VBR vs VO
Vanguard Morningstar Small-Cap Value ETF vs Vanguard Morningstar Mid-Cap ETF
Which is better, VBR or VO?
Small Cap Value against Mid Cap Blend.
VO has a lower expense ratio. VBR led over 1Y and 5Y, VO over 3Y and the full window. The two have moved almost in lockstep, correlation 0.95. VBR is less concentrated, with 5.9% of the fund in its ten largest positions against 9.1%.
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 | VO |
|---|---|---|
| Expense Ratio | 0.05% | 0.03%Best |
| AUM | $37.3B | $106.6B |
| Dividend Yield | 1.76% | 1.30% |
| Holdings | 847 | 289 |
| YTD Return | +12.02%Best | +10.11% |
| 1Y Return | +14.52%Best | +11.13% |
| 3Y Return (annualized) | +15.64% | +15.98%Best |
| 5Y Return (annualized) | +9.62%Best | +7.59% |
| Volatility (annualized) | 19.0% | 16.9%Best |
| Max Drawdown | -64.0% | -60.3%Best |
| $10,000 over 5 years | $15,829Best | $14,416 |
| Top 10 Weight | 5.9%Best | 9.1% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | Mid Cap Blend |
| Inception | Jan 26, 2004 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 18, 2026 (22.6 years).
VBR vs VO 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 22.6 years both funds cover.
VBR vs VO Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) is an ETF from Vanguard (US) and Vanguard Morningstar Mid-Cap ETF (VO) is an ETF from Vanguard (US). Over the past year VBR returned +14.52% while VO returned +11.13%. Year to date, VBR is up 12.02% versus a gain of 10.11% for VO.
Over three years, VBR compounded at +15.64% per year against +15.98% for VO; over five years the annualized figures are +9.62% and +7.59% respectively. Across the full 23-year window we track, VO has the edge at +9.01% annualized vs +7.75%.
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 what each fund did in the worst stretch of the window measured above.
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 1.30% for VO.
Holdings Overlap
4.2% of VBR's money is in holdings VO also owns. 2.1% of VO's money is in holdings VBR also owns.
VBR and VO share little of their money.
21 positions in common, counted across the 836 positions we hold weights for in VBR and 283 in VO, against full books of 847 and 289.
What only one of them owns
Our book lists 256 positions for VO that do not appear in our book for VBR (95.2% of the fund), and 783 for VBR that do not appear in VO (92.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VBR | Weight in VO | Difference |
|---|---|---|---|
| FLEX:SIFlex Ltd | 0.32% | 0.20% | 0.12% |
| STLDSteel Dynamics, Inc. | 0.34% | 0.17% | 0.17% |
| CNCCentene | 0.34% | 0.15% | 0.19% |
| QQnity Electronics Inc | 0.36% | 0.13% | 0.23% |
| NINisource Inc. | 0.24% | 0.10% | 0.14% |
| EQTEQT Corp. | 0.18% | 0.16% | 0.02% |
| DOWDow Inc. | 0.21% | 0.10% | 0.11% |
| LNTAlliant Energy Corp. | 0.21% | 0.09% | 0.12% |
| FTVFortive Corp. | 0.20% | 0.09% | 0.11% |
| GISGeneral Mills In | 0.20% | 0.09% | 0.11% |
You are not choosing between two funds in isolation.
Whichever of VBR and VO 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 VO?
VBR has an expense ratio of 0.05% while VO charges 0.03%. VO is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VBR or VO?
Over the past year VBR returned +14.52% vs +11.13% for VO, so VBR leads on 1-year performance. Over the longest common window we track (23 years), VBR annualized +7.75% vs +9.01% for VO. Past performance does not guarantee future results. This is information, not a recommendation.
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. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between VBR and VO?
4.2% of VBR's money is in holdings VO also owns. 2.1% of VO's is in holdings VBR also owns. They hold 21 positions in common, counted across the 836 positions we hold weights for in VBR and 283 in VO.
Which pays a higher dividend, VBR or VO?
VBR yields 1.76% while VO yields 1.30%, so VBR currently pays the higher dividend yield.
Is VO better than VBR?
VO has a lower expense ratio. VBR led over 1Y and 5Y, VO over 3Y and the full window. The two have moved almost in lockstep, correlation 0.95. VBR is less concentrated, with 5.9% of the fund in its ten largest positions against 9.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.