Vanguard Small-Cap ETF (VB): Complete Beginner's Guide
Vanguard Small-Cap ETF (VB) is a us small-cap ETF from Vanguard with an expense ratio of 0.05% and $55.0B in assets under management. Our Beginner Suitability Score: 9/10 (Great for Beginners). 5-year annualized return: 9.00%.
Last updated: April 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% |
VB's top holding is Atmos Energy (ATO) at 0.50%, followed by Churchill Downs (CHDN) at 0.50% and Regal Rexnord (RRX) at 0.40%. The top 10 holdings account for 3.80% of the fund's 1,400 total positions.
View data table
| Rank | 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%
VB has returned 9.00% annualized over 5 years and 8.50% over 10 years. YTD return is 2.00%.
View data table
| Period | Return |
|---|---|
| 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.
VB Sector Allocation
Here's how VB distributes its investments across different sectors of the economy:
VB's largest sector allocation is Industrials at 20.0%, followed by Financials at 17.0% and Consumer Discretionary at 14.0%.
View data table
| Sector | Weight |
|---|---|
| Industrials | 20.0% |
| Financials | 17.0% |
| Consumer Discretionary | 14.0% |
| Technology | 12.0% |
| Healthcare | 11.0% |
| Real Estate | 8.0% |
| Energy | 6.0% |
| Materials | 5.0% |
| Utilities | 4.0% |
| Consumer Staples | 3.0% |
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.
VB's expense ratio of 0.05% costs $430 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,180.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,659 | $34 |
| 10 | $21,589 | $21,490 | $99 |
| 15 | $31,722 | $31,502 | $220 |
| 20 | $46,610 | $46,180 | $430 |
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.
What sectors does VB invest in?▾
VB's largest sector allocations are Industrials (20.00%), Financials (17.00%), Consumer Discretionary (14.00%). This sector distribution shows a focus on industrials stocks.
How much do VB's fees cost over time?▾
With an expense ratio of 0.05%, a $10,000 investment in VB would lose approximately $430 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.