VBR vs VOO
Vanguard Morningstar Small-Cap Value ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VBR delivered stronger 1-year returns. VBR offers more diversification with 847 holdings.
Side-by-Side Comparison
| Metric | VBR | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $37.3B | $997.4B | |
| Dividend Yield | 1.76% | 1.08% | |
| Holdings | 847 | 509 | |
| YTD Return | +16.97% | +12.73% | |
| 1Y Return | +21.92% | +20.59% | |
| 3Y Return (annualized) | +16.80% | +21.70% | |
| 5Y Return (annualized) | +9.69% | +12.87% | |
| Volatility (annualized) | 19.0% | 14.1% | |
| Max Drawdown | -64.0% | -34.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Sep 7, 2010 |
VBR vs VOO Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) is a ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VBR returned +21.92% while VOO returned +20.59%. Year to date, VBR is up 16.97% versus a gain of 12.73% for VOO.
Over three years, VBR compounded at +16.80% per year against +21.70% for VOO; over five years the annualized figures are +9.69% and +12.87% respectively. Across the full 16-year window we track, VOO has the edge at +13.47% annualized vs +7.98%. 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 14.1% for VOO. 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 -34.3% for VOO. 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VBR charges 0.05% per year while VOO 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 1.08% for VOO.
Holdings Overlap
VBR and VOO share 103 holdings out of 1237 unique holdings combined, representing a 2.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VBR or VOO?
VBR has an expense ratio of 0.05% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VBR or VOO?
Over the past year VBR returned +21.92% vs +20.59% for VOO, so VBR leads on 1-year performance. Over the longest common window we track (16 years), VBR annualized +7.98% vs +13.47% for VOO. Past performance does not guarantee future results.
Which is riskier, VBR or VOO?
VBR has been the more volatile fund at 19.0% annualized versus 14.1% for VOO. Worst drawdown: VBR -64.0% vs VOO -34.3%.
Should I hold both VBR and VOO?
VBR and VOO have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBR and VOO?
VBR and VOO share 103 common holdings with a 2.6% weight overlap. Combined, they hold 1237 unique securities.
Which pays a higher dividend, VBR or VOO?
VBR yields 1.76% while VOO yields 1.08%, so VBR currently pays the higher dividend yield.
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