ETF Versus

VB vs VIG

Vanguard Small-Cap Index Fund ETF Shares vs Vanguard Dividend Appreciation 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
VIG Vanguard

Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 1.60%. Launched in 2006, the fund has a 20-year track record.

AUM: $97.2B ER: 0.04% Yield: 1.60% Since: Apr 21, 2006

Quick Verdict

Both funds have nearly identical expense ratios (0.03% vs 0.04%), so fees are not a differentiator here. Over the past year, VB has significantly outperformed with a 18.4% return vs 11.4%.

Key Metrics

Metric VB VIG
Expense Ratio 0.03% 0.04%
Dividend Yield 1.3% 1.6%
Fund Family Vanguard Vanguard
Category US Small Cap US Dividend

Performance Chart

Indexed to 100 at start (5-year comparison)

75 91 107 123 139 155 2021-04 2022-06 2023-09 2024-12 2026-04
VB +20.7%
VIG +43.7%

Performance Comparison

Period VB VIG Difference
1 Month -5.50% -5.05% -0.45%
3 Months +0.71% -2.23% +2.94%
6 Months +2.15% -0.97% +3.12%
YTD +0.71% -2.23% +2.94%
1 Year +18.40% +11.38% +7.02%
3 Years +39.02% +39.10% -0.08%
5 Years +20.71% +43.71% -23.00%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period VB Fees VIG Fees You Save
$10.000 10 years $60 $80 $20
$10.000 20 years $258 $344 $86
$10.000 30 years $835 $1.112 $277
$50.000 10 years $299 $399 $100
$50.000 30 years $4.176 $5.560 $1.385
$100.000 30 years $8.352 $11.121 $2.769

Risk Metrics

Based on 5 years of daily returns

Metric VB VIG
Annualized Volatility 20.8% 14.3%
Max Drawdown -28.8% -21.5%
Sharpe Ratio 0.07 0.27

Dividend Comparison

Metric VB VIG
Annual Dividend (per share) $3.50 $3.45
Dividend Yield 1.33% 1.60%
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%

VIG Top Holdings

NameWeight
Broadcom Inc.AVGO5.92%
Apple Inc.AAPL3.89%
Eli Lilly and CompanyLLY3.70%
Microsoft CorporationMSFT3.45%
JPMorgan Chase & Co.JPM3.42%
Exxon Mobil CorporationXOM2.87%
Johnson & JohnsonJNJ2.65%
Walmart Inc.WMT2.48%
Visa Inc.V2.23%
Costco Wholesale CorporationCOST1.98%

Which One Should You Choose?

Choose VB if...

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

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