Relative Intelligence · US Small-Cap Equity
How Vanguard Morningstar Small-Cap ETF (VB) compares with the whole market and its popular alternatives
Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VB alone. It places VB (Vanguard Morningstar Small-Cap ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VB stands in the market, and of the alternatives worth a closer look.
Period covered: VB's full trading record, from January 2004 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 22, 2026.
Data as of October 22, 2026. Full tables and charts read best on a larger screen.
This page answers the following questions about VB
Key findings
Not AI-generatedThese key findings are generated by our proprietary relative intelligence engine, directly from the data on this page.
- Right nowOver the past 6 months, VB rose 2.1% against 8.0% for the S&P 500 and 7.8% for the Nasdaq 100. On the flip side, VB has bounced back 25.4% from its April 2025 low after a 25.4% loss from November 2024 to April 2025 after falling while the S&P 500 fell 16.4%. At a glance ↓
- Fund or market?VB fell 2.3% over the past 3 months, 3.3 points ahead of the US small-cap equity ETF IWM (iShares Russell 2000 ETF), which fell 5.6%. The S&P 500 rose 2.5%. Its similar funds did not move as one over the past 3 months: CALF (Pacer US Small Cap Cash Cows ETF) rose 12.3%, while IWM fell 5.6%.
- Long termVB turned $10,000 into $27,900 over the past decade, against $41,600 in the S&P 500. That said, it outpaced every one of its similar funds over the past decade, including IJR (iShares Core S&P Small-Cap ETF) and IWM (iShares Russell 2000 ETF). Growth of $10,000 ↓
- In a crashAcross six sell-offs, VB has typically fallen 1.3 times as far as the S&P 500. Crash tests ↓
- DiversificationAgainst the S&P 500, VB has a correlation of 0.87 over 5 years, more closely than 77% of ETFs with at least $100 million in assets. Next to an index fund it is more of the same, not a cushion. Market capture ↓
- Better options
- Popular alternatives
- VTI (Vanguard Morningstar Total Stock Market ETF) earned more than VB with less volatility over the past 5 years: 11.4% a year at 17.5% volatility, against 6.2% a year at 20.6%.
- Nearby categories and themes
- VOE (Vanguard Morningstar Mid-Cap Value ETF, mid-cap value) and JPME (JPMorgan Diversified Return U.S. Mid Cap Equity ETF, US mid-cap equity) earned more than VB with less volatility over the past 5 years. VOE returned 9.7% a year at 15.8% volatility, against 6.2% a year at 20.6%.
- Versus the S&P 500
- Simply owning the S&P 500 would have done better over the past 5 years: 12.5% a year at 17.2% volatility, against 6.2% at 20.6% for VB.
How much would $10,000 in VB have grown?
This chart tracks a hypothetical $10,000 investment in VB over the past 22 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VB over the same span and VB's popular alternatives, among those that traded for the entire period. A second view covers the past 5 years, the period the better options further down the page are judged on. It shows not only where each investment ended up but also how smooth or uneven the path was.
Note: VB began trading on January 30, 2004, so the chart cannot reach back to the dot-com bust. It covers the most recent 22 years of VB's record, starting at the end of September 2004.
- $10,000 invested in VB at the end of September 2004 would have grown to $75,500 by September 2026, less than the $102,174 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of VB, and VTI finished highest, at $103,071.
Choose a period
From the end of September 2004 to the end of September 2026. Hover over a fund in the key to pick out its line. 645 of the 1,489 stocks and funds worth at least $500 million that traded the whole period ended ahead of VB; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.
- VTI$103,071+931% total · +11.2% a year
- SPY (S&P 500)$102,174+922% total · +11.1% a year
- JNJ$87,426+774% total · +10.4% a year
- SLYG$86,474+765% total · +10.3% a year
- VO$86,371+764% total · +10.3% a year
- VBK$83,161+732% total · +10.1% a year
- VB$75,500+655% total · +9.6% a year
- VBR$70,630+606% total · +9.3% a year
- SLYV$68,652+587% total · +9.2% a year
- IWN$55,927+459% total · +8.1% a year
From the end of September 2021 to the end of September 2026. Hover over a fund in the key to pick out its line. 1,749 of the 3,630 stocks and funds worth at least $500 million that traded the whole period ended ahead of VB; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.
- SPY (S&P 500)$19,000+90.0% total · +13.7% a year
- VTI$18,064+80.6% total · +12.6% a year
- QUAL$17,879+78.8% total · +12.3% a year
- AVUV$16,960+69.6% total · +11.1% a year
- XMHQ$16,081+60.8% total · +10.0% a year
- VOE$15,656+56.6% total · +9.4% a year
- VBR$15,178+51.8% total · +8.7% a year
- IWN$14,375+43.8% total · +7.5% a year
- VO$14,310+43.1% total · +7.4% a year
- VB$14,020+40.2% total · +7.0% a year
VB at a glance
This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout. These figures serve as the baseline for every comparison that follows.
Note: VB began trading on January 30, 2004, so every figure here, including its worst decline, covers only the time since then. None of them reflect the dot-com bust.
- VB's deepest decline since it began trading in 2004 was 60.1%, from July 2007 to March 2009. It took 22 months from the low to climb back to its old high.
- Over 21 full calendar years, VB's best was 2013, when it returned 37.7%, and its worst was 2008, when it lost 36.2%. It lost money in six of those years.
- VB is 6.4% below its all-time high.
The fund
- Issuer
- Vanguard
- Began trading
- January 2004
- Expense ratio
- 0.03%per year
- Assets
- $176B
- Category
- Broad Market
Returns
- Past 1 year
- +15.1%total return
- Past 3 years
- +68.6%+19.0% a year
- Past 5 years
- +35.2%+6.2% a year
- Past 10 years
- +179%+10.8% a year
- Best calendar year
- +37.7%2013
- Worst calendar year
- −36.2%2008
- Losing years
- 6 of 21full calendar years
Risk
- Volatility
- 20.6%typical yearly swing, 5 years
- Sharpe ratio
- 0.40return per unit of risk, 5 years
- Worst decline ever
- −60.1%Jul 2007 to Mar 2009
- From its all-time high
- −6.4%below the peak
VB against the whole market
Where VB ranks among every stock and fund, and what across the market has done better.
How does VB rank among all ETFs?
This section ranks VB on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history. Where the comparisons with its popular alternatives show how VB stacks up against its peers, these rankings show where it stands in the market as a whole.
- VB lands in the broad middle of the market on every measure here. VB's 1-year return ranks in the top 34% of the 2,488 ETFs with at least $100 million in assets with 1 year of history.
Ranked against U.S.-listed ETFs with at least $100M in assets that have enough history for each measure, so the count changes from row to row; smaller ETFs and leveraged funds are left out. Lower volatility and smaller declines rank higher.
| Measure | VB | Rank | Standing |
|---|---|---|---|
| 1-year return | +15.1% | 854 of 2,488 | top 34% |
| 3-year return | +68.6% | 819 of 1,950 | top 42% |
| 5-year return | +35.2% | 929 of 1,563 | bottom 42% |
| 10-year return | +179% | 349 of 958 | top 36% |
| Volatility, 5 years | 20.6% | 1,156 of 1,563 | bottom 27% |
| Sharpe ratio, 5 years | 0.40 | 1,089 of 1,563 | bottom 31% |
| Worst decline, past 10 years | −42.0% | 610 of 951 | bottom 37% |
What has beaten VB on both return and risk?
Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer). VB sits where the dashed lines cross. Anything in the green box above and to the left earned more than VB with smaller swings, a better trade-off over this period on both counts. Past results are no promise, but a name in the box is worth a closer look.
- 28 stocks and 393 ETFs worth at least $500 million sit in the green region: each earned more than VB over the past 5 years with smaller price swings. That is 12% of the 3,641 screened.
- Among those with at least half VB's swings, LVHI has the best return for its risk: 16.9% a year at 11.1% volatility, 46% less than VB's 20.6%, and a Sharpe ratio (return above cash per unit of volatility) of 1.48 against 0.40 for VB. DXJ earned the most, 26.6% a year, while still swinging less than VB (19.1% against 20.6%).
- Among VB's popular alternatives, VTI, QUAL and VBR are in the region. VTI earned 11.4% a year against 6.2% a year for VB, at 17.5% volatility, 15% less than VB's 20.6%.
Annual return is the annualized total return with dividends reinvested, and volatility the annualized swing in daily prices, both over 5 years. Labeled dots are the strongest picks from the table below and the names called out above, colored by how close they sit to VB; faint dots are 91 more of the 421 in the green region (the strongest, one per fund family). 3,641 stocks and funds worth at least $500 million were screened. Hover over a dot for its figures.
- Popular alternatives
- Same and neighboring categories, and shared themes
- The whole market
- Others in the green region
Is there a better investment than VB?
Investments that beat VB over the past 5 years on return, volatility, drawdowns, consistency, crash losses or fees, from its popular alternatives out to the whole market.
- Among VB's popular alternatives, VTI earned more than VB with less volatility over the past 5 years: 11.4% a year at 17.5% volatility, against 6.2% a year at 20.6%.
- Looking beyond its popular alternatives, VOE (mid-cap value) and JPME (US mid-cap equity) earned more than VB with less volatility over the past 5 years. VOE returned 9.7% a year at 15.8% volatility, against 6.2% a year at 20.6%.
- Simply owning the S&P 500 would have done better over the past 5 years: 12.5% a year at 17.2% volatility, against 6.2% at 20.6% for VB.
How this works
The table below lists investments that beat VB over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio. It checks VB's popular alternatives first, then the rest of its own and neighboring categories, then every stock and fund worth at least $500 million, and shows the strongest few in each group. The full list of those with a higher return and lower volatility than VB follows the table.
