VBR vs VEU
Vanguard Small Cap Value ETF vs Vanguard FTSE All World Ex US ETF
Quick Verdict
VEU has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 2818 holdings.
Side-by-Side Comparison
| Metric | VBR | VEU | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.04% | |
| AUM | $36.9B | $67.3B | |
| Dividend Yield | 2.23% | 2.54% | |
| Holdings | 853 | 3,921 | |
| YTD Return | +17.81% | +15.24% | |
| 1Y Return | +25.90% | +27.46% | |
| 3Y Return (annualized) | +16.12% | +20.06% | |
| 5Y Return (annualized) | +9.72% | +9.53% | |
| Volatility (annualized) | 19.0% | 17.7% | |
| Max Drawdown | -64.0% | -62.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Mar 2, 2007 |
VBR vs VEU Performance
Vanguard Small Cap Value ETF (VBR) is a ETF from Vanguard (US) and Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US). Over the past year VBR returned +25.90% while VEU returned +27.46%. Year to date, VBR is up 17.81% versus a gain of 15.24% for VEU.
Over three years, VBR compounded at +16.12% per year against +20.06% for VEU; over five years the annualized figures are +9.72% and +9.53% respectively. Across the full 19-year window we track, VBR has the edge at +8.02% annualized vs +3.58%. 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 17.7% 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 -64.0% for VBR and -62.8% for VEU. 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VBR 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, VBR currently yields 2.23% against 2.54% for VEU.
Holdings Overlap
VBR and VEU share 5 holdings out of 3622 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VBR or VEU?
VBR has an expense ratio of 0.05% while VEU charges 0.04%. VEU is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VBR or VEU?
Over the past year VBR returned +25.90% vs +27.46% for VEU, so VEU leads on 1-year performance. Over the longest common window we track (19 years), VBR annualized +8.02% vs +3.58% for VEU. Past performance does not guarantee future results.
Which is riskier, VBR or VEU?
VBR has been the more volatile fund at 19.0% annualized versus 17.7% for VEU. Worst drawdown: VBR -64.0% vs VEU -62.8%.
Should I hold both VBR and VEU?
VBR and VEU have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBR and VEU?
VBR and VEU share 5 common holdings with a 0.3% weight overlap. Combined, they hold 3622 unique securities.
Which pays a higher dividend, VBR or VEU?
VBR yields 2.23% while VEU yields 2.54%, so VEU currently pays the higher dividend yield.
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