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ETF Comparison

VBK vs VBR: Which Is the Better Pick in 2026?

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

Updated September 30, 2026

How these figures are calculated: methodology.

Best for

  • VBKInvestors who want a growth tilt and can accept bigger swings for higher upside.
  • VBRInvestors who want higher current income (1.78% vs 0.36% for VBK).

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Visual comparison

Key metrics

Projected income on $10K

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

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

VBK has outpaced VBR over the trailing twelve months, posting a 13.72% total return against 13.26%. The lead holds up over 10 years too: VBK has compounded at 10.65% a year, against 9.97% for VBR. 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Jan 2004Volatility Sharpe Sortino Max drawdown
VBK10.38%13.72%17.48%4.24%10.65%9.60%21.3%0.550.79-27.5%
VBR9.33%13.26%16.17%8.30%9.97%9.32%17.7%0.600.88-24.2%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jan 2004” measures every fund from January 30, 2004 — the start of shared available history — 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.
MetricVBKVBR
Full nameVanguard Morningstar Small-Cap Growth ETFVanguard Morningstar Small-Cap Value ETF
IssuerVanguardVanguard
Underlying indexMorningstar US Small Cap Growth IndexMorningstar US Small Cap Value Index
Last Close$337.83 as of September 30, 2026$231.03 as of September 30, 2026
Distribution rate0.36%1.78%
Trailing 12-month yield0.41%1.91%
Distribution Safety Score™ 8697
Safety-Adjusted Yield 0.31%1.73%
Expense ratio0.05%0.05%
AUM$23.0B$35.9B
Distribution frequencyQuarterlyQuarterly
ObjectiveSeeks to track the performance of the Morningstar US Small Cap Growth Index, which measures the investment return of small-capitalization growth stocks.Seeks to track the Morningstar US Small Cap Value Index.
Asset classEquityEquity
Inception date01/26/200401/26/2004
Beta1.17190.93
Last dividend$0.304 payable today$1.03 payable today
Ex-dividend date09/28/202609/28/2026

Bottom lineChoose VBK if you want a growth tilt and can accept bigger swings for higher upside. Choose VBR if you want higher current income (1.78% vs 0.36% for VBK).

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Vanguard
ETFs116
Total AUM$4677B

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

VBK (Vanguard Morningstar Small-Cap Growth ETF) and VBR (Vanguard Morningstar Small-Cap Value ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VBR offers the higher yield at 1.78% vs 0.36% for VBK. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

They have different reference exposures: VBK is linked to Morningstar US Small Cap Growth Index while VBR is linked to Morningstar US Small Cap Value Index, which means their performance drivers differ.

VBR is the larger fund by assets ($35.9B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, VBK would generate roughly $9.00 cash per distribution, while VBR would produce $44.50 cash per distribution, at current distribution rates. Both pay quarterly distributions.

VBK yield0.36%
VBR yield1.78%
Cash diff on $10K$35.50

Cost & efficiency

Over 10 years on $10,000, VBK would cost approximately $50 in fees vs $50 for VBR (simplified, not compounded). Both charge the same expense ratio.

VBK ER0.05%
VBR ER0.05%

Strategy & risk

VBK tracks Morningstar US Small Cap Growth Index, while VBR tracks Morningstar US Small Cap Value Index with a small caps approach. Beta is 1.1719 for VBK and 0.93 for VBR, making VBR the less volatile of the two by this measure.

VBK beta1.1719
VBR beta0.93

Fund details

VBK is managed by Vanguard (launched 01/26/2004) with $23.0B in assets. VBR is managed by Vanguard (launched 01/26/2004) with $35.9B in assets.

VBK AUM$23.0B
VBR AUM$35.9B
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Frequently asked questions

What is the current distribution rate for VBK and VBR?

VBK currently distributes 0.36% and VBR 1.78%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is VBK or VBR better for dividend income?

It depends on your goals. VBR 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 VBK and VBR?

VBK (Vanguard Morningstar Small-Cap Growth ETF) tracks Morningstar US Small Cap Growth Index, while VBR (Vanguard Morningstar Small-Cap Value ETF) tracks Morningstar US Small Cap Value Index with a small caps approach. They are issued by Vanguard and Vanguard respectively.

Can I hold both VBK and VBR?

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 VBK or VBR safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VBR scores 97, VBK scores 86, so VBR's payout currently looks the more resilient of the two. VBR has also shown lower price volatility (beta 0.93 vs 1.17 for VBK). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, VBK or VBR?

VBK and VBR both charge the same expense ratio of 0.05%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.

How much income does $10,000 in VBK vs VBR generate?

At current rates, $10,000 in VBK would generate roughly $9.00 cash per distribution ($36.00 annually). The same in VBR would produce about $44.50 cash per distribution ($178.00 annually).

Which has performed better historically, VBK or VBR?

VBK has outpaced VBR over the trailing twelve months, posting a 13.72% total return against 13.26%. The lead holds up over 10 years too: VBK has compounded at 10.65% a year, against 9.97% for VBR. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

VBK vs VBR — at a glance

Generated September 26, 2026.

Overview

VBK and VBR are both Vanguard small-cap ETFs launched on the same day, but they track opposite ends of the market style spectrum. The core difference is portfolio composition: growth stocks typically have higher price-to-earnings multiples and emphasize earnings expansion, while value stocks trade at lower multiples and emphasize dividend yield and book value.

How they differ

The most immediate difference is yield. Both charge the same 0.05% expense ratio, so cost is a wash.

VBK carries a beta of 1.1719, meaning it swings harder than the small-cap market overall—growth stocks amplify upside in rallies but also downside in drawdowns. VBR's beta of 0.93 sits below 1.0, suggesting somewhat steadier price action relative to the broader small-cap benchmark. VBR also holds a larger asset base at $35.9B versus VBK's $23.0B, though both funds are substantial. Performance will diverge based on whether growth or value leadership dominates a given period—a cycle that has swung sharply over the past decade and a half.

Who each is best for

VBK: Fits investors seeking growth-oriented exposure to smaller companies and who can tolerate above-market volatility in exchange for the potential of faster earnings growth and capital appreciation.

VBR: Fits investors who prioritize current income alongside capital appreciation and prefer the steadier price movement historically associated with value-oriented small-cap stocks.

Key risks to know

  • Style factor risk. Both funds are pure-play style bets; extended periods of growth or value underperformance will drag returns. If growth underperforms for years, VBK faces sustained headwinds; if value stumbles, VBR does likewise.
  • Small-cap volatility. VBK's beta of 1.1719 underscores the amplified price swings inherent to small-cap growth; liquidity in individual holdings is thinner, and earnings surprises can trigger sharp reversals. VBR is somewhat steadier but still subject to the liquidity and information constraints of smaller companies.
  • Dividend sustainability in value. VBR's 1.78% yield assumes that portfolio companies will maintain or grow payouts. Economic downturns often hit smaller dividend-paying firms hard, and cuts could reduce yield significantly.
  • Growth drawdowns without current income cushion. VBK's low 0.36% yield offers little income to offset price declines during growth-stock selloffs, leaving total return entirely dependent on capital appreciation recovery.

Bottom line

If you want exposure to small-cap companies with high growth expectations and can accept elevated volatility, VBK's minimal yield and higher beta suit that profile. If current income and relatively steadier returns matter more, VBR's 1.78% yield and lower beta align better—though both funds carry the risks inherent to small-cap investing. Past performance of either style is not a guarantee of future results.

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

Learn the method

The metrics behind this comparison, explained in the Academy.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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These comparisons follow the Dividend Vision methodology.