Annual return is the annualized total return with dividends reinvested. Annual return, volatility and the Sharpe ratio cover 5 years; the worst decline covers the past 10 years. Green marks a better figure than VB's. "On the frontier" means no other option shown or tested earned more with less volatility. Funds that hold the same thing are shown once. Beyond the popular alternatives, nothing with more than 1.5× VB's volatility counts as better.
These figures cover the past 5 years. Green marks a better figure than VB's.
| Investment | Why it is better | Past 5 years | Downside | Long run | Fit | ||||
|---|---|---|---|---|---|---|---|---|---|
| Annual return?higher is better | Volatility?lower is calmer | Sharpe?return per unit of risk | Worst decline?past 10 years | 10Y returntotal | Corr. with VB?lower diversifies more | Expenseper year | |||
| VBVanguard Morningstar Small-Cap ETF · this page | +6.2% | 20.6% | 0.40 | −42.0% | +179% | 1.00 | 0.03% | ||
 SPYState Street SPDR S&P 500 ETF · S&P 500 | +12.5% | 17.2% | 0.78 | −33.7% | +316% | 0.87 | 0.09% | ||
| Popular alternativesbest 3 shownThe investments people most often weigh against VB. 7 of 25 passed at least one test. | |||||||||
 VTIVanguard Morningstar Total Stock Market ETF · US Total Market | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +11.4% | 17.5% | 0.71 | −35.0% | +298% | 0.90 | 0.03% | |
AVUVAvantis U.S. Small Cap Value ETF · US Small-Cap Value | Higher return, similar volatilityHigher return in most periods | +10.7% | 22.1% | 0.57 | −49.4% | — | 0.94 | 0.25% | |
 VOVanguard Morningstar Mid-Cap ETF · US Mid-Cap Equity | Higher return in most periods | +6.8% | 17.6% | 0.46 | −39.4% | +199% | 0.97 | 0.03% | |
| Same and neighboring categories, and shared themesbest 6 shownEverything else in US Small-Cap Equity and the categories next to it (US Small-Cap Value, Systematic Core Equity, US Small-Cap Growth, US Mid-Cap Equity), plus VB's specific themes. 38 of 80 passed at least one test. | |||||||||
XMHQInvesco S&P MidCap Quality ETF · US Mid-Cap Equity | Higher return, similar volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +9.6% | 20.5% | 0.55 | −36.9% | +241% | 0.92 | 0.30% | |
VOEVanguard Morningstar Mid-Cap Value ETF · Mid-Cap Value | Higher return, lower volatilityHigher return in most periods | +9.7% | 15.8% | 0.67 | −43.2% | +185% | 0.92 | 0.05% | |
JPMEJPMorgan Diversified Return U.S. Mid Cap Equity ETF · US Mid-Cap Equity | Higher return, lower volatilityHigher return in most periods | +8.1% | 16.0% | 0.57 | −41.0% | +185% | 0.95 | 0.24% | |
KJANInnovator U.S. Small Cap Power Buffer ETF - January · US Small-Cap Equity | Higher return, lower volatilityHigher Sharpe, smaller worst decline | +7.5% | 13.0% | 0.62 | −28.9% | — | 0.96 | 0.79% | |
SMLFiShares U.S. Small-Cap Equity Factor ETF · Systematic Core Equity | Higher return, similar volatilityHigher return in most periods | +9.9% | 21.0% | 0.56 | −41.9% | +202% | 0.99 | 0.15% | |
SMMViShares MSCI USA Small-Cap Min Vol Factor ETF · US Small-Cap Equity | Similar return, lower volatility | +5.9% | 13.4% | 0.49 | −38.8% | +127% | 0.88 | 0.20% | |
| The whole marketbest 8 shownEvery other stock and fund worth at least $500 million. 808 of 3,561 passed at least one test. | |||||||||
 JNJJohnson & Johnson · Pharmaceuticals | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +13.5% | 18.0% | 0.80 | −27.4% | +209% | 0.28 | — | |
 KOThe Coca-Cola Company · Nonalcoholic Beverages | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +15.2% | 16.8% | 0.93 | −37.0% | +205% | 0.27 | — | |
 VTVVanguard Morningstar Value ETF · US Large-Cap Value | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +12.2% | 13.7% | 0.91 | −36.8% | +237% | 0.89 | 0.03% | |
 VIGVanguard Dividend Appreciation ETF · Dividend Growth | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +10.4% | 14.1% | 0.77 | −31.7% | +258% | 0.88 | 0.04% | |
 VYMVanguard High Dividend Yield ETF · High Dividend Yield | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +11.6% | 13.8% | 0.87 | −35.2% | +209% | 0.86 | 0.04% | |
 SCHDSchwab U.S. Dividend Equity ETF · US Dividend Equity | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +10.2% | 14.4% | 0.75 | −33.4% | +256% | 0.79 | 0.06% | |
 LINLinde plc · Chemicals | Higher return, similar volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +11.7% | 20.9% | 0.64 | −32.6% | +404% | 0.57 | — | |
FTCSFirst Trust Capital Strength ETF · US Quality Equity | Similar return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +6.5% | 13.3% | 0.54 | −31.9% | +191% | 0.79 | 0.53% | |
What these numbers mean for VB
- Annual return
- VB returned 6.2% a year over the past 5 years with dividends reinvested, against 12.5% a year for the S&P 500. At that pace, $10,000 became about $13,500. Annual return is the steady yearly rate that would produce the same total result, so investments held over the same span compare fairly. Guide: What is performance and return? →
- Volatility
- VB's volatility over the past 5 years was 20.6%, 1.2 times the S&P 500's 17.2%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VB's return lands within 20.6% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump. Guide: Understanding and measuring risk (volatility) →
- Sharpe ratio
- VB's Sharpe ratio over the past 5 years was 0.40, against 0.78 for the S&P 500, so VB earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings. Guide: Balancing reward with risk (Sharpe ratio) →
- Worst decline
- VB's worst fall from a peak to a low over the past 10 years was 42.0%, against 33.7% for the S&P 500. Losses and gains are not symmetric: climbing back from a 42.0% fall takes a 72.6% gain. Guide: Market crash risk and tail risk →
- Correlation
- Over the past 5 years, VB's monthly returns had a correlation of 0.87 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They move almost in lockstep, so holding both adds little diversification. In the table, the correlation column measures each option against VB instead: the lower it is, the more that option would diversify a VB holding. Guide: Correlation and diversification →
Show all 421 stocks and funds worth at least $500 million that earned more than VB with less volatility
Out of 3,641 tested over 5 years. The strongest 100 are listed, best first, with funds that hold the same thing listed once.
| # | Investment | Found in | Annual return | Volatility | Sharpe | Worst decline | 10Y return | Corr. with VB | Expense |
|---|---|---|---|---|---|---|---|---|---|
| 1 | JNJJohnson & Johnson · Pharmaceuticals | Whole market | +13.5% | 18.0% | 0.80 | −27.4% | +209% | 0.28 | — |
| 2 | KOThe Coca-Cola Company · Nonalcoholic Beverages | Whole market | +15.2% | 16.8% | 0.93 | −37.0% | +205% | 0.27 | — |
| 3 | VTVVanguard Morningstar Value ETF · US Large-Cap Value | Whole market | +12.2% | 13.7% | 0.91 | −36.8% | +237% | 0.89 | 0.03% |
| 4 | VIGVanguard Dividend Appreciation ETF · Dividend Growth | Whole market | +10.4% | 14.1% | 0.77 | −31.7% | +258% | 0.88 | 0.04% |
| 5 | VYMVanguard High Dividend Yield ETF · High Dividend Yield | Whole market | +11.6% | 13.8% | 0.87 | −35.2% | +209% | 0.86 | 0.04% |
| 6 | SCHDSchwab U.S. Dividend Equity ETF · US Dividend Equity | Whole market | +10.2% | 14.4% | 0.75 | −33.4% | +256% | 0.79 | 0.06% |
| 7 |  RSGRepublic Services, Inc. · Waste Management | Whole market | +14.1% | 18.6% | 0.80 | −34.0% | +461% | 0.33 | — |
| 8 |  WMWaste Management, Inc. · Waste Management | Whole market | +9.5% | 19.3% | 0.57 | −30.1% | +357% | 0.35 | — |
