VBR vs VEA
Vanguard Small Cap Value ETF vs Vanguard FTSE Developed Markets ETF
Quick Verdict
VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.
Side-by-Side Comparison
| Metric | VBR | VEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $36.9B | $230.9B | |
| Dividend Yield | 2.23% | 2.57% | |
| Holdings | 853 | 3,918 | |
| YTD Return | +17.75% | +16.14% | |
| 1Y Return | +28.74% | +29.87% | |
| 3Y Return (annualized) | +15.64% | +20.12% | |
| 5Y Return (annualized) | +10.13% | +10.27% | |
| Volatility (annualized) | 19.0% | 17.8% | |
| Max Drawdown | -64.0% | -62.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Jul 20, 2007 |
VBR vs VEA Performance
Vanguard Small Cap Value ETF (VBR) is a ETF from Vanguard (US) and Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US). Over the past year VBR returned +28.74% while VEA returned +29.87%. Year to date, VBR is up 17.75% versus a gain of 16.14% for VEA.
Over three years, VBR compounded at +15.64% per year against +20.12% for VEA; over five years the annualized figures are +10.13% and +10.27% respectively. Across the full 19-year window we track, VBR has the edge at +8.03% annualized vs +3.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 19.0% compared with 17.8% 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 -64.0% for VBR and -62.9% for VEA. 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 0.82. 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 2.23% against 2.57% for VEA.
Holdings Overlap
VBR and VEA share 4 holdings out of 3813 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VBR or VEA?
Over the past year VBR returned +28.74% vs +29.87% for VEA, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VBR annualized +8.03% vs +3.14% for VEA. Past performance does not guarantee future results.
Which is riskier, VBR or VEA?
VBR has been the more volatile fund at 19.0% annualized versus 17.8% for VEA. Worst drawdown: VBR -64.0% vs VEA -62.9%.
Should I hold both VBR and VEA?
VBR and VEA have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBR and VEA?
VBR and VEA share 4 common holdings with a 0.1% weight overlap. Combined, they hold 3813 unique securities.
Which pays a higher dividend, VBR or VEA?
VBR yields 2.23% while VEA yields 2.57%, so VEA currently pays the higher dividend yield.
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