VBR vs VIG
Vanguard Morningstar Small-Cap Value ETF vs Vanguard Dividend Appreciation ETF
Quick Verdict
VIG has a lower expense ratio. VBR delivered stronger 1-year returns. VBR offers more diversification with 847 holdings.
Side-by-Side Comparison
| Metric | VBR | VIG | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.04% | |
| AUM | $37.3B | $111.4B | |
| Dividend Yield | 1.76% | 1.49% | |
| Holdings | 847 | 335 | |
| YTD Return | +16.29% | +11.09% | |
| 1Y Return | +20.42% | +16.76% | |
| 3Y Return (annualized) | +16.08% | +16.24% | |
| 5Y Return (annualized) | +9.49% | +10.40% | |
| Volatility (annualized) | 19.0% | 13.3% | |
| Max Drawdown | -64.0% | -48.2% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Apr 21, 2006 |
VBR vs VIG Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) is a ETF from Vanguard (US) and Vanguard Dividend Appreciation ETF (VIG) is a ETF from Vanguard (US). Over the past year VBR returned +20.42% while VIG returned +16.76%. Year to date, VBR is up 16.29% versus a gain of 11.09% for VIG.
Over three years, VBR compounded at +16.08% per year against +16.24% for VIG; over five years the annualized figures are +9.49% and +10.40% respectively. Across the full 20-year window we track, VIG has the edge at +8.61% annualized vs +7.94%. 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 13.3% for VIG. 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 -48.2% for VIG. 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
VBR charges 0.05% per year while VIG 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 1.76% against 1.49% for VIG.
Holdings Overlap
VBR and VIG share 124 holdings out of 1042 unique holdings combined, representing a 4.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VBR or VIG?
VBR has an expense ratio of 0.05% while VIG charges 0.04%. VIG is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VBR or VIG?
Over the past year VBR returned +20.42% vs +16.76% for VIG, so VBR leads on 1-year performance. Over the longest common window we track (20 years), VBR annualized +7.94% vs +8.61% for VIG. Past performance does not guarantee future results.
Which is riskier, VBR or VIG?
VBR has been the more volatile fund at 19.0% annualized versus 13.3% for VIG. Worst drawdown: VBR -64.0% vs VIG -48.2%.
Should I hold both VBR and VIG?
VBR and VIG 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 VBR and VIG?
VBR and VIG share 124 common holdings with a 4.6% weight overlap. Combined, they hold 1042 unique securities.
Which pays a higher dividend, VBR or VIG?
VBR yields 1.76% while VIG yields 1.49%, so VBR currently pays the higher dividend yield.
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