VBK vs VWO
Vanguard Small Cap Growth ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VBK has a lower expense ratio. VBK delivered stronger 1-year returns. VWO offers more diversification with 3982 holdings.
Side-by-Side Comparison
| Metric | VBK | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.06% | |
| AUM | $24.8B | $122.3B | |
| Dividend Yield | 0.57% | 2.37% | |
| Holdings | 561 | 6,334 | |
| YTD Return | +17.71% | +10.22% | |
| 1Y Return | +29.45% | +22.27% | |
| 3Y Return (annualized) | +16.91% | +17.07% | |
| 5Y Return (annualized) | +5.29% | +6.56% | |
| Volatility (annualized) | 19.6% | 20.1% | |
| Max Drawdown | -59.4% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Mar 4, 2005 |
VBK vs VWO Performance
Vanguard Small Cap Growth ETF (VBK) is a ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VBK returned +29.45% while VWO returned +22.27%. Year to date, VBK is up 17.71% versus a gain of 10.22% for VWO.
Over three years, VBK compounded at +16.91% per year against +17.07% for VWO; over five years the annualized figures are +5.29% and +6.56% respectively. Across the full 21-year window we track, VBK has the edge at +9.41% annualized vs +4.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 19.6% for VBK. 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 -68.3% for VWO. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VBK charges 0.05% per year while VWO charges 0.06%. On a $10,000 position that is $5 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, VBK currently yields 0.57% against 2.37% for VWO.
Holdings Overlap
VBK and VWO share 1 holdings out of 4523 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VBK | Weight in VWO | Difference |
|---|---|---|---|
| EAT | 0.20% | 0.01% | 0.19% |
Frequently Asked Questions
Which is cheaper, VBK or VWO?
VBK has an expense ratio of 0.05% while VWO charges 0.06%. VBK is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VBK or VWO?
Over the past year VBK returned +29.45% vs +22.27% for VWO, so VBK leads on 1-year performance. Over the longest common window we track (21 years), VBK annualized +9.41% vs +4.99% for VWO. Past performance does not guarantee future results.
Which is riskier, VBK or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 19.6% for VBK. Worst drawdown: VBK -59.4% vs VWO -68.3%.
Should I hold both VBK and VWO?
VBK and VWO have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBK and VWO?
VBK and VWO share 1 common holdings with a 0.0% weight overlap. Combined, they hold 4523 unique securities.
Which pays a higher dividend, VBK or VWO?
VBK yields 0.57% while VWO yields 2.37%, so VWO currently pays the higher dividend yield.
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