VB vs VTWO: Grades, Fees and Holdings Compared

Vanguard Morningstar Small-Cap ETF

VBANYSE Arca

Vanguard Russell 2000 ETF

VTWOANasdaq

Overlap

25.0%by weight

Expense ratio

VB −0.03pt a year

VB0.03%VTWO0.06%

Avg volume · 30D

VTWO 2.9×the volume

VB499KVTWO1.45M

10Y return · a year

VB +0.6pt

VB+11.1%VTWO+10.5%

VB vs VTWO Performance

Oct 29, 2021 – Oct 30, 2026

+36.2%VB+31.3%VTWO

Expense ratio: VB 0.03%, better; VTWO 0.06%
Fund size: VB $176B; VTWO $17.3B
1Y total return: VB +15.3%, better; VTWO +14.8%
Yield (12M): VB 1.26%, better; VTWO 1.20%
Holdings: VB 1305; VTWO 2000
Avg volume (30D): VB 499K sh; VTWO 1.45M sh, better
NAV per share: VB $290.35; VTWO $112.88
52W range

ETF.net Grade

Pillar letters and Scores for VB, VTWO, with each pillar’s weight
Pillar	VB	VTWO
Cost30% weight	A91Higher	A75
Mission25% weight	A86	A100Higher
Risk15% weight	B63Higher	D34
Tradability15% weight	B57Higher	C54
Holdings10% weight	B59	A70Higher
Durability5% weight	A91Higher	A83

Rank among US Small-Cap funds

How we build Categories ›

Same Category. VB and VTWO are both graded against the same 16 US Small-Cap funds, so their Grades compare head to head.

US Small-Cap⁠

Category · 16 funds

See all 16 ›

VB ranks 2nd and VTWO 4th of 16 funds in the US Small-Cap Category.

Rank 1ASCHASchwab U.S. Small-Cap ETFScore 81
Rank 2AVBVanguard Morningstar Small-Cap ETFScore 77
Rank 3ABKSEBNY Mellon US Small Cap Core Equity ETFScore 72
Rank 4AVTWOVanguard Russell 2000 ETFScore 71
Rank 5ASMMDiShares Russell 2500 ETFScore 69

Our read on each fund

ETF.net Research

VBAVanguard Morningstar Small-Cap ETF

VTWOAVanguard Russell 2000 ETF

In short

VB Vanguard's small-cap workhorse: roughly 1,400 smaller US companies for three basis points. The CRSP index behind it shifts stocks between size bands in two half steps instead of one jump, which holds turnover down. Trading since 2004.

VTWO The Russell 2000 is the small-cap benchmark every headline quotes. VTWO is Vanguard's cheap seat on it: about 2,000 small US companies for 0.06% a year, a fraction of the fee on the best-known fund tracking the same index.

Stated mandate

VB The fund seeks to track the CRSP US Small Cap Index, which measures the investment performance of small U.S. companies. It uses an indexing approach and generally replicates the index by holding its securities in approximately their index weights.

VTWO The fund invests in stocks in the Russell 2000 Index and seeks to closely track that index's return, representing small-cap U.S. stock exposure.

Why people hold it

VB Three basis points a year, against a small-cap category median near 0.25%. Cost is the one edge in indexing you actually keep.
About 1,400 stocks held at roughly their index weights, so no single small-cap story carries the fund.vanguard.com
Its CRSP benchmark migrates a stock between size segments in two 50% packets instead of one move, a design built to cut turnover.crsp.com
Running since 2004, actively traded, and one of the strongest implementations in its 20-fund small-cap peer group.

VTWO Same index, smaller toll. VTWO charges 0.06% while IWM, the other big Russell 2000 tracker, charges 0.19%. The small-cap category median is 0.25%.vanguard.com
Holds roughly 2,000 stocks, the whole small-cap benchmark rather than a trimmed slice. A multi-billion-dollar fund, actively traded, running since 2010 and paying quarterly.
Tracking has been about as tight as this corner of the market gets, one of the closest index-replication records among US small-cap funds.

Worth knowing

VB Small companies move harder in both directions than large-cap benchmarks, and this is full, unhedged exposure to that.
Benchmarks disagree on where small cap starts. VB follows CRSP, while IWM and VTWO track the Russell 2000, so holdings and results can drift apart.
US companies only, and distributions land quarterly rather than monthly.