| 9 |  XLVState Street Health Care Select Sector SPDR ETF · Health Care Equity | Whole market | +8.4% | 15.3% | 0.60 | −28.4% | +208% | 0.57 | 0.08% |
| 10 | HDViShares Core High Dividend ETF · High Dividend Yield | Whole market | +13.3% | 13.0% | 1.03 | −37.0% | +177% | 0.66 | 0.08% |
| 11 | DGRWWisdomTree U.S. Quality Dividend Growth Fund · US Dividend Equity | Whole market | +11.7% | 14.0% | 0.87 | −32.0% | +271% | 0.87 | 0.28% |
| 12 | RWLInvesco S&P 500 Revenue ETF · US Large-Cap Equity | Whole market | +13.7% | 14.4% | 0.97 | −36.1% | +287% | 0.91 | 0.39% |
| 13 |  VOOVanguard S&P 500 ETF · US Large-Cap Equity | Whole market | +12.6% | 16.9% | 0.79 | −34.0% | +319% | 0.87 | 0.03% |
| 14 | IOOiShares Global 100 ETF · Global Equity | Whole market | +15.6% | 17.2% | 0.94 | −31.4% | +357% | 0.75 | 0.40% |
| 15 |  BRK-ABerkshire Hathaway Inc. · Insurance | Whole market | +13.5% | 17.2% | 0.83 | −30.4% | +281% | 0.50 | — |
| 16 | MOATVanEck Morningstar Wide Moat ETF · US Large-Cap Equity | Whole market | +9.5% | 18.4% | 0.59 | −33.3% | +278% | 0.87 | 0.46% |
| 17 | IWXiShares Russell Top 200 Value ETF · US Large-Cap Value | Whole market | +12.7% | 13.8% | 0.94 | −35.8% | +223% | 0.87 | 0.20% |
| 18 | LVHIFranklin International Low Volatility High Dividend Index ETF · International Dividend Equity | Whole market | +16.9% | 11.1% | 1.48 | −32.4% | +194% | 0.61 | 0.40% |
| 19 | PTLCPacer Trendpilot US Large Cap ETF · Tactical Equity | Whole market | +9.3% | 11.9% | 0.81 | −26.6% | +185% | 0.65 | 0.60% |
| 20 |  VEAVanguard FTSE Developed Markets ETF · Developed International Equity | Whole market | +9.1% | 16.9% | 0.60 | −35.8% | +152% | 0.79 | 0.03% |
| 21 | QUSState Street SPDR MSCI USA StrategicFactors ETF · US Multifactor Equity | Whole market | +11.1% | 14.2% | 0.81 | −33.8% | +276% | 0.88 | 0.15% |
| 22 | PTNQPacer Trendpilot 100 ETF · Tactical Asset Allocation | Whole market | +9.4% | 14.2% | 0.70 | −28.1% | +292% | 0.55 | 0.65% |
| 23 | EQLALPS Equal Sector Weight ETF · US Large-Cap Equity | Whole market | +13.4% | 14.5% | 0.94 | −34.2% | +385% | 0.90 | 0.19% |
| 24 | LGLVState Street SPDR US Large Cap Low Volatility Index ETF · US Low-Volatility Equity | Whole market | +7.8% | 13.0% | 0.64 | −36.6% | +205% | 0.79 | 0.12% |
| 25 | OUSAALPS Funds O’Shares U.S. Quality Dividend ETF · US Dividend Equity | Whole market | +9.5% | 13.4% | 0.75 | −33.1% | +189% | 0.79 | 0.48% |
| 26 |  VTVanguard Total World Stock ETF · Global Equity | Whole market | +10.1% | 16.2% | 0.68 | −34.2% | +220% | 0.89 | 0.06% |
| 27 |  ITOTiShares Core S&P Total U.S. Stock Market ETF · US Total Market | Whole market | +11.4% | 17.4% | 0.71 | −35.0% | +297% | 0.90 | 0.03% |
| 28 |  DYNFiShares U.S. Equity Factor Rotation Active ETF · US Multifactor Equity | Whole market | +14.4% | 17.5% | 0.86 | −34.7% | — | 0.87 | 0.26% |
| 29 | DFIVDimensional - International Value ETF · International Large-Cap Value | Whole market | +14.8% | 16.4% | 0.93 | −25.4% | — | 0.70 | 0.27% |
| 30 | AVLVAvantis U.S. Large Cap Value ETF · US Large-Cap Value | Whole market | +13.9% | 16.9% | 0.86 | −19.5% | — | 0.94 | 0.15% |
| 31 | SPHQInvesco S&P 500 Quality ETF · US Quality Equity | Whole market | +11.7% | 16.7% | 0.75 | −31.6% | +295% | 0.85 | 0.20% |
| 32 | EWJiShares MSCI Japan ETF · Japan Equity | Whole market | +9.3% | 18.7% | 0.57 | −33.1% | +129% | 0.72 | 0.49% |
| 33 |  RYRoyal Bank of Canada · Banks | Whole market | +17.5% | 18.2% | 0.98 | −40.0% | +361% | 0.67 | — |
| 34 | DBEFXtrackers MSCI EAFE Hedged Equity ETF · International Equity | Whole market | +12.9% | 13.8% | 0.95 | −32.5% | +204% | 0.78 | 0.35% |
| 35 | JQUAJPMorgan U.S. Quality Factor ETF · US Quality Equity | Whole market | +13.5% | 15.7% | 0.89 | −32.9% | — | 0.87 | 0.12% |
| 36 | VPLVanguard FTSE Pacific ETF · International Equity | Whole market | +9.3% | 18.6% | 0.57 | −33.9% | +138% | 0.74 | 0.07% |
| 37 |  GLDSPDR Gold Shares · Gold | Whole market | +17.1% | 19.0% | 0.93 | −26.4% | +206% | 0.15 | 0.40% |
| 38 |  MPLXMPLX Lp · Oil & Gas Midstream | Whole market | +24.0% | 18.8% | 1.25 | −75.2% | +337% | 0.53 | — |
| 39 | HDEFXtrackers MSCI EAFE High Dividend Yield Equity ETF · International Dividend Equity | Whole market | +12.9% | 14.2% | 0.93 | −36.4% | +135% | 0.60 | 0.09% |
| 40 | JMOMJPMorgan U.S. Momentum Factor ETF · US Momentum Equity | Whole market | +12.3% | 19.1% | 0.70 | −34.3% | — | 0.88 | 0.12% |
| 41 | FDLFirst Trust Morningstar Dividend Leaders Index Fund · High Dividend Yield | Whole market | +14.6% | 14.5% | 1.02 | −41.4% | +207% | 0.69 | 0.43% |
| 42 | IPACiShares Core MSCI Pacific ETF · International Equity | Whole market | +8.2% | 16.9% | 0.55 | −31.0% | +124% | 0.77 | 0.09% |
| 43 | RODMHartford Multifactor Developed Markets (ex-US) ETF · Developed International Equity | Whole market | +10.6% | 13.5% | 0.82 | −36.0% | +142% | 0.74 | 0.29% |
| 44 | IHEiShares U.S. Pharmaceuticals ETF · Pharmaceuticals | Whole market | +12.9% | 16.8% | 0.81 | −29.6% | +157% | 0.51 | 0.37% |
| 45 | FFLCFidelity Fundamental Large Cap Core ETF · Active Core Equity | Whole market | +15.5% | 16.8% | 0.94 | −19.7% | — | 0.87 | 0.38% |
| 46 | IUSInvesco RAFI Strategic US ETF · US Total Market | Whole market | +14.7% | 14.9% | 1.00 | −34.7% | — | 0.90 | 0.19% |
| 47 | INFLHorizon Kinetics Inflation Beneficiaries ETF · Global Equity | Whole market | +11.6% | 17.8% | 0.71 | −21.3% | — | 0.72 | 0.85% |
| 48 | FDLOFidelity Low Volatility Factor ETF · US Low-Volatility Equity | Whole market | +9.7% | 13.0% | 0.78 | −34.4% | +249% | 0.79 | 0.15% |
| 49 | ATOAtmos Energy Corporation · Gas Utilities | Whole market | +15.9% | 18.5% | 0.90 | −32.9% | +207% | 0.53 | — |
| 50 | DBJPXtrackers MSCI Japan Hedged Equity ETF · Japan Equity | Whole market | +20.9% | 19.3% | 1.09 | −31.3% | +339% | 0.57 | 0.45% |
| 51 | IGROiShares International Dividend Growth ETF · International Dividend Equity | Whole market | +9.2% | 13.9% | 0.70 | −36.3% | +144% | 0.70 | 0.15% |
| 52 | DUSADavis Select U.S. Equity ETF · Concentrated Equity | Whole market | +11.5% | 18.4% | 0.69 | −36.7% | — | 0.87 | 0.59% |
| 53 | FTXHFirst Trust Nasdaq Pharmaceuticals ETF · Pharmaceuticals | Whole market | +12.3% | 16.9% | 0.77 | −32.1% | +155% | 0.57 | 0.60% |
| 54 | HLALWahed FTSE USA Shariah ETF · Faith-Based Equity | Whole market | +13.6% | 18.0% | 0.80 | −33.6% | — | 0.79 | 0.50% |
| 55 | DOLWisdomTree True Developed International Fund · International Dividend Equity | Whole market | +12.4% | 15.6% | 0.83 | −36.0% | +139% | 0.69 | 0.48% |
| 56 | NTSXWisdomTree U.S. Efficient Core Fund · Balanced Allocation | Whole market | +8.1% | 17.2% | 0.54 | −31.4% | — | 0.86 | 0.20% |
| 57 | FDRRFidelity Dividend ETF for Rising Rates · US Dividend Equity | Whole market | +12.7% | 15.0% | 0.88 | −36.5% | +264% | 0.84 | 0.15% |
| 58 | IDHQInvesco S&P International Developed Quality ETF · International Equity | Whole market | +9.8% | 17.9% | 0.61 | −33.6% | +184% | 0.74 | 0.29% |
| 59 | DGTState Street SPDR Global Dow ETF · Global Equity | Whole market | +13.9% | 15.1% | 0.95 | −34.4% | +260% | 0.82 | 0.50% |
| 60 | SIXAETC 6 Meridian Mega Cap Equity ETF · US Large-Cap Equity | Whole market | +12.9% | 12.7% | 1.02 | −18.4% | — | 0.82 | 0.31% |
| 61 | DXJWisdomTree Japan Hedged Equity Fund · Japan Equity | Whole market | +26.6% | 19.1% | 1.34 | −39.1% | +415% | 0.47 | 0.48% |
| 62 | USMViShares MSCI USA Min Vol Factor ETF · US Low-Volatility Equity | Whole market | +7.7% | 12.3% | 0.66 | −33.1% | +179% | 0.76 | 0.15% |
| 63 | AEEAmeren Corporation · Electric Utilities | Whole market | +8.2% | 19.4% | 0.50 | −29.1% | +199% | 0.42 | — |
