ETF Versus

VB vs VGT

Vanguard Small-Cap Index Fund ETF Shares vs Vanguard Information Technology 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
VGT

Vanguard Information Technology Index Fund ETF Shares (VGT) is an exchange-traded fund that provides exposure to us sector - technology securities. It charges a low expense ratio of 0.09%. The fund offers a modest dividend yield of 0.43%. Launched in 2004, the fund has a 22-year track record.

AUM: $102.6B ER: 0.09% Yield: 0.43% Since: Jan 26, 2004

Quick Verdict

VB has a slightly lower expense ratio (0.03% vs 0.09%), saving about $119 per $10,000 over 10 years. Over the past year, VGT has significantly outperformed with a 29.2% return vs 18.4%. Income investors may prefer VB for its higher yield (1.3% vs 0.4%).

Key Metrics

Metric VB VGT
Expense Ratio 0.03% 0.09%
Dividend Yield 1.3% 0.4%
Fund Family Vanguard N/A
Category US Small Cap US Sector - Technology

Performance Chart

Indexed to 100 at start (5-year comparison)

75 103 131 159 187 215 2021-04 2022-06 2023-09 2024-12 2026-04
VB +20.7%
VGT +89.7%

Performance Comparison

Period VB VGT Difference
1 Month -5.50% -3.71% -1.79%
3 Months +0.71% -6.53% +7.24%
6 Months +2.15% -6.49% +8.64%
YTD +0.71% -6.53% +7.24%
1 Year +18.40% +29.20% -10.80%
3 Years +39.02% +83.56% -44.54%
5 Years +20.71% +89.73% -69.02%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period VB Fees VGT Fees You Save
$10.000 10 years $60 $179 $119
$10.000 20 years $258 $771 $512
$10.000 30 years $835 $2.486 $1.650
$50.000 10 years $299 $896 $597
$50.000 30 years $4.176 $12.428 $8.252
$100.000 30 years $8.352 $24.855 $16.503

Risk Metrics

Based on 5 years of daily returns

Metric VB VGT
Annualized Volatility 20.8% 25.1%
Max Drawdown -28.8% -35.5%
Sharpe Ratio 0.07 0.46

Dividend Comparison

Metric VB VGT
Annual Dividend (per share) $3.50 $3.06
Dividend Yield 1.33% 0.43%
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%

VGT Top Holdings

NameWeight
NVIDIA CorporationNVDA18.07%
Apple Inc.AAPL15.84%
Microsoft CorporationMSFT10.39%
Broadcom Inc.AVGO4.34%
Micron Technology, Inc.MU2.37%
Advanced Micro Devices, Inc.AMD1.65%
Cisco Systems, Inc.CSCO1.63%
Palantir Technologies Inc.PLTR1.57%
Applied Materials, Inc.AMAT1.54%
Lam Research CorporationLRCX1.53%

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 VGT if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose VB if...

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

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