VB vs VWO
Vanguard Small-Cap Index Fund ETF Shares vs Vanguard Emerging Markets Stock Index Fund
Last updated: 2026-04-02
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.
Vanguard Emerging Markets Stock Index Fund (VWO) is an exchange-traded fund issued by Vanguard that provides exposure to stocks in emerging market economies with higher growth potential. It charges a low expense ratio of 0.06%. The fund offers an attractive dividend yield of 2.76%. Launched in 2005, the fund has a 21-year track record.
Quick Verdict
VB has a slightly lower expense ratio (0.03% vs 0.06%), saving about $60 per $10,000 over 10 years. Both funds have delivered similar 1-year returns (18.4% vs 19.4%), tracking closely. Income investors may prefer VWO for its higher yield (2.8% vs 1.3%).
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
0 of top 8 holdings overlap (0% overlap in top holdings)
VB Top Holdings
| Name | Weight |
|---|---|
| Sandisk CorporationSNDK | 1.21% |
| Comfort Systems USA, Inc.FIX | 0.65% |
| Lumentum Holdings Inc.LITE | 0.64% |
| Ciena CorporationCIEN | 0.64% |
| Coherent Corp.COHR | 0.53% |
| Rocket Lab CorporationRKLB | 0.48% |
| NRG Energy, Inc.NRG | 0.44% |
| Bloom Energy CorporationBE | 0.43% |
| EMCOR Group, Inc.EME | 0.42% |
VWO Top Holdings
| Name | Weight |
|---|---|
| Taiwan Semiconductor Manufacturing Company Limited!tpe/2330 | 12.71% |
| Tencent Holdings Limited!hkg/0700 | 3.44% |
| Alibaba Group Holding Limited!hkg/9988 | 2.74% |
| HDFC Bank Limited!nse/HDFCBANK | 0.93% |
| Reliance Industries Limited!nse/RELIANCE | 0.88% |
| Hon Hai Precision Industry Co., Ltd.!tpe/2317 | 0.78% |
| MediaTek Inc.!tpe/2454 | 0.76% |
| China Construction Bank Corporation!hkg/0939 | 0.75% |
Which One Should You Choose?
Choose VB if...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Choose VWO if...
you prioritize dividend income and want higher regular distributions from your portfolio.