VB vs SCHA: Vanguard vs Schwab in the Small-Cap ETF Race
Both VB and SCHA cover US small-cap stocks at nearly identical cost. The index differs slightly, but for most investors, these are functionally interchangeable.
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.
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.
Both funds trade commission-free at every major brokerage. How the major brokerages compare →
📋 VB vs SCHA: Key Facts Side by Side
| Metric | VB | SCHA |
|---|---|---|
| Fund Name | Vanguard Morningstar Small-Cap ETF | Schwab U.S. 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 | $183.4B | $22.2B |
| Holdings | 1,500 | 1,750 |
| Inception | 2004 | 2009 |
| 1-Year Return | +20.51% | +27.32% |
| 3-Year Return | +17.54% | +18.86% |
| 5-Year Return | +8.04% | +7.95% |
| Dividend Yield | 1.22% | 1.07% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.01% | 0.01% |
Expense ratio, AUM, and returns updated Aug 30, 2026 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.
🎯 Which Fund Fits Which Investor?
- already use Vanguard and prefer staying within one fund family
- want the lowest fees: saves ~$1/yr per $10K vs VB
- already use Schwab and prefer staying within one fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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❓ VB vs SCHA: Frequently Asked Questions
New to ETF investing? See answers to the most common ETF questions →