| 64 | VSLUApplied Finance Valuation Large Cap ETF · US Large-Cap Value | Whole market | +13.7% | 16.2% | 0.88 | −23.8% | — | 0.83 | 0.49% |
| 65 | SFYSoFi Select 500 ETF · US Large-Cap Growth | Whole market | +13.7% | 19.4% | 0.76 | −33.3% | — | 0.84 | 0.19% |
| 66 | DJDInvesco Dow Jones Industrial Average Dividend ETF · High Dividend Yield | Whole market | +12.5% | 13.3% | 0.95 | −34.7% | +233% | 0.79 | 0.07% |
| 67 | NXTGFirst Trust Indxx NextG ETF · Technology Equity | Whole market | +16.1% | 19.1% | 0.88 | −33.6% | +323% | 0.67 | 0.70% |
| 68 | PJPInvesco Pharmaceuticals ETF · Pharmaceuticals | Whole market | +11.3% | 16.6% | 0.73 | −34.0% | +139% | 0.57 | 0.58% |
| 69 | PWVInvesco Large Cap Value ETF · US Large-Cap Value | Whole market | +13.7% | 14.2% | 0.98 | −37.6% | +226% | 0.83 | 0.55% |
| 70 | LGHHCM Defender 500 Index ETF · Tactical Asset Allocation | Whole market | +9.2% | 16.7% | 0.61 | −29.6% | — | 0.79 | 1.00% |
| 71 | PKWInvesco BuyBack Achievers ETF · US Buyback Equity | Whole market | +10.7% | 17.3% | 0.68 | −40.9% | +261% | 0.92 | 0.63% |
| 72 | FEXFirst Trust Large Cap Core AlphaDEX Fund · Multifactor Equity | Whole market | +10.1% | 16.5% | 0.67 | −39.5% | +237% | 0.96 | 0.57% |
| 73 | IMCBiShares Morningstar Mid-Cap ETF · US Mid-Cap Equity | Same or nearby category | +8.3% | 17.5% | 0.55 | −41.0% | +201% | 0.97 | 0.04% |
| 74 | CFAVictoryShares US 500 Volatility Wtd ETF · US Low-Volatility Equity | Whole market | +7.5% | 15.0% | 0.56 | −37.7% | +203% | 0.94 | 0.39% |
| 75 | SDCIUSCF SummerHaven Dynamic Commodity Strategy No K-1 Fund · Broad Commodities | Whole market | +21.1% | 18.4% | 1.14 | −45.7% | — | 0.10 | 0.80% |
| 76 |  SLFSun Life Financial Inc. · Life Insurance | Whole market | +11.9% | 19.4% | 0.68 | −50.8% | +260% | 0.63 | — |
| 77 |  XLFState Street Financial Select Sector SPDR ETF · Financial Sector Equity | Whole market | +8.7% | 18.3% | 0.55 | −42.9% | +245% | 0.82 | 0.08% |
| 78 | TPYPTortoise North American Pipeline ETF · Energy Infrastructure | Whole market | +17.2% | 17.3% | 1.01 | −51.9% | +188% | 0.65 | 0.40% |
| 79 | FNDFSchwab Fundamental International Large Company Index ETF · International Large-Cap Equity | Whole market | +13.6% | 16.3% | 0.87 | −40.2% | +193% | 0.72 | 0.25% |
| 80 | VYMIVanguard International High Dividend Yield ETF · International Dividend Equity | Whole market | +13.2% | 14.8% | 0.92 | −40.0% | +174% | 0.69 | 0.07% |
| 81 | LLoews Corporation · Property & Casualty Insurance | Whole market | +15.0% | 19.2% | 0.83 | −48.5% | +190% | 0.57 | — |
| 82 | AVDVAvantis International Small Cap Value ETF · International Equity | Whole market | +13.6% | 17.4% | 0.82 | −43.0% | — | 0.73 | 0.36% |
| 83 | RDVYFirst Trust Rising Dividend Achievers ETF · Dividend Growth | Whole market | +11.3% | 18.8% | 0.67 | −40.6% | +321% | 0.94 | 0.47% |
| 84 | EVRGEvergy, Inc. · Electric Utilities | Whole market | +9.9% | 19.0% | 0.60 | −38.8% | +113% | 0.51 | — |
| 85 | PJULInnovator U.S. Equity Power Buffer ETF · US Equity Buffer | Whole market | +10.4% | 8.6% | 1.20 | −18.2% | — | 0.85 | 0.79% |
| 86 | FDVVFidelity High Dividend ETF · High Dividend Yield | Whole market | +13.4% | 14.6% | 0.94 | −40.2% | +255% | 0.86 | 0.15% |
| 87 | FJANFT Vest U.S. Equity Buffer ETF - January · US Equity Buffer | Whole market | +11.0% | 10.5% | 1.04 | −13.6% | — | 0.81 | 0.85% |
| 88 | POCTInnovator U.S. Equity Power Buffer ETF · Moderate Buffer | Whole market | +9.9% | 8.0% | 1.22 | −18.8% | — | 0.82 | 0.79% |
| 89 | BBCAJPMorgan BetaBuilders Canada ETF · International Equity | Whole market | +11.5% | 16.7% | 0.74 | −42.8% | — | 0.84 | 0.19% |
| 90 | FNDESchwab Fundamental Emerging Markets Large Company Index ETF · Emerging Markets Equity | Whole market | +9.8% | 17.0% | 0.64 | −39.9% | +144% | 0.51 | 0.39% |
| 91 |  JEPIJPMorgan Equity Premium Income ETF · Covered Call Income | Whole market | +7.3% | 11.0% | 0.70 | −13.7% | — | 0.80 | 0.35% |
| 92 |  EDConsolidated Edison, Inc. · Electric Utilities | Whole market | +12.7% | 18.9% | 0.73 | −30.9% | +123% | 0.25 | — |
| 93 | DOCTFT Vest U.S. Equity Deep Buffer ETF - October · Deep Buffer | Whole market | +8.2% | 7.4% | 1.10 | −9.9% | — | 0.79 | 0.85% |
| 94 | EMLPFirst Trust North American Energy Infrastructure Fund · Energy Infrastructure | Whole market | +15.2% | 14.5% | 1.06 | −43.6% | +155% | 0.72 | 0.95% |
| 95 | CHTChunghwa Telecom Co., Ltd. · Integrated Telecommunications | Whole market | +8.2% | 13.3% | 0.66 | −23.8% | +104% | 0.28 | — |
| 96 | VOEVanguard Morningstar Mid-Cap Value ETF · Mid-Cap Value | Same or nearby category | +9.7% | 15.8% | 0.67 | −43.2% | +185% | 0.92 | 0.05% |
| 97 | FTSFortis Inc. · Electric Utilities | Whole market | +9.5% | 16.5% | 0.63 | −34.3% | +162% | 0.43 | — |
| 98 |  SOThe Southern Company · Electric Utilities | Whole market | +12.3% | 18.9% | 0.71 | −38.4% | +178% | 0.23 | — |
| 99 | AVEMAvantis Emerging Markets Equity ETF · Emerging Markets Equity | Whole market | +9.0% | 19.5% | 0.54 | −36.0% | — | 0.60 | 0.33% |
| 100 | WTVWisdomTree U.S. Value Fund · US Value Equity | Whole market | +13.6% | 17.0% | 0.84 | −42.2% | +306% | 0.94 | 0.12% |
VB against its popular alternatives
The investments people most often weigh against VB, compared period by period and year by year.
How do VB's risk and return compare with its alternatives?
This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings. Investments toward the upper left earned more for a smoother ride, and those toward the lower right earned less for a rougher one. The dashed lines cross at VB, which divides the map into what did better or worse on each measure.
- Six of the 21 popular alternatives, led by VTI, QUAL and VBR, were both more rewarding and calmer than VB over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, VB returned 6.2% a year, less than the S&P 500's 12.5%, with higher volatility (20.6% against 17.2%).
Green points earned more than VB with less volatility; red points earned less with more. Hover over a point for its figures. Total returns with dividends reinvested, annualized.
All figures
| Investment | Annual return | Volatility |
|---|---|---|
| SPY S&P 500State Street SPDR S&P 500 ETF | +12.5% | 17.2% |
| VTI Vanguard Morningstar Total Stock Market ETF | +11.4% | 17.5% |
| QUAL iShares MSCI USA Quality Factor ETF | +11.2% | 17.3% |
| AVUV Avantis U.S. Small Cap Value ETF | +10.7% | 22.1% |
| DFAT Dimensional - US Targeted Value ETF | +9.7% | 21.0% |
| VBR Vanguard Morningstar Small-Cap Value ETF | +8.5% | 19.4% |
| CALF Pacer US Small Cap Cash Cows ETF | +7.6% | 23.1% |
| DFAS Dimensional - US Small Cap ETF | +7.2% | 20.5% |
| IWN iShares Russell 2000 Value ETF | +7.0% | 21.1% |
| FNDA Schwab Fundamental U.S. Small Company Index ETF | +6.9% | 20.6% |
| VO Vanguard Morningstar Mid-Cap ETF | +6.8% | 17.6% |
| SLYV State Street SPDR S&P 600 Small Cap Value ETF | +6.5% | 21.5% |
| VB This pageVanguard Morningstar Small-Cap ETF | +6.2% | 20.6% |
| SCHA Schwab U.S. Small-Cap ETF | +6.0% | 22.0% |
| VIOO Vanguard S&P Small-Cap 600 ETF | +5.8% | 21.1% |
| SMDV ProShares S&P SmallCap 600 Dividend Aristocrats ETF | +5.7% | 18.4% |
| VTWO Vanguard Russell 2000 ETF | +5.5% | 22.4% |
| IWM iShares Russell 2000 ETF | +5.3% | 22.4% |
| CSB VictoryShares US Small Cap High Div Volatility Wtd ETF | +5.3% | 18.5% |
| SLYG State Street SPDR S&P 600 Small Cap Growth ETF | +4.9% | 21.4% |
| VSS Vanguard FTSE All-World ex-US Small-Cap ETF | +4.7% | 16.7% |
| IWO iShares Russell 2000 Growth ETF | +3.4% | 24.6% |
| VBK Vanguard Morningstar Small-Cap Growth ETF | +2.9% | 23.8% |
Has VB consistently beaten its popular alternatives?
