ETF Versus

VB vs VUG

Vanguard Small-Cap Index Fund ETF Shares vs Vanguard Growth Index Fund ETF Shares

Last updated: 2026-04-02

VB Vanguard

Vanguard Small-Cap Index Fund ETF Shares (VB) is an exchange-traded fund issued by Vanguard that provides exposure to small-cap U.S. equities with higher growth potential and volatility. It charges a very low expense ratio of 0.03%. The fund offers a moderate dividend yield of 1.33%. Launched in 2004, the fund has a 22-year track record.

AUM: $69.1B ER: 0.03% Yield: 1.33% Since: Jan 26, 2004
VUG Vanguard

Vanguard Growth Index Fund ETF Shares (VUG) is an exchange-traded fund issued by Vanguard that provides exposure to large-cap U.S. growth stocks with above-average earnings potential. It charges a very low expense ratio of 0.03%. The fund offers a modest dividend yield of 0.45%. Launched in 2004, the fund has a 22-year track record.

AUM: $179.8B ER: 0.03% Yield: 0.45% Since: Jan 26, 2004

Quick Verdict

Both funds have delivered similar 1-year returns (18.4% vs 18.0%), tracking closely. Income investors may prefer VB for its higher yield (1.3% vs 0.5%).

Key Metrics

Metric VB VUG
Expense Ratio 0.03% 0.03%
Dividend Yield 1.3% 0.5%
Fund Family Vanguard Vanguard
Category US Small Cap US Large Cap Growth

Performance Chart

Indexed to 100 at start (5-year comparison)

75 98 121 144 167 190 2021-04 2022-06 2023-09 2024-12 2026-04
VB +20.7%
VUG +66.0%

Performance Comparison

Period VB VUG Difference
1 Month -5.50% -4.47% -1.03%
3 Months +0.71% -9.18% +9.89%
6 Months +2.15% -8.28% +10.43%
YTD +0.71% -9.18% +9.89%
1 Year +18.40% +18.01% +0.39%
3 Years +39.02% +77.18% -38.16%
5 Years +20.71% +66.01% -45.30%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period VB Fees VUG Fees You Save
$10.000 10 years $60 $60 $0
$10.000 20 years $258 $258 $0
$10.000 30 years $835 $835 $0
$50.000 10 years $299 $299 $0
$50.000 30 years $4.176 $4.176 $0
$100.000 30 years $8.352 $8.352 $0

Risk Metrics

Based on 5 years of daily returns

Metric VB VUG
Annualized Volatility 20.8% 22.2%
Max Drawdown -28.8% -36.0%
Sharpe Ratio 0.07 0.37

Dividend Comparison

Metric VB VUG
Annual Dividend (per share) $3.50 $1.99
Dividend Yield 1.33% 0.45%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 9 holdings overlap (0% overlap in top holdings)

VB Top Holdings

NameWeight
Sandisk CorporationSNDK1.21%
Comfort Systems USA, Inc.FIX0.65%
Lumentum Holdings Inc.LITE0.64%
Ciena CorporationCIEN0.64%
Coherent Corp.COHR0.53%
Rocket Lab CorporationRKLB0.48%
NRG Energy, Inc.NRG0.44%
Bloom Energy CorporationBE0.43%
EMCOR Group, Inc.EME0.42%

VUG Top Holdings

NameWeight
NVIDIA CorporationNVDA12.82%
Apple Inc.AAPL12.23%
Microsoft CorporationMSFT9.15%
Alphabet Inc.GOOG4.49%
Meta Platforms, Inc.META4.44%
Amazon.com, Inc.AMZN4.41%
Broadcom Inc.AVGO3.95%
Tesla, Inc.TSLA3.58%
Eli Lilly and CompanyLLY2.82%

Which One Should You Choose?

Choose VB if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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