VTWO Small-cap stocks swing harder than large caps, and this fund stays fully invested in them through the rough stretches.vanguard.com
Cheaper exists on the shelf: VB and SCHA run 0.03%, though they follow different small-cap indexes with different membership rules.
The Russell 2000 rebuilds its membership on a published schedule (June, plus a December rebalance from 2026), which packs index-driven trading into those dates.lseg.com

Full VB profile⁠

Full VTWO profile⁠

VB vs VTWO Holdings

How VB and VTWO differ

Overlap by weight

25.0%

Shared holdings make up 67.6% of VTWO and 25.0% of VB.

Level by level

Holdings679 in both25.0%
Sector11 Sectors85.6%
Asset classEquity100%
Countryby domicile100%

Sector

Sector weights in VB and VTWO, widest gap first
Sector	More in VBMore in VTWO	VB	VTWO
Health Care	VTWO +6.5 points	14.3%	20.8%
Financials	VTWO +5.7 points	12.4%	18.1%
Technology	VB +4.3 points	18.5%	14.2%
Industrials	VB +3.8 points	17.5%	13.7%
Consumer Discretionary	VB +2.9 points	11.4%	8.5%
Energy	VTWO +1.9 points	4.3%	6.2%
Real Estate	VB +1.3 points	7.6%	6.3%
Consumer Staples	VB +0.8 points	3.4%	2.6%
Communication	VB +0.8 points	3.0%	2.2%
Utilities	VB +0.5 points	3.2%	2.7%
Materials	VTWO +0.4 points	4.4%	4.8%

Country, concentration and asset class

Country by domicile

Country weights in VB and VTWO, widest gap first
Country	More in VBMore in VTWO	VB	VTWO
United States	Same weight	100.0%	100.0%

Concentration

Weight in the 10 largest Holdings

VB5.9%
VTWO5.4%

Securities held

VB1,299
VTWO1,998

Asset class

VB: Equity
VTWO: Equity

Holdings

Only in VB620
In both679
Only in VTWO1,319

Only in VB

620 securities, 75.0% of VB by weight

SLCMT11421.31%
Natera Inc0.72%
Twilio Inc0.57%
Revolution Medicines Inc0.53%
Illumina Inc0.52%
Everpure Inc0.52%
Okta Inc0.44%
Moderna Inc0.44%
EMCOR Group Inc0.42%
Credo Technology Group Holding Ltd0.42%
Jabil Inc0.38%
Williams-Sonoma Inc0.34%
TechnipFMC PLC0.34%
Atmos Energy Corp0.33%
nVent Electric PLC0.33%
ATI Inc0.33%
F5 Inc0.32%
Entegris Inc0.30%
United Therapeutics Corp0.29%
Smurfit Westrock PLC0.29%
Tapestry Inc0.29%
Guardant Health Inc0.29%
Casey's General Stores Inc0.28%
Incyte Corp0.26%
MACOM Technology Solutions Holdings Inc0.26%
Tenet Healthcare Corp0.26%
Viatris Inc0.26%
Flex Ltd0.26%
SoFi Technologies Inc0.26%
Omnicom Group Inc0.26%
Roku Inc0.25%
NRG Energy Inc0.25%
Curtiss-Wright Corp0.25%
Royal Gold Inc0.25%
US Foods Holding Corp0.25%
Reliance Inc0.25%
Liberty Media Corp0.25%
XPO Inc0.25%
Expand Energy Corp0.25%
Woodward Inc0.25%
NiSource Inc0.24%
Affirm Holdings Inc0.23%
Roivant Sciences Ltd0.23%
TD SYNNEX Corp0.23%
Carpenter Technology Corp0.23%
Nutanix Inc0.23%
ITT Inc0.23%
MKS Inc0.23%
Lattice Semiconductor Corp0.23%
Best Buy Co Inc0.22%