This section compares VB with the investments people most often weigh against it, checking each one over eight periods from one month to ten years. Counting how often an alternative earned more than VB helps separate lasting outperformance from a single strong stretch.
- Five of the 26 popular alternatives, led by QUAL, VO and VTI, outperformed VB in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- QUAL and VO outperformed VB in every long-term period and in all but one short-term period, the most consistent record in the group.
- VTI, QUAL and DFAT earned more for the risk they took than VB (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.
A green cell means the alternative earned more than VB over that period. "Qualified" marks those that did so in at least 3 of 5 short-term periods and 2 of 3 long-term periods.
| Investment | Periods outperformed | Short term | Long term | Risk · 5 years | Fund | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1M | 3M | 6M | YTD | 1Y | 3Y | 5Y | 10Y | Volatilitylower is calmer | Sharpehigher is better | Worst declinepast 10 years | Expense | Assets | Overlapsame sectors | ||
| VB Vanguard Morningstar Small-Cap ETF (this page) | — | −1.0% | −2.3% | +2.1% | +11.4% | +15.1% | +68.6% | +35.2% | +179% | 20.6% | 0.40 | −42.0% | 0.03% | $176B | — |
| QUAL QualifiediShares MSCI USA Quality Factor ETF | 5/5 short3/3 longAll-weather | +0.7% | +3.5% | +8.8% | +13.4% | +16.3% | +76.1% | +69.8% | +290% | 17.3% | 0.70 | −34.1% | 0.15% | $48B | 72% |
| VO QualifiedVanguard Morningstar Mid-Cap ETF | 4/5 short3/3 longAll-weather | +1.3% | +1.3% | +6.8% | +12.3% | +13.2% | +70.7% | +39.0% | +199% | 17.6% | 0.46 | −39.4% | 0.03% | $217B | 88% |
| VTI QualifiedVanguard Morningstar Total Stock Market ETF | 3/5 short3/3 long | −1.4% | +1.9% | +7.3% | +12.4% | +15.3% | +87.3% | +71.5% | +298% | 17.5% | 0.71 | −35.0% | 0.03% | $2.3T | 73% |
| AVUV QualifiedAvantis U.S. Small Cap Value ETF | 4/5 short2/3 long | +0.4% | −2.7% | +4.0% | +19.5% | +26.0% | +72.9% | +66.2% | — | 22.1% | 0.57 | −49.4% | 0.25% | $31B | 64% |
| IWN QualifiediShares Russell 2000 Value ETF | 3/5 short2/3 long | −1.6% | −3.6% | +4.2% | +17.9% | +22.0% | +76.6% | +40.3% | +148% | 21.1% | 0.43 | −46.1% | 0.24% | $14B | 77% |
| VBR Broad MarketVanguard Morningstar Small-Cap Value ETF | 5/5 short1/3 long | +1.6% | −0.5% | +5.3% | +14.3% | +18.6% | +70.2% | +50.2% | +172% | 19.4% | 0.52 | −45.3% | 0.05% | $64B | 86% |
| CALF Broad MarketPacer US Small Cap Cash Cows ETF | 5/5 short1/3 long | +6.6% | +12.3% | +21.8% | +31.3% | +36.5% | +53.1% | +44.0% | — | 23.1% | 0.43 | −47.5% | 0.59% | $3.7B | 66% |
| DFAT Broad MarketDimensional - US Targeted Value ETF | 5/5 short1/3 long | +1.2% | −1.5% | +5.2% | +16.7% | +22.1% | +67.9% | +59.2% | — | 21.0% | 0.55 | −26.1% | 0.33% | $30B | 71% |
| SLYV Broad MarketState Street SPDR S&P 600 Small Cap Value ETF | 4/5 short1/3 long | 0.0% | −3.4% | +3.8% | +16.1% | +20.9% | +65.5% | +36.7% | +154% | 21.5% | 0.40 | −47.7% | 0.15% | $4.7B | 81% |
| AVSC Broad MarketAvantis U.S. Small Cap Equity ETF | 4/5 short1/3 long | +0.1% | −2.2% | +5.6% | +21.2% | +24.5% | +76.6% | — | — | — | — | −28.4% | 0.25% | $3.1B | — |
| FNDA Broad MarketSchwab Fundamental U.S. Small Company Index ETF | 3/5 short1/3 long | −0.2% | −4.2% | +2.0% | +13.5% | +17.4% | +63.3% | +39.4% | +174% | 20.6% | 0.43 | −44.6% | 0.25% | $8.7B | 91% |
| DFAS Broad MarketDimensional - US Small Cap ETF | 3/5 short1/3 long | −0.5% | −2.3% | +3.1% | +13.1% | +17.0% | +64.4% | +41.4% | — | 20.5% | 0.44 | −26.1% | 0.31% | $34B | 87% |
| SCHA Broad MarketSchwab U.S. Small-Cap ETF | 2/5 short1/3 long | −2.9% | −4.9% | +1.9% | +14.3% | +18.5% | +75.2% | +33.9% | +164% | 22.0% | 0.38 | −42.4% | 0.03% | $21B | 92% |
| VTWO Broad MarketVanguard Russell 2000 ETF | 1/5 short1/3 long | −3.6% | −5.5% | +0.6% | +12.1% | +15.0% | +74.2% | +30.6% | +161% | 22.4% | 0.35 | −41.2% | 0.06% | $17B | 85% |
| IWM Broad MarketiShares Russell 2000 ETF | 1/5 short1/3 long | −3.7% | −5.6% | +0.6% | +12.0% | +14.8% | +73.3% | +29.4% | +157% | 22.4% | 0.34 | −41.1% | 0.19% | $75B | 85% |
| IJS Broad MarketiShares S&P Small-Cap 600 Value ETF | 4/5 short0/3 long | 0.0% | −3.5% | +3.8% | +16.0% | +20.5% | +65.3% | +36.0% | +152% | 21.5% | 0.40 | −47.7% | 0.18% | $7.5B | 82% |
| VIOO Broad MarketVanguard S&P Small-Cap 600 ETF | 3/5 short0/3 long | −0.6% | −4.5% | +3.0% | +15.2% | +18.3% | +63.7% | +32.5% | +166% | 21.1% | 0.37 | −44.1% | 0.07% | $6.1B | 89% |
| IJR Broad MarketiShares Core S&P Small-Cap ETF | 3/5 short0/3 long | −0.8% | −4.5% | +2.9% | +15.2% | +18.1% | +63.5% | +32.2% | +165% | 21.1% | 0.37 | −44.4% | 0.06% | $102B | 90% |
| SPSM Broad MarketState Street SPDR Portfolio S&P 600 Small Cap ETF | 3/5 short0/3 long | −0.7% | −4.6% | +3.0% | +15.2% | +18.3% | +63.7% | +32.7% | +164% | 21.1% | 0.38 | −42.9% | 0.03% | $16B | 89% |
| CSB Broad MarketVictoryShares US Small Cap High Div Volatility Wtd ETF | 3/5 short0/3 long | +3.3% | −2.5% | +3.1% | +12.7% | +15.5% | +53.6% | +29.3% | +152% | 18.5% | 0.37 | −42.1% | 0.40% | $234M | 55% |
| SMDV Dividend & IncomeProShares S&P SmallCap 600 Dividend Aristocrats ETF | 3/5 short0/3 long | +1.0% | −3.5% | +4.4% | +14.2% | +14.3% | +50.0% | +31.6% | +99.5% | 18.4% | 0.39 | −34.1% | 0.40% | $649M | 56% |
| SLYG Broad MarketState Street SPDR S&P 600 Small Cap Growth ETF | 1/5 short0/3 long | −1.6% | −5.8% | +1.8% | +14.0% | +15.4% | +60.2% | +26.9% | +168% | 21.4% | 0.33 | −41.9% | 0.15% | $4.8B | 95% |
| IJT Broad MarketiShares S&P Small-Cap 600 Growth ETF | 1/5 short0/3 long | −1.6% | −5.8% | +1.8% | +14.0% | +15.3% | +60.0% | +26.5% | +166% | 21.4% | 0.33 | −42.0% | 0.18% | $7.4B | 91% |
| VSS InternationalVanguard FTSE All-World ex-US Small-Cap ETF | 1/5 short0/3 long | −6.2% | −1.2% | −4.4% | +4.3% | +8.7% | +63.3% | +25.9% | +103% | 16.7% | 0.36 | −43.5% | 0.06% | $14B | 87% |
| VBK Broad MarketVanguard Morningstar Small-Cap Growth ETF | 0/5 short0/3 long | −4.4% | −4.7% | −2.2% | +7.4% | +10.3% | +65.8% | +15.4% | +173% | 23.8% | 0.24 | −38.7% | 0.05% | $43B | 82% |
| IWO Broad MarketiShares Russell 2000 Growth ETF | 0/5 short0/3 long | −5.7% | −7.6% | −3.0% | +6.4% | +8.2% | +69.6% | +18.0% | +156% | 24.6% | 0.26 | −42.0% | 0.24% | $13B | 82% |
How did VB do year by year?
