🤝 BFF Take
SCHA Is Marginally Cheaper — VB Has 3x More Assets and Liquidity
VB (Vanguard Small-Cap ETF) and SCHA (Schwab US Small-Cap ETF) are both excellent low-cost US small-cap ETFs. VB tracks the CRSP US Small Cap Index with ~1,500 stocks at 0.05%; SCHA tracks the Dow Jones US Small-Cap Total Stock Market Index with ~1,750 stocks at 0.04%. The 1 basis point fee difference is negligible. VB has about $60B in assets vs SCHA's $18B — meaningfully more liquid. Both are appropriate alternatives to the much more expensive IWM (Russell 2000, 0.19%) for long-term small-cap exposure. Choose based on your brokerage: Schwab investors naturally prefer SCHA; Vanguard investors prefer VB.
📋 Quick Takeaways
🔄Nearly identical small-cap coverage at essentially the same cost — functionally interchangeable
💰SCHA costs 0.04% vs VB's 0.05% — one basis point cheaper, negligible difference in practice
🏦VB has $60B AUM vs SCHA's $18B — VB has significantly better liquidity for large trades
📊 Data-Based Take: VB has the lower fee
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
✓
Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
VB
Vanguard Small-Cap ETF
SCHA
Schwab US Small-Cap ETF
📋 VB vs SCHA — Key Facts Side by Side
| Metric |
VB |
SCHA |
| Fund Name |
Vanguard Small-Cap ETF |
Schwab US Small-Cap ETF |
| Issuer |
Vanguard |
Schwab |
| Tracks Index |
CRSP US Small Cap |
Dow Jones US Small-Cap Total Stock Market |
| Expense Ratio |
0.05% |
0.04% ✓ |
| Cost per $10K/yr |
$5.00 |
$4.00 |
| AUM |
$60B |
$18B |
| Holdings |
1,500 |
1,750 |
| Inception |
2004 |
2009 |
| 1-Year Return |
+9.20% |
+9.10% |
| 3-Year Return |
+2.80% |
+2.70% |
| 5-Year Return |
+8.90% |
+8.80% |
| Avg Bid-Ask Spread |
0.01% |
0.01% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 VB vs SCHA — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy VB or SCHA?
Choose if...
VB
- You already use Vanguard and prefer staying within their fund family
Choose if...
SCHA
- You want the lowest fees — saves ~$1/yr per $10K vs VB
- You already use Schwab and prefer staying within their fund family
📧 Free Weekly Newsletter
Get smarter about ETFs — one concept a week, free forever
The ETF BFF newsletter breaks down one ETF concept per week — clear, jargon-free, and actually useful.
✅ You're in! Check your inbox for your first issue.
❓ VB vs SCHA — Frequently Asked Questions
What is the difference between VB and SCHA?
VB tracks the CRSP US Small Cap Index (~1,500 stocks) at 0.05%. SCHA tracks the Dow Jones US Small-Cap Total Stock Market Index (~1,750 stocks) at 0.04%. Both provide broad US small-cap exposure — the index methodology differences cause minor variation in holdings at the smallest and largest ends of the small-cap range. Performance has been nearly identical over shared history.
Is SCHA or VB better than IWM?
Both SCHA and VB are significantly cheaper than IWM (0.19%) and produce similar or better net returns for buy-and-hold investors. The only reason to use IWM over VB or SCHA is if you need the options market liquidity that IWM's massive trading volume provides. For long-term retirement account holders, VB or SCHA are clearly preferable to IWM on cost grounds alone.
Do VB and SCHA include the same small-cap stocks?
Mostly yes, with minor differences at the edges. The core small-cap universe (companies too small for the S&P 500 but above micro-cap) overlaps heavily. SCHA's Dow Jones index captures slightly more micro-cap names; VB's CRSP index has slightly stricter definitions. The difference has no meaningful impact on performance.
Should small-caps be part of a retirement portfolio?
This is a matter of investor philosophy and risk tolerance. VTI and other total market funds already include small-caps at market-cap weight (~7-10% of the portfolio). Adding VB or SCHA is a deliberate overweight to small-caps — a factor tilt that some believe will produce a premium over time. The case for small-cap is the documented small-cap premium in historical data; the case against is US small-caps underperformed for much of 2010-2020.
Can I combine VB and AVUV for a small-cap allocation?
Yes — some investors hold VB for broad small-cap passive exposure and AVUV for a specific factor tilt toward small-cap value with strong profitability. This blended approach reduces the cost of the factor tilt (since VB is very cheap) while maintaining the AVUV exposure for the specific quality-value premium. There's meaningful overlap in holdings, but AVUV's active selection means different weightings.
New to ETF investing? See answers to the most common ETF questions →
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.