Only in VTWO

1,319 securities, 32.5% of VTWO by weight

SLBBH11422.36%
SSR Mining Inc0.23%
GRAIL Inc0.19%
CRISPR Therapeutics AG0.16%
Kulicke & Soffa Industries Inc0.16%
Definium Therapeutics Inc0.16%
Garrett Motion Inc0.16%
Golar LNG Ltd0.15%
Brookfield Infrastructure Corp0.15%
Marex Group Ltd0.14%
LivaNova PLC0.14%
Chefs' Warehouse Inc/The0.14%
Enova International Inc0.13%
Par Pacific Holdings Inc0.13%
Solaris Energy Infrastructure Inc0.13%
Perimeter Solutions Inc0.13%
Tutor Perini Corp0.12%
Scorpio Tankers Inc0.12%
Kodiak Sciences Inc0.12%
CECO Environmental Corp0.12%
Xenon Pharmaceuticals Inc0.12%
Ultra Clean Holdings Inc0.12%
Calumet Inc0.12%
Tango Therapeutics Inc0.12%
Ideaya Biosciences Inc0.11%
CareDx Inc0.11%
DHT Holdings Inc0.11%
Dave Inc0.11%
Tarsus Pharmaceuticals Inc0.11%
Relay Therapeutics Inc0.11%
Cleanspark Inc0.11%
Nicolet Bankshares Inc0.11%
Cohu Inc0.10%
Aehr Test Systems0.10%
Seacoast Banking Corp of Florida0.10%
Chesapeake Utilities Corp0.10%
Constellium SE0.10%
Celcuity Inc0.10%
Arcutis Biotherapeutics Inc0.10%
Amylyx Pharmaceuticals Inc0.10%
Bel Fuse Inc0.10%
Edgewise Therapeutics Inc0.10%
NMI Holdings Inc0.09%
Digi International Inc0.09%
Seadrill Ltd0.09%
Dynex Capital Inc0.09%
Vita Coco Co Inc/The0.09%
Acadian Asset Management Inc0.09%
Penguin Solutions Inc0.09%
VeraDermics Inc0.09%

Weight gaps

The 100 widest of 679 Holdings in both funds.

