VBR vs VO
Vanguard Morningstar Small-Cap Value ETF vs Vanguard Morningstar Mid-Cap ETF
Quick Verdict
VO has a lower expense ratio. VBR delivered stronger 1-year returns. VBR offers more diversification with 847 holdings.
Side-by-Side Comparison
| Metric | VBR | VO | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $37.3B | $106.6B | |
| Dividend Yield | 1.76% | 1.32% | |
| Holdings | 847 | 289 | |
| YTD Return | +16.29% | +13.55% | |
| 1Y Return | +20.42% | +15.07% | |
| 3Y Return (annualized) | +16.08% | +16.39% | |
| 5Y Return (annualized) | +9.49% | +7.55% | |
| Volatility (annualized) | 19.0% | 16.9% | |
| Max Drawdown | -64.0% | -60.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Jan 26, 2004 |
VBR vs VO Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) is a ETF from Vanguard (US) and Vanguard Morningstar Mid-Cap ETF (VO) is a ETF from Vanguard (US). Over the past year VBR returned +20.42% while VO returned +15.07%. Year to date, VBR is up 16.29% versus a gain of 13.55% for VO.
Over three years, VBR compounded at +16.08% per year against +16.39% for VO; over five years the annualized figures are +9.49% and +7.55% respectively. Across the full 23-year window we track, VO has the edge at +9.18% 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 16.9% for VO. 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 -60.3% for VO. 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VBR charges 0.05% per year while VO 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 1.32% for VO.
Holdings Overlap
VBR and VO share 21 holdings out of 1093 unique holdings combined, representing a 2.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VBR or VO?
VBR has an expense ratio of 0.05% while VO charges 0.03%. VO is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VBR or VO?
Over the past year VBR returned +20.42% vs +15.07% for VO, so VBR leads on 1-year performance. Over the longest common window we track (23 years), VBR annualized +7.94% vs +9.18% for VO. Past performance does not guarantee future results.
Which is riskier, VBR or VO?
VBR has been the more volatile fund at 19.0% annualized versus 16.9% for VO. Worst drawdown: VBR -64.0% vs VO -60.3%.
Should I hold both VBR and VO?
VBR and VO have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VBR and VO?
VBR and VO share 21 common holdings with a 2.2% weight overlap. Combined, they hold 1093 unique securities.
Which pays a higher dividend, VBR or VO?
VBR yields 1.76% while VO yields 1.32%, so VBR currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.