Vanguard Small-Cap ETF (VB): Complete Beginner's Guide
Last updated: March 2026 • Vanguard • US Small-Cap
Expense Ratio
0.05%
AUM
$55.0B
Dividend Yield
1.40%
Inception
2004
Beginner Score
9/10
What is Vanguard Small-Cap ETF?
VB tracks the CRSP US Small Cap Index, providing exposure to a broad range of small U.S. companies with higher growth potential but also more volatility. Small-cap stocks have historically outperformed larger companies over very long periods, though with bumpier rides along the way. This fund is a low-cost way to tap into the entrepreneurial engine of the American economy.
VB is managed by Vanguard and has been available since 2004. With $55.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.05%, which means for every $10,000 you invest, you pay approximately $5 per year in management fees.
VB at a Glance — Key Metrics
| Expense Ratio | 0.05% |
| Total Holdings | 1,400 |
| P/E Ratio | 20.5 |
| Beta | 1.15 |
| Dividend Yield | 1.40% |
| AUM | $55.0B |
| Inception Year | 2004 |
| Issuer | Vanguard |
Top 10 Holdings in VB
VB holds 1,400 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Atmos Energy | ATO | 0.50% |
| 2 | Churchill Downs | CHDN | 0.50% |
| 3 | Regal Rexnord | RRX | 0.40% |
| 4 | Casella Waste Systems | CWST | 0.40% |
| 5 | Glacier Bancorp | GBCI | 0.40% |
| 6 | Installed Building Products | IBP | 0.40% |
| 7 | Boise Cascade | BCC | 0.30% |
| 8 | Comfort Systems USA | FIX | 0.30% |
| 9 | SPS Commerce | SPSC | 0.30% |
| 10 | Texas Roadhouse | TXRH | 0.30% |
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VB Performance History
Here's how VB has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.00%
1 Year
10.00%
3 Year
5.00%
5 Year
9.00%
10 Year
8.50%
Beginner Suitability Score: 9/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
VB scores 9/10 because it has very low fees, can be more volatile than the broader market, offers broad diversification across 1,400 holdings, and has been available since 2004, giving it a proven track record.
How to Buy VB — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "VB" — Use the search bar in your brokerage platform to find Vanguard Small-Cap ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into VB
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With VB's expense ratio of 0.05%, a $10,000 investment would lose approximately $430 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
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Pros and Cons of VB
Pros
- ✓Extremely broad diversification across over 1,400 small-cap stocks
- ✓Low expense ratio is rare for a small-cap fund with this many holdings
- ✓Small-cap premium has historically rewarded patient long-term investors
- ✓Less overlap with large-cap-dominated index funds enhances portfolio diversification
Cons
- ✗Higher volatility and bigger drawdowns during bear markets than large-cap funds
- ✗Small companies are more vulnerable to economic recessions and credit tightening
- ✗Lower liquidity in underlying holdings can lead to wider bid-ask spreads in turbulent markets
VB vs Similar ETFs
See how VB stacks up against similar funds:
Frequently Asked Questions
Is VB a good ETF for beginners?▾
VB has a Beginner Suitability Score of 9/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of VB?▾
VB has an expense ratio of 0.05%. This means for every $10,000 you invest, you pay approximately $5 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in VB?▾
You can invest in VB with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does VB pay dividends?▾
Yes, VB pays dividends with a current yield of approximately 1.40%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in VB?▾
The top holdings in VB include Atmos Energy (0.50%), Churchill Downs (0.50%), Regal Rexnord (0.40%), and more. The fund holds 1,400 total positions, providing broad diversification across many companies.