VBR vs VEA
Vanguard Morningstar Small-Cap Value ETF vs Vanguard FTSE Developed Markets ETF
Which is better, VBR or VEA?
Small Cap Value against Large Cap Blend.
VEA has a lower expense ratio. VBR led over the full window, VEA 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 | VBR | VEA |
|---|---|---|
| Expense Ratio | 0.05% | 0.03%Best |
| AUM | $37.3B | $230.3B |
| Dividend Yield | 1.76% | 2.49% |
| Holdings | 847 | 3,886 |
| YTD Return | +12.02% | +13.73%Best |
| 1Y Return | +14.52% | +21.98%Best |
| 3Y Return (annualized) | +15.64% | +19.84%Best |
| 5Y Return (annualized) | +9.62% | +10.22%Best |
| Volatility (annualized) | 20.0% | 17.7%Best |
| Max Drawdown | -62.3%Best | -62.9% |
| $10,000 over 5 years | $15,829 | $16,267Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Blend |
| Inception | Jan 26, 2004 | Jul 20, 2007 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 26, 2007 to Sep 18, 2026 (19.1 years).
VBR vs VEA 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 19.1 years both funds cover.
VBR vs VEA Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) is an ETF from Vanguard (US) and Vanguard FTSE Developed Markets ETF (VEA) is an ETF from Vanguard (US). Over the past year VBR returned +14.52% while VEA returned +21.98%. Year to date, VBR is up 12.02% versus a gain of 13.73% for VEA.
Over three years, VBR compounded at +15.64% per year against +19.84% for VEA; over five years the annualized figures are +9.62% and +10.22% respectively. Across the full 19-year window we track, VBR has the edge at +7.17% annualized vs +3.00%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 20.0% compared with 17.7% for VEA. 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 -62.3% for VBR and -62.9% for VEA. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VBR charges 0.05% per year while VEA 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, VBR currently yields 1.76% against 2.49% for VEA.
Holdings Overlap
At least 0.4% of VBR's money is in holdings VEA also owns.
Stated as a floor: for VEA, 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.
5 positions in common, counted across the 836 positions we hold weights for in VBR and 3,754 in VEA, against full books of 847 and 3,886.
You are not choosing between two funds in isolation.
Whichever of VBR and VEA 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, VBR or VEA?
VBR has an expense ratio of 0.05% while VEA charges 0.03%. VEA is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VBR or VEA?
Over the past year VBR returned +14.52% vs +21.98% for VEA, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VBR annualized +7.17% vs +3.00% for VEA. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBR or VEA?
VBR has been the more volatile fund at 20.0% annualized versus 17.7% for VEA. Worst drawdown: VBR -62.3% vs VEA -62.9%.
Should I hold both VBR and VEA?
VBR and VEA have a monthly-return correlation of 0.82, 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, VBR or VEA?
VBR yields 1.76% while VEA yields 2.49%, so VEA currently pays the higher dividend yield.
Is VEA better than VBR?
VEA has a lower expense ratio. VBR led over the full window, VEA over 1Y, 3Y and 5Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.