Holding weights in VB and VTWO, widest gap first
Holding	More in VBMore in VTWO	VB	VTWO
Twist Bioscience CorpTWST	VTWO +0.26 points	0.16%	0.42%
Moog IncMOG.A	VTWO +0.22 points	0.14%	0.36%
JFrog LtdFROG	VTWO +0.21 points	0.14%	0.35%
10X Genomics IncTXG	VTWO +0.21 points	0.14%	0.35%
UMB Financial CorpUMBF	VTWO +0.21 points	0.11%	0.32%
Glaukos CorpGKOS	VTWO +0.19 points	0.12%	0.31%
BrightSpring Health Services IncBTSG	VTWO +0.19 points	0.12%	0.31%
Viasat IncVSAT	VTWO +0.18 points	0.12%	0.30%
CareTrust REIT IncCTRE	VTWO +0.18 points	0.11%	0.29%
FirstCash Holdings IncFCFS	VTWO +0.18 points	0.10%	0.28%
Cytokinetics IncCYTK	VTWO +0.17 points	0.12%	0.29%
Old National Bancorp/INONB	VTWO +0.17 points	0.11%	0.28%
Brinker International IncEAT	VTWO +0.18 points	0.10%	0.28%
InterDigital IncIDCC	VTWO +0.17 points	0.11%	0.28%
Krystal Biotech IncKRYS	VTWO +0.18 points	0.11%	0.29%
Hut 8 CorpHUT	VTWO +0.17 points	0.12%	0.29%
Jackson Financial IncJXN	VTWO +0.17 points	0.11%	0.28%
TG Therapeutics IncTGTX	VTWO +0.17 points	0.10%	0.27%
Protagonist Therapeutics IncPTGX	VTWO +0.17 points	0.12%	0.29%
SM Energy CoSM	VTWO +0.17 points	0.10%	0.27%
Ryman Hospitality Properties IncRHP	VTWO +0.17 points	0.10%	0.27%
MaxLinear IncMXL	VTWO +0.16 points	0.10%	0.26%
HealthEquity IncHQY	VTWO +0.15 points	0.09%	0.24%
Iovance Biotherapeutics IncIOVA	VTWO +0.15 points	0.04%	0.19%
PBF Energy IncPBF	VTWO +0.15 points	0.10%	0.25%
Zeta Global Holdings CorpZETA	VTWO +0.15 points	0.09%	0.24%
Oscar Health IncOSCR	VTWO +0.14 points	0.10%	0.24%
Silicon Laboratories IncSLAB	VTWO +0.15 points	0.09%	0.24%
Arcosa IncACA	VTWO +0.15 points	0.09%	0.24%
Riot Platforms IncRIOT	VTWO +0.15 points	0.09%	0.24%
Plexus CorpPLXS	VTWO +0.14 points	0.09%	0.23%
Scholar Rock Holding CorpSRRK	VTWO +0.15 points	0.03%	0.18%
ESCO Technologies IncESE	VTWO +0.14 points	0.09%	0.23%
Commercial Metals CoCMC	VTWO +0.14 points	0.09%	0.23%
StoneX Group IncSNEX	VTWO +0.14 points	0.09%	0.23%
Matson IncMATX	VTWO +0.14 points	0.08%	0.22%
Fluor CorpFLR	VTWO +0.14 points	0.08%	0.22%
Vaxcyte IncPCVX	VTWO +0.14 points	0.11%	0.25%
Qualys IncQLYS	VTWO +0.14 points	0.08%	0.22%
EnerSysENS	VTWO +0.14 points	0.08%	0.22%
Zurn Elkay Water Solutions CorpZWS	VTWO +0.14 points	0.09%	0.23%
Terreno Realty CorpTRNO	VTWO +0.14 points	0.09%	0.23%
Travere Therapeutics IncTVTX	VTWO +0.13 points	0.04%	0.17%
Praxis Precision Medicines IncPRAX	VTWO +0.14 points	0.10%	0.24%
Alkermes PLCALKS	VTWO +0.13 points	0.09%	0.22%
Federal Signal CorpFSS	VTWO +0.13 points	0.09%	0.22%
Kymera Therapeutics IncKYMR	VTWO +0.14 points	0.09%	0.23%
Enpro IncNPO	VTWO +0.14 points	0.08%	0.22%
Macerich Co/TheMAC	VTWO +0.13 points	0.08%	0.21%
AXT IncAXTI	VTWO +0.13 points	0.03%	0.16%
Lantheus Holdings IncLNTH	VTWO +0.13 points	0.08%	0.21%
Ligand Pharmaceuticals IncLGND	VTWO +0.14 points	0.07%	0.21%
TXNM Energy IncTXNM	VTWO +0.13 points	0.08%	0.21%
Hims & Hers Health IncHIMS	VTWO +0.13 points	0.08%	0.21%
United Bankshares Inc/WVUBSI	VTWO +0.13 points	0.08%	0.21%
Spyre Therapeutics IncSYRE	VTWO +0.13 points	0.09%	0.22%
Commvault Systems IncCVLT	VTWO +0.13 points	0.08%	0.21%
Compass IncCOMP	VTWO +0.12 points	0.09%	0.21%
Valley National BancorpVLY	VTWO +0.12 points	0.08%	0.20%
Southwest Gas Holdings IncSWX	VTWO +0.13 points	0.07%	0.20%
Terex CorpTEX	VTWO +0.13 points	0.07%	0.20%
Life Time Group Holdings IncLTH	VTWO +0.13 points	0.08%	0.21%
GATX CorpGATX	VTWO +0.12 points	0.08%	0.20%
D-Wave Quantum IncQBTS	VTWO +0.12 points	0.08%	0.20%
Victoria's Secret & CoVSXY	VTWO +0.12 points	0.09%	0.21%
Adaptive Biotechnologies CorpADPT	VTWO +0.12 points	0.03%	0.15%
Hancock Whitney CorpHWC	VTWO +0.13 points	0.07%	0.20%
Abercrombie & Fitch CoANF	VTWO +0.12 points	0.08%	0.20%
MYR Group IncMYRG	VTWO +0.12 points	0.03%	0.15%
ACM Research IncACMR	VTWO +0.12 points	0.03%	0.15%
Ormat Technologies IncORA	VTWO +0.12 points	0.07%	0.19%
International Seaways IncINSW	VTWO +0.12 points	0.03%	0.15%
Cavco Industries IncCVCO	VTWO +0.11 points	0.03%	0.14%
Glacier Bancorp IncGBCI	VTWO +0.12 points	0.07%	0.19%
Essential Properties Realty Trust IncEPRT	VTWO +0.12 points	0.07%	0.19%
JBT Marel CorpJBTM	VTWO +0.11 points	0.07%	0.18%
Materion CorpMTRN	VTWO +0.12 points	0.07%	0.19%
Sensient Technologies CorpSXT	VTWO +0.12 points	0.07%	0.19%
Lumen Technologies IncLUMN	VTWO +0.11 points	0.07%	0.18%
Magnolia Oil & Gas CorpMGY	VTWO +0.11 points	0.07%	0.18%
Varonis Systems IncVRNS	VTWO +0.11 points	0.07%	0.18%
Atlantic Union Bankshares CorpAUB	VTWO +0.11 points	0.07%	0.18%
Black Hills CorpBKH	VTWO +0.11 points	0.07%	0.18%
PTC Therapeutics IncPTCT	VTWO +0.11 points	0.07%	0.18%
Kodiak Gas Services IncKGS	VTWO +0.11 points	0.07%	0.18%
Balchem CorpBCPC	VTWO +0.11 points	0.07%	0.18%
Home BancShares Inc/ARHOMB	VTWO +0.11 points	0.07%	0.18%
Archrock IncAROC	VTWO +0.11 points	0.06%	0.17%
Impinj IncPI	VTWO +0.11 points	0.06%	0.17%
Xometry IncXMTR	VTWO +0.11 points	0.07%	0.18%
Noble Corp PLCNE	VTWO +0.11 points	0.07%	0.18%
Cogent Biosciences IncCOGT	VTWO +0.11 points	0.07%	0.18%
Frontdoor IncFTDR	VTWO +0.11 points	0.06%	0.17%
Essent Group LtdESNT	VTWO +0.11 points	0.06%	0.17%
Merit Medical Systems IncMMSI	VTWO +0.11 points	0.06%	0.17%
Dianthus Therapeutics IncDNTH	VTWO +0.11 points	0.03%	0.14%
Argan IncAGX	VTWO +0.11 points	0.06%	0.17%
Portland General Electric CoPOR	VTWO +0.10 points	0.07%	0.17%
Rigetti Computing IncRGTI	VTWO +0.10 points	0.07%	0.17%
Oruka Therapeutics IncORKA	VTWO +0.11 points	0.03%	0.14%

