VEU you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VBK or VEU?
VBK has an expense ratio of 0.05% while VEU charges 0.04%. VEU is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VBK or VEU?
Over the past year VBK returned +11.44% vs +20.36% for VEU, so VEU leads on 1-year performance. Over the longest common window we track (20 years), VBK annualized +8.85% vs +3.46% for VEU. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBK or VEU?
VBK has been the more volatile fund at 20.3% annualized versus 17.7% for VEU. Worst drawdown: VBK -59.4% vs VEU -62.8%.
Should I hold both VBK and VEU?
VBK and VEU have a monthly-return correlation of 0.80, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VBK or VEU?
VBK yields 0.44% while VEU yields 2.48%, so VEU currently pays the higher dividend yield.
Is VEU better than VBK?
VEU has a lower expense ratio. VBK led over the full window, VEU over 1Y, 3Y and 5Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.