This table shows each investment's total return in every full calendar year since 2005, along with where VB ranked among its popular alternatives each year. Annual results reveal how consistently each one kept pace with VB and how far its good and bad years diverged, detail that multiyear averages tend to smooth over.
Note: VB began trading on January 30, 2004, so the table starts with 2005, its first full calendar year, and cannot show how it fared during the dot-com bust.
- VB finished ahead of the S&P 500 in eight of its 21 full calendar years, and behind it in each of the last three.
- Among its popular alternatives, QUAL came out ahead of VB most often, in nine of the 12 years both traded.
- Ranked against its popular alternatives each year, VB finished in the top quarter in two of 21 years and in the bottom quarter in no. In 2025, it ranked 12 of 23.
Newest year first. Green marks a year in which the fund came out ahead of VB; gray means the two finished within a fraction of a point. The rank row places VB among the alternatives that traded the full year; dark green is the top quarter and red the bottom quarter.
| Investment | Years ahead of VB | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| VB This pageVanguard Morningstar Small-Cap ETF | — | +8.9% | +14.2% | +18.2% | −17.5% | +17.6% | +19.2% | +27.3% | −9.3% | +16.3% | +18.4% | −3.8% | +7.6% | +37.7% | +18.3% | −2.8% | +28.1% | +36.6% | −36.2% | 0.0% | +14.4% | +6.0% |
| Rank among alternatives | Top quarter in 2 of 21 | 12 of 23 | 6 of 23 | 11 of 23 | 12 of 22 | 14 of 20 | 8 of 20 | 6 of 19 | 9 of 19 | 7 of 18 | 12 of 18 | 9 of 16 | 6 of 16 | 9 of 14 | 4 of 14 | 7 of 14 | 5 of 12 | 5 of 10 | 5 of 10 | 6 of 10 | 6 of 10 | 6 of 10 |
| SPY S&P 500State Street SPDR S&P 500 ETF | 12 of 21 | +17.7% | +24.9% | +26.2% | −18.2% | +28.7% | +18.3% | +31.2% | −4.6% | +21.7% | +12.0% | +1.2% | +13.5% | +32.3% | +16.0% | +1.9% | +15.1% | +26.4% | −36.8% | +5.1% | +15.9% | +4.8% |
| QUAL iShares MSCI USA Quality Factor ETF | 9 of 12 | +12.7% | +22.3% | +30.9% | −20.5% | +26.9% | +17.0% | +33.9% | −5.7% | +22.3% | +9.2% | +5.4% | +11.7% | — | — | — | — | — | — | — | — | — |
| VO Vanguard Morningstar Mid-Cap ETF | 11 of 21 | +11.6% | +15.3% | +16.0% | −18.8% | +24.7% | +18.1% | +30.9% | −9.2% | +19.3% | +11.2% | −1.3% | +13.8% | +35.1% | +16.2% | −2.0% | +25.5% | +40.6% | −41.6% | +5.5% | +14.0% | +13.9% |
| VTI Vanguard Morningstar Total Stock Market ETF | 13 of 21 | +17.1% | +23.8% | +26.0% | −19.5% | +25.7% | +21.1% | +30.7% | −5.2% | +21.2% | +12.8% | +0.4% | +12.5% | +33.4% | +16.4% | +1.0% | +17.4% | +28.9% | −37.0% | +5.3% | +15.7% | +6.3% |
| AVUV Avantis U.S. Small Cap Value ETF | 3 of 6 | +7.4% | +9.3% | +22.8% | −4.9% | +42.2% | +6.4% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| IWN iShares Russell 2000 Value ETF | 6 of 21 | +12.4% | +7.6% | +14.6% | −14.8% | +28.0% | +4.7% | +22.0% | −13.0% | +7.7% | +32.0% | −7.7% | +4.1% | +34.3% | +18.1% | −5.8% | +24.7% | +20.5% | −28.8% | −10.3% | +23.5% | +4.4% |
| VBR Vanguard Morningstar Small-Cap Value ETF | 7 of 21 | +9.1% | +12.4% | +16.0% | −9.4% | +28.1% | +5.9% | +22.8% | −12.3% | +11.8% | +24.9% | −4.8% | +10.6% | +36.6% | +19.0% | −4.2% | +25.1% | +30.9% | −32.2% | −6.9% | +19.5% | +6.1% |
| CALF Pacer US Small Cap Cash Cows ETF | 3 of 8 | +2.3% | −7.4% | +35.4% | −15.2% | +40.7% | +16.6% | +18.1% | −10.0% | — | — | — | — | — | — | — | — | — | — | — | — | — |
| DFAT Dimensional - US Targeted Value ETF | 2 of 4 | +8.7% | +7.8% | +20.9% | −6.2% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| SLYV State Street SPDR S&P 600 Small Cap Value ETF | 7 of 21 | +6.5% | +7.3% | +14.8% | −11.1% | +30.6% | +2.6% | +24.3% | −12.8% | +11.8% | +31.2% | −6.5% | +6.9% | +40.7% | +17.3% | −1.7% | +24.7% | +37.0% | −33.9% | −4.6% | +19.8% | +2.9% |
| AVSC Avantis U.S. Small Cap Equity ETF | 2 of 3 | +9.4% | +7.8% | +19.3% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| FNDA Schwab Fundamental U.S. Small Company Index ETF | 5 of 12 | +7.5% | +9.0% | +20.3% | −14.9% | +31.1% | +8.7% | +24.3% | −11.3% | +13.6% | +24.6% | −4.3% | +8.5% | — | — | — | — | — | — | — | — | — |
| DFAS Dimensional - US Small Cap ETF | 1 of 4 | +8.2% | +10.2% | +17.8% | −13.9% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| SCHA Schwab U.S. Small-Cap ETF | 3 of 16 | +11.7% | +11.2% | +18.4% | −19.8% | +16.4% | +19.3% | +26.4% | −11.7% | +14.2% | +20.0% | −4.2% | +6.5% | +39.3% | +18.4% | −3.0% | +28.7% | — | — | — | — | — |
| VTWO Vanguard Russell 2000 ETF | 3 of 15 | +12.9% | +11.6% | +17.1% | −20.5% | +14.8% | +20.2% | +25.8% | −11.1% | +14.7% | +21.4% | −4.5% | +5.0% | +38.8% | +16.2% | −4.4% | — | — | — | — | — | — |
| IWM iShares Russell 2000 ETF | 5 of 21 | +12.7% | +11.4% | +16.8% | −20.5% | +14.5% | +20.0% | +25.4% | −11.1% | +14.6% | +21.6% | −4.5% | +5.0% | +38.7% | +16.7% | −4.4% | +26.9% | +28.5% | −34.2% | −1.8% | +18.3% | +4.5% |
| VIOO Vanguard S&P Small-Cap 600 ETF | 7 of 15 | +6.0% | +8.5% | +16.2% | −16.3% | +26.8% | +11.5% | +22.7% | −8.6% | +13.1% | +26.8% | −2.1% | +5.4% | +41.3% | +15.4% | +0.7% | — | — | — | — | — | — |
| CSB VictoryShares US Small Cap High Div Volatility Wtd ETF | 4 of 10 | +2.3% | +9.6% | +12.6% | −13.1% | +27.0% | +11.3% | +21.1% | −7.1% | +11.3% | +30.1% | — | — | — | — | — | — | — | — | — | — | — |
| SMDV ProShares S&P SmallCap 600 Dividend Aristocrats ETF | 4 of 10 | +0.3% | +7.0% | +9.0% | −5.9% | +19.0% | −4.8% | +17.2% | −0.5% | +4.6% | +35.6% | — | — | — | — | — | — | — | — | — | — | — |
| SLYG State Street SPDR S&P 600 Small Cap Growth ETF | 10 of 21 | +5.2% | +9.4% | +17.3% | −21.3% | +22.4% | +19.5% | +21.0% | −4.2% | +14.6% | +22.2% | +2.4% | +3.9% | +42.7% | +14.1% | +3.7% | +30.2% | +47.2% | −41.1% | +6.1% | +13.3% | +8.7% |
| VSS Vanguard FTSE All-World ex-US Small-Cap ETF | 4 of 16 | +29.6% | +2.9% | +15.6% | −21.5% | +13.1% | +11.8% | +21.4% | −18.5% | +30.6% | +4.2% | 0.0% | −5.1% | +16.6% | +20.8% | −19.6% | +25.6% | — | — | — | — | — |
| VBK Vanguard Morningstar Small-Cap Growth ETF | 12 of 21 | +8.5% | +16.5% | +21.4% | −28.4% | +5.7% | +35.4% | +32.7% | −5.7% | +21.9% | +10.9% | −2.6% | +4.0% | +38.3% | +17.8% | −1.6% | +31.0% | +42.8% | −40.3% | +9.9% | +12.2% | +8.6% |
| IWO iShares Russell 2000 Growth ETF | 9 of 21 | +12.9% | +15.0% | +18.5% | −26.3% | +2.5% | +34.7% | +28.5% | −9.4% | +22.3% | +11.7% | −1.3% | +5.9% | +43.3% | +14.8% | −3.0% | +29.4% | +34.6% | −38.5% | +6.9% | +13.2% | +4.0% |
Risk and diversification
How VB has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.
What were VB's worst declines?
A drawdown is the decline from a peak to the lowest point before a new high. This section presents VB's five deepest drawdowns since it began trading in 2004, alongside the S&P 500's return over the same dates, and how long each took to recover. Together, these figures show how much an investor could have lost and how long it took to get back to even.
