VBK vs VUG

Quick Verdict

VUG has a lower expense ratio. VBK delivered stronger 1-year returns. VBK offers more diversification with 542 holdings.

Lower Fees: VUGHigher Returns: VBKMore Diversified: VBK

Side-by-Side Comparison

MetricVBKVUGWinner
Expense Ratio0.05%0.03%
AUM$24.8B$223.2B
Dividend Yield0.57%0.47%
Holdings561155
YTD Return+17.71%+10.57%
1Y Return+29.45%+18.21%
3Y Return (annualized)+16.91%+24.26%
5Y Return (annualized)+5.29%+13.05%
Volatility (annualized)19.6%16.5%
Max Drawdown-59.4%-51.4%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
InceptionJan 26, 2004Jan 26, 2004

VBK vs VUG Performance

Vanguard Small Cap Growth ETF (VBK) is a ETF from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VBK returned +29.45% while VUG returned +18.21%. Year to date, VBK is up 17.71% versus a gain of 10.57% for VUG.

Over three years, VBK compounded at +16.91% per year against +24.26% for VUG; over five years the annualized figures are +5.29% and +13.05% respectively. Across the full 23-year window we track, VUG has the edge at +11.30% annualized vs +9.41%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VBK has been the more volatile fund, with annualized monthly volatility of 19.6% 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 -59.4% for VBK 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 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VBK charges 0.05% per year while VUG charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, VBK currently yields 0.57% against 0.47% for VUG.

Holdings Overlap

0.5%overlap

VBK and VUG share 9 holdings out of 679 unique holdings combined, representing a 0.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VBKWeight in VUGDifference
ALAB1.02%0.12%0.90%
TPL0.35%0.06%0.29%
ASTS0.35%0.05%0.30%
FSLRProProPro
INSMProProPro
BURLProProPro
EQTProProPro
TKOProProPro
CSGPProProPro
See all 9 holdings VBK shares with VUG
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, VBK or VUG?

VBK has an expense ratio of 0.05% while VUG charges 0.03%. VUG is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, VBK or VUG?

Over the past year VBK returned +29.45% vs +18.21% for VUG, so VBK leads on 1-year performance. Over the longest common window we track (23 years), VBK annualized +9.41% vs +11.30% for VUG. Past performance does not guarantee future results.

Which is riskier, VBK or VUG?

VBK has been the more volatile fund at 19.6% annualized versus 16.5% for VUG. Worst drawdown: VBK -59.4% vs VUG -51.4%.

Should I hold both VBK and VUG?

VBK and VUG have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VBK and VUG?

VBK and VUG share 9 common holdings with a 0.5% weight overlap. Combined, they hold 679 unique securities.

Which pays a higher dividend, VBK or VUG?

VBK yields 0.57% while VUG yields 0.47%, so VBK currently pays the higher dividend yield.

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