All 1,357 VB holdings⁠All 1,969 VTWO holdings⁠

How we measure overlap

Each holding counts at its smaller weight in the two funds, summed over the full Holdings. Sector, country and asset class use the same rule on each fund’s split. Cash, FX and derivative lines stay out of the counts. Two bond funds get no overlap figure.

VB vs VTWO Cost

Overpaying VTWO vs VB

$632

On $10,000 over 30 years. 7% growth a year before fees, expense ratio only.

VB 0.03%
$638
VTWO 0.06%
$1,270

Amount$10,000

Years30 years

Cost over time

VB 0.03%
VTWO 0.06%
Overpaying

Year by year

Year	VB	VTWO	Overpaying
10	$55	$110	$55
20	$216	$432	$216
30	$638	$1,270	$632

Expense ratio

0.03%VB, cheaper
0.06%VTWO

VB0.03%VTWO0.06%

0.03%0.60%

Middle half of US Small-Cap funds
Median 0.20%

VB cheapest of 16 funds

VTWO 4th cheapest of 16 funds

VB vs VTWO Dividends

Last 12 months to Oct 30, 2026

Yield (12M): VB 1.26%, better; VTWO 1.20%
Payout (12M): VB $3.65; VTWO $1.36
Last payment: VB $0.85; VTWO $0.39
Ex-dividend: VB Sep 28, 2026; VTWO Sep 23, 2026
Paid on: VB Sep 30, 2026; VTWO Sep 25, 2026
Frequency: VB Quarterly; VTWO Quarterly

Distribution history

Per share, 2017 to 2026, same scale for both

VBQuarterly · 40 paymentsAll VB payments⁠

VTWOQuarterly · 39 paymentsAll VTWO payments⁠

VB vs VTWO Risk

Fall from peak · 5 years

VB
VTWO

Risk facts

VolatilityStd dev, 3 years: VB 16.4%, betterVTWO 19.0%
Return per unit of riskSharpe ratio, 3 years: VB 0.89, betterVTWO 0.86
Worst fallMax drawdown, 5 years: VB −28.2%, betterVTWO −31.9%
Market sensitivityBeta, 5 years: VB 1.07VTWO 1.14; Market = 1

VB and VTWO in the news

All news⁠

Best ETFs
Best small-cap ETFs: Vanguard’s VB beats three great funds all charging just 0.03%
Updated Nov 2, 2026VBVTWO
Head-to-Head
Hold VB over IWM for a small-cap stake
Oct 30, 2026VBVTWO
Best ETFs
Schwab and Vanguard charge the same 0.03%. Their small-cap funds are 3.7 percentage points apart
Updated Oct 2, 2026VBVTWO
New ETFs
Longnook's compounders ETF leads with tankers, Newmont and Exxon Mobil
Oct 5, 2026VTWO
ETF Filings
Vanguard files for a U.S. small-mid cap active ETF after last year’s three reached $161 million
Sep 21, 2026VB

Popular comparisons

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VB vs VTWO

In short

Stated mandate

Why people hold it