⚖️ VO vs VB Comparison · Free & No Signup

VO vs VB: Where the S&P 500 Stops

Both funds exist to hold what VOO does not. VO takes the mid-cap band at about 340 holdings, VB goes further down to roughly 1,400 small-caps. Four and five basis points respectively.

💰 VO is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict

🤝 BFF Take

These Sit Next to Each Other on the Size Scale, Not Opposite Each Other

VO (Vanguard Mid-Cap ETF) and VB (Vanguard Small-Cap ETF) are adjacent slices of the same market rather than competing strategies. VO tracks the CRSP US Mid Cap index across about 340 companies at 0.04%. VB tracks CRSP US Small Cap across roughly 1,400 companies at 0.05%. Both exist because a S&P 500 fund stops at the large-cap band, leaving most listed US companies out by count even though the largest ones dominate by value. The practical question is rarely which of these to own instead of the other. It is whether a portfolio already holding VOO wants to extend down the size scale, and how far. A total-market fund such as VTI holds all three bands in one wrapper at market weight, which removes the decision. Choosing VO or VB separately is a decision to hold more of that band than the market does, and ETF BFF records VB at a beta of 1.18 against VO at 1.08, so the smaller band has historically moved more.

📋 Quick Takeaways

📐VO holds about 340 mid-cap companies, VB about 1,400 small-caps; they are neighbouring bands, not rival strategies

🪙Costs are near identical at 0.04% for VO and 0.05% for VB, so fee is not the deciding factor

📈Recorded beta of 1.18 for VB against 1.08 for VO: going further down in size has historically meant more movement

Both funds trade commission-free at every major brokerage. How the major brokerages compare →

✓ Reviewed by a CFA® Charterholder · Data as of Aug 30, 2026 · Educational only, not financial advice

Vanguard Morningstar Mid-Cap ETF

Expense Ratio

0.04% ✓

1-Year Return

+14.6%

AUM

$224.7B

Holdings

340

Vanguard Morningstar Small-Cap ETF

Expense Ratio

0.05%

1-Year Return

+20.5%

AUM

$183.4B

Holdings

1,400

📋 VO vs VB: Key Facts Side by Side

Metric	VO	VB
Fund Name	Vanguard Morningstar Mid-Cap ETF	Vanguard Morningstar Small-Cap ETF
Issuer	Vanguard	Vanguard
Tracks Index	CRSP US Mid Cap	CRSP US Small Cap
Expense Ratio	0.04% ✓	0.05%
Cost per $10K/yr	$4.00	$5.00
AUM	$224.7B	$183.4B
Holdings	340	1,400
Inception	2004	2004
1-Year Return	+14.63%	+20.51%
3-Year Return	+17.45%	+17.54%
5-Year Return	+7.94%	+8.04%
Dividend Yield	1.32%	1.22%
Holdings Overlap	See holdings overlap →
Avg Bid-Ask Spread	0.00%	0.00%

Expense ratio, AUM, and returns updated Aug 30, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

📊 VO vs VB: Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Which Fund Fits Which Investor?

Often fits investors who...

want the lowest fees: saves ~$1/yr per $10K vs VB

Often fits investors who...

want broader diversification (1,400 holdings vs 340)

💰 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.

Investment amount$ Years held Expected annual return%

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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❓ VO vs VB: Frequently Asked Questions

What is the difference between VO and VB?

Company size. VO tracks the CRSP US Mid Cap index, holding about 340 medium-sized US companies. VB tracks CRSP US Small Cap, holding roughly 1,400 smaller ones. Both are Vanguard funds with nearly identical costs, 0.04% and 0.05%. They are adjacent bands on the same size scale rather than different approaches to the same companies, and the indexes do not overlap.

Do I need both VO and VB if I already own VOO?

That depends on whether the goal is to match the total US market or to hold more of the smaller bands than the market does. VOO covers large caps only. Adding VO and VB extends coverage down the size scale. A single total-market fund such as VTI already holds all three bands at market weight in one holding, which is why many portfolios use VTI instead of assembling the pieces. Buying VO and VB alongside VOO in equal amounts is a deliberate overweight to smaller companies, not a neutral completion.

Is VB more volatile than VO?

Historically yes, though the gap is narrower than people expect between neighbouring bands. ETF BFF records VB at a beta of 1.18 against VO at 1.08. Smaller companies tend to be less diversified across product lines, more sensitive to financing conditions, and thinner traded, all of which show up as larger price swings. Past measures of volatility describe what has happened and do not predict what will.

Which has performed better, VO or VB?

Over the trailing periods ETF BFF records, VO has been ahead: about 19.5% against 16.0% over one year, 7.5% against 5.0% over three, and 12.5% against 10.0% over five, all annualised. Mid-caps outperforming small-caps over one stretch says little about the next one, and the ordering has reversed in other periods. Past performance does not guarantee future results.

What counts as a mid-cap or a small-cap?

There is no universal definition, which is why funds tracking different index providers hold different companies under the same label. CRSP, the provider behind both VO and VB, assigns companies to bands by cumulative share of total US market capitalisation rather than by fixed dollar cutoffs, and rebalances on a schedule. A company can move from the small band to the mid band without its business changing, simply because its market value grew relative to everything else.

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