Note: VB began trading on January 30, 2004, so this list cannot include the dot-com bust. The crash tests on this page show how older funds and the S&P 500 fared through those years.
- In all five of VB's worst declines, the S&P 500 held up better over the same dates.
- The slowest recovery came after VB fell 28.2% from November 2021 to June 2022; it did not regain that peak until July 2024, two years later.
Green means VB fell less than the S&P 500 over the same dates. Based on daily closing prices with dividends reinvested.
| During | VB fell | S&P 500, same dates | Peak | Low | Time to the low | Back at the peak | Time to recover |
|---|---|---|---|---|---|---|---|
| 2008 financial crisis | −60.1% | −54.5% | Jul 2007 | Mar 2009 | 20 months | Jan 2011 | 22 months |
| Covid crash | −42.0% | −33.4% | Feb 2020 | Mar 2020 | 1 month | Nov 2020 | 8 months |
| 2011 euro debt crisis | −28.3% | −18.6% | Apr 2011 | Oct 2011 | 6 months | Sep 2012 | 11 months |
| 2022 bear market | −28.2% | −21.3% | Nov 2021 | Jun 2022 | 7 months | Jul 2024 | 2.1 years |
| No named crash | −25.4% | −16.4% | Nov 2024 | Apr 2025 | 5 months | Sep 2025 | 5 months |
How did VB do in stock market crashes?
This section measures how far VB, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000. A smaller decline means an investment held up better, and comparing results across crashes shows whether that resilience was consistent or a one-off.
Note: VB began trading on January 30, 2004, so its row reads "Not yet trading" for the dot-com bust. The older alternatives and the S&P 500 show how those crashes played out.
- VB fell further than the S&P 500 in seven of the nine crashes it has traded through. The clearest case was the 2011 euro debt crisis, when VB fell 26.7% and the S&P 500 fell 17.9%.
- Among its popular alternatives, SMDV held up best, falling less than VB in all six crashes they both traded through.
Newest crash first. Each figure is the fund's deepest fall within the crash window; green means a smaller fall than VB.
| Investment | Held up better | 2023 regional bank crisisMar 2023 | 2022 bear marketJan 2022 | Covid crashFeb 2020 | Late-2018 sell-offSep 2018 | February 2018 volatility shockFeb 2018 | 2015 China and oil sell-offAug 2015 | 2011 euro debt crisisJul 2011 | 2010 flash crashMay 2010 | 2008 financial crisisOct 2007 | Dot-com bustMar 2000 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| VB This pageVanguard Morningstar Small-Cap ETF | — | −7.3% | −24.9% | −42.0% | −23.8% | −5.9% | −20.5% | −26.7% | −2.5% | −59.7% | Not yet trading |
| SPY S&P 500State Street SPDR S&P 500 ETF | 7 of 9 | −3.4% | −24.5% | −33.7% | −19.3% | −6.5% | −12.8% | −17.9% | −1.5% | −55.2% | −47.5% |
| QUAL iShares MSCI USA Quality Factor ETF | 4 of 6 | −3.3% | −27.5% | −34.1% | −20.5% | −6.1% | −11.2% | — | — | — | — |
| VO Vanguard Morningstar Mid-Cap ETF | 6 of 9 | −5.8% | −25.0% | −39.4% | −21.2% | −5.8% | −18.8% | −23.4% | −2.4% | −58.3% | — |
| VTI Vanguard Morningstar Total Stock Market ETF | 7 of 9 | −4.0% | −25.2% | −35.0% | −20.0% | −6.3% | −14.1% | −19.5% | −1.9% | −55.5% | — |
| AVUV Avantis U.S. Small Cap Value ETF | 1 of 3 | −9.3% | −20.0% | −46.9% | — | — | — | — | — | — | — |
| IWN iShares Russell 2000 Value ETF | 3 of 9 | −7.8% | −22.7% | −43.4% | −24.0% | −5.3% | −17.9% | −26.5% | −2.8% | −59.5% | — |
| VBR Vanguard Morningstar Small-Cap Value ETF | 4 of 9 | −8.1% | −20.4% | −44.8% | −23.0% | −5.5% | −17.3% | −25.9% | −2.6% | −60.2% | — |
| CALF Pacer US Small Cap Cash Cows ETF | 3 of 5 | −6.0% | −26.6% | −41.3% | −25.7% | −3.6% | — | — | — | — | — |
| DFAT Dimensional - US Targeted Value ETF | 1 of 2 | −8.7% | −19.4% | — | — | — | — | — | — | — | — |
| SLYV State Street SPDR S&P 600 Small Cap Value ETF | 4 of 9 | −7.7% | −22.1% | −43.6% | −26.1% | −4.9% | −16.3% | −25.4% | −2.9% | −59.6% | — |
| AVSC Avantis U.S. Small Cap Equity ETF | 0 of 1 | −7.9% | — | — | — | — | — | — | — | — | — |
| FNDA Schwab Fundamental U.S. Small Company Index ETF | 2 of 6 | −7.1% | −24.1% | −44.0% | −23.7% | −5.5% | −18.5% | — | — | — | — |
| DFAS Dimensional - US Small Cap ETF | 1 of 2 | −7.2% | −23.2% | — | — | — | — | — | — | — | — |
| SCHA Schwab U.S. Small-Cap ETF | 0 of 8 | −7.3% | −26.6% | −42.3% | −25.3% | −5.6% | −21.5% | −27.0% | −2.7% | — | — |
| VTWO Vanguard Russell 2000 ETF | 1 of 7 | −7.2% | −26.8% | −40.9% | −25.4% | −5.5% | −21.6% | −27.3% | — | — | — |
| IWM iShares Russell 2000 ETF | 2 of 9 | −7.1% | −26.8% | −40.8% | −25.7% | −5.5% | −21.5% | −27.2% | −2.9% | −58.4% | — |
| VIOO Vanguard S&P Small-Cap 600 ETF | 4 of 7 | −7.1% | −24.7% | −41.3% | −25.8% | −5.2% | −17.0% | −24.3% | — | — | — |
| CSB VictoryShares US Small Cap High Div Volatility Wtd ETF | 4 of 6 | −6.9% | −24.5% | −39.3% | −18.4% | −3.8% | −12.0% | — | — | — | — |
| SMDV ProShares S&P SmallCap 600 Dividend Aristocrats ETF | 6 of 6 | −5.9% | −16.7% | −33.3% | −13.5% | −4.8% | −8.8% | — | — | — | — |
| SLYG State Street SPDR S&P 600 Small Cap Growth ETF | 4 of 9 | −6.6% | −27.5% | −39.9% | −25.3% | −5.5% | −17.9% | −24.9% | −3.7% | −60.0% | — |
| VSS Vanguard FTSE All-World ex-US Small-Cap ETF | 5 of 8 | −3.0% | −31.7% | −38.2% | −18.4% | −5.8% | −16.5% | −26.8% | −1.5% | — | — |
| VBK Vanguard Morningstar Small-Cap Growth ETF | 3 of 9 | −6.1% | −32.8% | −38.7% | −25.2% | −6.0% | −24.1% | −27.7% | −2.7% | −58.7% | — |
| IWO iShares Russell 2000 Growth ETF | 3 of 9 | −6.5% | −33.8% | −39.8% | −27.6% | −5.6% | −25.5% | −27.7% | −2.9% | −57.6% | — |
How closely does VB move with the S&P 500?
Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell. An investment that captures more of the gains than the losses has compounded ahead of the market over time. This section compares VB with its popular alternatives on both measures, and on beta (how strongly each has moved with the market), over the past 10 years.
- Only VTI, QUAL and VO had a higher capture ratio (upside capture divided by downside capture) than VB's 0.80, out of 17 popular alternatives with the same record.
- QUAL took just 102% of the S&P 500's losses, against 120% for VB, while still keeping 98% of its gains.
- Over the past 10 years, VB captured 96% of the S&P 500's gains in rising months and 120% of its losses in falling months, with a beta of 1.13. Its share of the market's losses was larger than its share of the gains.
Monthly total returns over the past 10 years, measured against SPY. 100% capture or a beta of 1.00 means moving in line with the S&P 500. Green marks a better figure than VB's: more upside, less downside or a higher capture ratio. Sorted by capture ratio.
| Investment | Upside capture | Downside capture | Capture ratio | Beta |
|---|---|---|---|---|
| VB This pageVanguard Morningstar Small-Cap ETF | 96% | 120% | 0.80 | 1.13 |
| VTI Vanguard Morningstar Total Stock Market ETF | 100% | 103% | 0.97 | 1.02 |
| QUAL iShares MSCI USA Quality Factor ETF | 98% | 102% | 0.96 | 1.00 |
| VO Vanguard Morningstar Mid-Cap ETF | 91% | 109% | 0.84 | 1.05 |
| FNDA Schwab Fundamental U.S. Small Company Index ETF | 97% | 123% | 0.79 | 1.16 |
| SLYG State Street SPDR S&P 600 Small Cap Growth ETF | 93% | 119% | 0.79 | 1.11 |
| VBK Vanguard Morningstar Small-Cap Growth ETF | 99% | 125% | 0.79 | 1.17 |
| VBR Vanguard Morningstar Small-Cap Value ETF | 94% | 119% | 0.78 | 1.11 |
| SCHA Schwab U.S. Small-Cap ETF | 97% | 124% | 0.78 | 1.18 |
| VIOO Vanguard S&P Small-Cap 600 ETF | 95% | 122% | 0.78 | 1.13 |
| CSB VictoryShares US Small Cap High Div Volatility Wtd ETF | 85% | 110% | 0.78 | 0.98 |
| VTWO Vanguard Russell 2000 ETF | 98% | 128% | 0.77 | 1.17 |
| IWM iShares Russell 2000 ETF | 98% | 129% | 0.76 | 1.17 |
| IWO iShares Russell 2000 Growth ETF | 100% | 132% | 0.76 | 1.21 |
| IWN iShares Russell 2000 Value ETF | 95% | 126% | 0.75 | 1.14 |
| SLYV State Street SPDR S&P 600 Small Cap Value ETF | 96% | 128% | 0.75 | 1.16 |
| SMDV ProShares S&P SmallCap 600 Dividend Aristocrats ETF | 67% | 89% | 0.75 | 0.78 |
| VSS Vanguard FTSE All-World ex-US Small-Cap ETF | 80% | 107% | 0.74 | 0.94 |
What diversifies VB?
Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions). This section lists large ETFs and stocks whose returns have had a low correlation with VB's. Because such investments tend not to fall at the same time, pairing VB with them can reduce a portfolio's overall swings.
- Moving a fifth of the money in VB into DBMF would have cut the portfolio's volatility by 22% over the past 5 years and raised its annual return (+7.0% for VB alone, +8.1% for the mix).
- Among large ETFs, DXJ, XLE and GLD have moved largely independently of VB over the past 5 years, with correlations of 0.47 or lower, and each still earned a positive 5-year return.
- PPH made money in four of the six calendar years in which VB lost money.
Only ETFs with at least $1.0B in assets and stocks worth at least $10B, with a correlation below 0.5 over the past 5 years and a positive return, are included, ranked by Sharpe ratio; funds that hold the same thing are shown once. The year columns are the years in which VB lost money. The last two columns show a portfolio that is 80% VB and 20% the other investment, rebalanced monthly.
ETFs
| Investment | Correlation | 5Y return | Sharpe | 2022 | 2018 | 2015 | 2011 | 2008 | 2007 | 80/20 mix volatility | 80/20 mix annual return |
|---|---|---|---|---|---|---|---|---|---|---|---|
| VB Vanguard Morningstar Small-Cap ETF (this page) | 1.00 | +35.2% | 0.40 | −17.5% | −9.3% | −3.8% | −2.8% | −36.2% | 0.0% | 19.1% | +7.0% |
| DXJ InternationalWisdomTree Japan Hedged Equity Fund | 0.47 | +225% | 1.34 | +6.0% | −19.8% | +7.7% | −16.1% | −20.8% | −7.4% | 16.6% | +11.0% |
| XLE EnergyState Street Energy Select Sector SPDR ETF | 0.38 | +178% | 0.94 | +64.4% | −18.2% | −21.5% | +2.8% | −39.0% | +36.8% | 17.9% | +10.6% |
| GLD CommoditiesSPDR Gold Shares | 0.15 | +120% | 0.93 | −0.8% | −1.9% | −10.7% | +9.6% | +4.9% | +30.4% | 16.1% | +9.7% |
| DBA AlternativesInvesco DB Agriculture Fund | 0.21 | +66.7% | 0.81 | +2.5% | −8.7% | −17.2% | −10.7% | −19.1% | — | 15.9% | +8.1% |
| DBMF AlternativesiMGP DBi Managed Futures Strategy ETF | -0.20 | +57.5% | 0.80 | +21.6% | — | — | — | — | — | 15.0% | +8.1% |
| PPH HealthcareVanEck Pharmaceutical ETF | 0.49 | +72.9% | 0.78 | +2.6% | −5.9% | +3.5% | +15.5% | −19.9% | +2.9% | 16.8% | +8.0% |
| USO CommoditiesUnited States Oil Fund, LP | -0.02 | +180% | 0.74 | +29.0% | −19.6% | −46.0% | −2.3% | −56.3% | +46.8% | 16.9% | +11.4% |
| EPOL Broad MarketiShares MSCI Poland ETF | 0.46 | +125% | 0.70 | −24.6% | −13.8% | −23.2% | −32.1% | — | — | 18.5% | +9.9% |
Stocks
| Investment | Correlation | 5Y return | Sharpe | 2022 | 2018 | 2015 | 2011 | 2008 | 2007 | 80/20 mix volatility | 80/20 mix annual return |
|---|---|---|---|---|---|---|---|---|---|---|---|
| VB Vanguard Morningstar Small-Cap ETF (this page) | 1.00 | +35.2% | 0.40 | −17.5% | −9.3% | −3.8% | −2.8% | −36.2% | 0.0% | 19.1% | +7.0% |
| CAH Medical - DistributionCardinal Health, Inc. | 0.35 | +471% | 1.54 | +54.1% | −24.5% | +12.6% | +8.1% | −39.6% | −9.8% | 17.8% | +13.2% |
| CLS Hardware, Equipment & PartsCelestica Inc. | 0.46 | +2,780% | 1.43 | +1.3% | −16.3% | −6.0% | −24.4% | −20.5% | −25.7% | 23.1% | +25.1% |
| MCK Medical - DistributionMcKesson Corporation | 0.24 | +397% | 1.41 | +51.8% | −28.4% | −4.5% | +11.8% | −40.4% | +29.7% | 17.2% | +12.7% |
| MPC Oil & Gas Refining & MarketingMarathon Petroleum Corporation | 0.30 | +660% | 1.39 | +86.6% | −8.2% | +17.4% | — | — | — | 18.3% | +15.2% |
| PBR Oil & Gas IntegratedPetróleo Brasileiro S.A. - Petrobras | 0.18 | +721% | 1.32 | +55.4% | +27.7% | −41.1% | −32.1% | −55.6% | +132% | 18.1% | +15.1% |
Common questions
What was VB's worst drawdown?
VB's deepest decline since it began trading in 2004 was 60.1%, from July 2007 to March 2009. It took 22 months from the low to climb back to its old high. Because VB launched in January 2004, that record does not include the dot-com bust.
What were VB's best and worst years?
Over 21 full calendar years, VB's best year was 2013, when it returned 37.7%. Its worst was 2008, with a return of -36.2%.
Is there a better investment than VB?
Among VB's popular alternatives, VTI earned more than VB with less volatility over the past 5 years: 11.4% a year at 17.5% volatility, against 6.2% a year at 20.6%. Looking beyond its popular alternatives, VOE (mid-cap value) and JPME (US mid-cap equity) earned more than VB with less volatility over the past 5 years. VOE returned 9.7% a year at 15.8% volatility, against 6.2% a year at 20.6%.
Is VB more volatile than the S&P 500?
Yes. VB's volatility over the past 5 years was 20.6%, 1.2 times the S&P 500's 17.2%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VB's return lands within 20.6% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.
What is VB's Sharpe ratio?
VB's Sharpe ratio over the past 5 years was 0.40, against 0.78 for the S&P 500, so VB earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.
How correlated is VB with the S&P 500?
Over the past 5 years, VB's monthly returns had a correlation of 0.87 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They move almost in lockstep, so holding both adds little diversification. In the table, the correlation column measures each option against VB instead: the lower it is, the more that option would diversify a VB holding.
What are the best alternatives to VB?
Of the 26 popular alternatives we compared, five outperformed VB in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: QUAL, VO and VTI.
Did VB outperform the S&P 500?
VB finished ahead of the S&P 500 (SPY) in eight of 21 full calendar years. In 2025, it returned +8.9%, against +17.7% for the index.
How did VB do in stock market crashes?
VB fell less than the S&P 500 (SPY) in one of the nine major crashes it has traded through, and further in seven. The clearest case was the 2011 euro debt crisis, when VB fell 26.7% and the S&P 500 fell 17.9%.
What diversifies VB?
These had a low correlation with VB over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.47), XLE (correlation 0.38) and GLD (correlation 0.15); among large stocks, CAH (correlation 0.35), CLS (correlation 0.46) and MCK (correlation 0.24). A correlation near zero means the two have moved largely independently.
How we measure
- Short-term periods are 1M, 3M, 6M, YTD, 1Y; long-term periods are 3Y, 5Y, 10Y. An investment outperformed in a period when its total return, with dividends reinvested, was higher than VB's. Returns within 0.5 points or 3% of VB's, whichever is larger, count as a tie.
- "Qualified" means outperforming in at least 3 of 5 short-term periods and 2 of 3 long-term periods. "All-weather" means outperforming in every long-term period and all but one short-term period.
- Popular alternatives are the funds and stocks most often compared with this one. We include only those that trade today, are not leveraged or inverse, and hold at least $200 million.
- Volatility is the annualized standard deviation of daily returns over 5 years, a measure of how much the price typically swings in a year. The Sharpe ratio is the return above cash for each unit of that volatility.
- A decline, or drawdown, runs from a peak to the lowest close before the next high. The worst decline ever uses all the price history we have; comparisons between funds use the past 10 years so that younger funds are judged on the same stretch.
- Sector overlap is the share of assets two funds hold in the same sectors. Correlation and the mixed-portfolio figures use monthly returns.
- Upside and downside capture follow Morningstar's definition: the compound monthly return in the months the S&P 500 rose (or fell), divided by the S&P 500's compound return in those months. Beta measures how strongly monthly returns have moved with the S&P 500. All three use the same window for every investment.
- Figures are computed from daily adjusted prices and update after each trading day. Past performance does not predict future results.
More research
Popular alternatives to VB
QUALiShares MSCI USA Quality Factor ETF- VOVanguard Morningstar Mid-Cap ETF
- VTIVanguard Morningstar Total Stock Market ETF
VBRVanguard Morningstar Small-Cap Value ETF
IWMiShares Russell 2000 ETF
IJRiShares Core S&P Small-Cap ETF
VBKVanguard Morningstar Small-Cap Growth ETF
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