VBR vs VWO
Vanguard Morningstar Small-Cap Value ETF vs Vanguard FTSE Emerging Markets ETF
Which is better, VBR or VWO?
Small Cap Value against Large Cap Blend.
VBR has a lower expense ratio. VBR led over 1Y, 5Y and the full window, VWO over 3Y.
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 | VWO |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.06% |
| AUM | $37.3B | $122.0B |
| Dividend Yield | 1.76% | 2.29% |
| Holdings | 847 | 6,334 |
| YTD Return | +11.59%Best | +9.58% |
| 1Y Return | +14.95%Best | +13.53% |
| 3Y Return (annualized) | +16.27% | +18.27%Best |
| 5Y Return (annualized) | +8.87%Best | +6.44% |
| Volatility (annualized) | 19.3%Best | 20.1% |
| Max Drawdown | -64.0%Best | -68.3% |
| $10,000 over 5 years | $15,295Best | $13,662 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Blend |
| Inception | Jan 26, 2004 | Mar 4, 2005 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Sep 23, 2026 (21.5 years).
VBR vs VWO 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 21.5 years both funds cover.
VBR vs VWO Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) is an ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year VBR returned +14.95% while VWO returned +13.53%. Year to date, VBR is up 11.59% versus a gain of 9.58% for VWO.
Over three years, VBR compounded at +16.27% per year against +18.27% for VWO; over five years the annualized figures are +8.87% and +6.44% respectively. Across the full 22-year window we track, VBR has the edge at +7.37% annualized vs +4.93%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 19.3% for VBR. 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 -68.3% for VWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VBR charges 0.05% per year while VWO charges 0.06%. On a $10,000 position that is $5 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, VBR currently yields 1.76% against 2.29% for VWO.
Holdings Overlap
At least 0.2% of VBR's money is in holdings VWO also owns.
Stated as a floor: for VWO, our book for it covers 89.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 836 positions we hold weights for in VBR and 4,688 in VWO, against full books of 847 and 6,334.
Top Shared Holdings
| Stock | Weight in VBR | Weight in VWO | Difference |
|---|---|---|---|
| EGPEastgroup Properties Inc. Real Estate Investment Trust | 0.23% | 0.00% | 0.23% |
You are not choosing between two funds in isolation.
Whichever of VBR and VWO 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 VWO?
VBR has an expense ratio of 0.05% while VWO charges 0.06%. VBR is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VBR or VWO?
Over the past year VBR returned +14.95% vs +13.53% for VWO, so VBR leads on 1-year performance. Over the longest common window we track (22 years), VBR annualized +7.37% vs +4.93% for VWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBR or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 19.3% for VBR. Worst drawdown: VBR -64.0% vs VWO -68.3%.
Should I hold both VBR and VWO?
VBR and VWO have a monthly-return correlation of 0.69, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VBR or VWO?
VBR yields 1.76% while VWO yields 2.29%, so VWO currently pays the higher dividend yield.
Is VWO better than VBR?
VBR has a lower expense ratio. VBR led over 1Y, 5Y and the full window, VWO over 3Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.