VBR vs VTI
Vanguard Morningstar Small-Cap Value ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VBR delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | VBR | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $37.3B | $666.9B | |
| Dividend Yield | 1.76% | 1.07% | |
| Holdings | 847 | 3,543 | |
| YTD Return | +17.06% | +12.79% | |
| 1Y Return | +22.01% | +20.47% | |
| 3Y Return (annualized) | +17.17% | +21.53% | |
| 5Y Return (annualized) | +9.84% | +11.84% | |
| Volatility (annualized) | 19.0% | 15.3% | |
| Max Drawdown | -64.0% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | May 24, 2001 |
VBR vs VTI Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) is a ETF from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VBR returned +22.01% while VTI returned +20.47%. Year to date, VBR is up 17.06% versus a gain of 12.79% for VTI.
Over three years, VBR compounded at +17.17% per year against +21.53% for VTI; over five years the annualized figures are +9.84% and +11.84% respectively. Across the full 23-year window we track, VTI has the edge at +8.07% 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 15.3% for VTI. 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 -56.6% for VTI. 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 0.91. 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 VTI 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 1.07% for VTI.
Holdings Overlap
VBR and VTI share 652 holdings out of 2970 unique holdings combined, representing a 3.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VBR or VTI?
VBR has an expense ratio of 0.05% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VBR or VTI?
Over the past year VBR returned +22.01% vs +20.47% for VTI, so VBR leads on 1-year performance. Over the longest common window we track (23 years), VBR annualized +7.98% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, VBR or VTI?
VBR has been the more volatile fund at 19.0% annualized versus 15.3% for VTI. Worst drawdown: VBR -64.0% vs VTI -56.6%.
Should I hold both VBR and VTI?
VBR and VTI have a monthly-return correlation of 0.91, 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 VTI?
VBR and VTI share 652 common holdings with a 3.6% weight overlap. Combined, they hold 2970 unique securities.
Which pays a higher dividend, VBR or VTI?
VBR yields 1.76% while VTI yields 1.07%, so VBR currently pays the higher dividend yield.
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