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ETF Comparison

VB vs VO: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard Small Cap ETF and Vanguard Mid-Cap ETF covering yield, cost, risk, and income potential.

Data updated August 28, 2026

Best for

  • VBInvestors who want broad equity exposure.
  • VOInvestors who want broad equity exposure.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

VB has outpaced VO over the trailing twelve months, posting a 20.49% total return against 15.26%. The picture flips over 10 years, though — VO has compounded at 11.47% a year, ahead of VB at 11.01%. VO has been the steadier holding, though — annualized volatility of 14.7% against 18.9% for VB. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Jan 2004Volatility Sharpe Sortino Max drawdown
VB15.77%20.49%16.79%7.34%11.01%9.92%18.9%0.590.85-25.4%
VO13.55%15.26%16.88%7.52%11.47%10.36%14.7%0.761.09-19.0%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 28, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jan 2004” measures every fund from January 30, 2004 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricVBVO
Full nameVanguard Small Cap ETFVanguard Mid-Cap ETF
IssuerVanguardVanguard
Underlying indexCRSP US Small Cap IndexCRSP US Mid Cap Index
Last Close$300.75 as of August 28, 2026$82.50 as of August 28, 2026
Distribution yield1.19%1.24%
Distribution Safety Score™ 9597
Safety-Adjusted Yield 1.13%1.20%
Expense ratio0.03%0.03%
AUM$81.9B$108B
Distribution frequencyQuarterlyQuarterly
ObjectiveProvide exposure to the fund's underlying index or strategy per issuer materials.Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset classEquityEquity
Inception date01/26/200401/26/2004
Beta1.10.94
Last dividend$0.8920$0.2550
Ex-dividend date06/26/202606/26/2026

Bottom lineVB and VO are both for investors who want broad equity exposure — so strategy isn't the deciding factor here. Fees and payouts are close too, so it comes down to which your broker offers commission-free and any share-price or tax-lot preference.

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See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Vanguard
ETFs116
Total AUM$4683B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

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Quick verdict

VB (Vanguard Small Cap ETF) and VO (Vanguard Mid-Cap ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VO offers the higher yield at 1.24% vs 1.19% for VB. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

They track different benchmarks: VB is linked to CRSP US Small Cap Index while VO tracks CRSP US Mid Cap Index, which means their performance drivers differ.

VO is the larger fund by assets ($108B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, VB would generate roughly $9.92/month, while VO would produce $10.33/month, at current distribution rates. Both pay quarterly distributions.

VB yield1.19%
VO yield1.24%
Monthly diff on $10K$0.42

Cost & efficiency

Over 10 years on $10,000, VB would cost approximately $30 in fees vs $30 for VO (simplified, not compounded). Both charge the same expense ratio.

VB ER0.03%
VO ER0.03%

Strategy & risk

VB tracks CRSP US Small Cap Index with an index approach, while VO tracks CRSP US Mid Cap Index with an index approach. Beta is 1.1 for VB and 0.94 for VO, making VO the less volatile of the two by this measure.

VB beta1.1
VO beta0.94

Fund details

VB is managed by Vanguard (launched 01/26/2004) with $81.9B in assets. VO is managed by Vanguard (launched 01/26/2004) with $108B in assets.

VB AUM$81.9B
VO AUM$108B
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Frequently asked questions

What is the current distribution yield for VB and VO?

VB currently distributes 1.19% and VO 1.24%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is VB or VO better for dividend income?

It depends on your goals. VO currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between VB and VO?

VB (Vanguard Small Cap ETF) tracks CRSP US Small Cap Index with an index approach, while VO (Vanguard Mid-Cap ETF) tracks CRSP US Mid Cap Index with an index approach. They are issued by Vanguard and Vanguard respectively.

Can I hold both VB and VO?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is VB or VO safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: VO scores 97, VB scores 95. Neither has a clear safety edge on that measure. VO has also shown lower price volatility (beta 0.94 vs 1.10 for VB). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, VB or VO?

VB and VO both charge the same expense ratio of 0.03%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.

How much income does $10,000 in VB vs VO generate?

At current rates, $10,000 in VB would generate roughly $9.92 per month ($119.00 annually). The same in VO would produce about $10.33 per month ($124.00 annually).

Which has performed better historically, VB or VO?

VB has outpaced VO over the trailing twelve months, posting a 20.49% total return against 15.26%. The picture flips over 10 years, though — VO has compounded at 11.47% a year, ahead of VB at 11.01%. VO has been the steadier holding, though — annualized volatility of 14.7% against 18.9% for VB. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

VB vs VO — at a glance

Generated August 15, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

VB and VO are both Vanguard index ETFs tracking broad U.S. equity market segments—VB follows the CRSP US Small Cap Index, while VO tracks the CRSP US Mid Cap Index. The key distinction is market-cap exposure: VB captures companies with smaller market capitalizations, while VO holds mid-sized firms positioned between small and large caps. Both charge minimal fees and distribute dividends quarterly.

How they differ

VB carries a beta of 1.1 versus VO's 0.94, meaning small-cap stocks are more volatile relative to the broader market. VO is the larger fund by assets ($109B versus $82.5B) and charges a marginally lower expense ratio (0.04% versus 0.05%), though the difference is negligible in dollar terms. VB's distribution rate is 1.15% compared to VO's 1.21%, a spread that reflects the different dividend-paying characteristics of their respective market segments rather than any strategy difference. Both track CRSP indexes and have identical inception dates, making them direct peers in terms of fund structure and age.

Who each is best for

VB: Fits investors seeking higher equity-market volatility and growth potential through exposure to smaller publicly traded companies, accepting the accompanying price swings in exchange for smaller-cap return characteristics.

VO: Designed for investors looking to balance growth with modestly lower volatility than small-cap exposure, targeting the middle ground of the U.S. equity market where mid-sized companies operate.

Key risks to know

  • Market-cap sensitivity: Small caps (VB) are more sensitive to economic cycles, earnings surprises, and investor sentiment shifts than mid-caps; VB's higher beta reflects this structural difference and may lead to larger drawdowns in downturns.
  • Sector concentration within cap band: Both funds' underlying indexes concentrate holdings in specific sectors within their size range. Their sector allocations may diverge significantly, creating performance divergence unrelated to overall market movement. Holdings overlap between the two funds is likely minimal—verify overlap if planning to hold both.
  • Liquidity and trading spreads: While both are highly liquid ETFs, individual small-cap holdings in VB may have wider bid-ask spreads than mid-cap holdings in VO, potentially affecting trading costs at scale.

Bottom line

If you want small-cap market exposure and can tolerate higher volatility, VB's beta of 1.1 and smaller-company focus fit that goal; if you prefer a steadier ride with mid-cap characteristics and slightly lower fees, VO's 0.94 beta and $109B asset base offer it. Either works as a core equity holding in a diversified portfolio, and their minimal expense ratios make cost a non-issue in the decision. Past performance doesn't predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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