What Is the VBR ETF? Returns, Expense Ratio, Holdings and Alternative ETFs Explained
VBR, the Vanguard Small-Cap Value ETF, tracks the CRSP US Small Cap Value Index. Its strengths are a low expense ratio, quarterly dividends and broad diversification across hundreds of stocks. Differences in fees and composition versus large-cap ETFs are the key selection criteria, making it suitable for long-term investors who want to add small-cap value exposure.
SubscribeWhat Is the Vanguard Small-Cap Value ETF?
This is a passive ETF that tracks the CRSP US Small Cap Value Index and diversifies across US small-cap value stocks. It holds hundreds of stocks selected on value metrics such as book value, earnings and dividends, weighted by market capitalization.
It suits long-term investors who want to broaden diversification by adding small-cap value exposure to a portfolio centered on large caps.
It is a passive (index-tracking) ETF managed by Vanguard.
How Does the Vanguard Small-Cap Value ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | CRSP US Small Cap Value Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Quarterly |
| Manager | Vanguard |
| Total Expense Ratio | 0.05% |
The fund replicates the constituents of the CRSP US Small Cap Value Index at their market-cap weights, tracking the performance of US small-cap value stocks as a whole. By holding a broad set of stocks selected on value metrics, it spreads single-stock risk, and rebalancing is reflected regularly according to the index rules.
- Fees below the category average
- Broad diversification across hundreds of stocks
Vanguard Small-Cap Value ETF Size and Costs (AUM and Fees)
Assets under management (AUM) stand at $37.3B, and the total expense ratio is 0.05% per year.
Compared with VTV, another Vanguard value fund, it differs in focusing on the small-cap segment of the market, while keeping fees at a low level.
Vanguard Small-Cap Value ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeSmall-cap value stocks tend to move on a different cycle from large-cap growth stocks, so their relative performance can be volatile depending on interest rates and the economic phase. Recent trends also show gains and losses alternating with market conditions.
Fund flows driven by demand for factor diversification and core-portfolio complements have been steady. In phases when demand to diversify away from large-cap concentration stands out, interest in the small-cap value category can rise.
Vanguard Small-Cap Value ETF Pros and Cons
Its strengths are low fees and broad diversification, while its weaknesses are the volatility typical of small caps and the cyclical risk of the value style.
💪 Key Strengths
⚠️ Points of Caution
Vanguard Small-Cap Value ETF Alternatives and Related Products
VTV, IWD, IVE, SPYV and IUSV shown in the table all cover large-cap or broad value stocks, and they are distinguished from the small-cap territory of VBR by their larger market-cap range. Direct comparisons within the same small-cap value space include State Street's SLYV and iShares' IJS, and for broad exposure to small caps as a whole, a core small-cap ETF such as IWM can also be considered.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VTV | Vanguard Morningstar Value ETF | $228.02 | -0.4% | $196.6B | 0.03% | 1.83% | +22.9% |
 IWD | iShares Russell 1000 Value ETF | $258.65 | -0.8% | $83.9B | 0.18% | 1.37% | +26.9% |
 IVE | iShares S&P 500 Value ETF | $239.53 | -0.8% | $51.1B | 0.18% | 1.51% | +15.0% |
 SPYV | State Street SPDR Portfolio S&P 500 Value ETF | $64.13 | -0.8% | $39.2B | 0.04% | 1.65% | +14.9% |
 IUSV | iShares Core S&P U.S.Value ETF | $115.71 | -0.8% | $28.7B | 0.04% | 1.63% | +14.9% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| JBL | Jabil Inc | 0.02% | $272.72 | -5.2% | $28.1B | 27.9 | 0.12% |
 NRG | NRG Energy Inc | 0.01% | $96.06 | -1.5% | $20.2B | 25.4 | 2.01% |
| ATO | Atmos Energy Corp | 0.01% | $172.41 | +0.8% | $29.1B | 20.5 | 2.32% |
 TPR | Tapestry Inc | 0.01% | $116.29 | -1.3% | $23.1B | 16.0 | 1.61% |
 UTHR | United Therapeutics Corp | 0.01% | $598.72 | +0.9% | $25.7B | 21.4 | - |
| WSM | Williams-Sonoma Inc | 0.01% | $252.72 | -2.8% | $29.8B | 25.9 | 1.14% |
Vanguard Small-Cap Value ETF Investor Checkpoints
These are the points to review before investing in VBR. It is a core-complement asset that adds small-cap value exposure, but small-cap volatility, value-style cycles and currency effects should be checked before making an investment decision.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the effect of cumulative costs over a long holding period | Low |
| 📊 Market-Cap Range | Whether it overlaps with or complements large-cap ETFs | Small-cap territory |
| 🔁 Style Exposure | Check where the value style cycle stands | Needs review |
| 💱 Exchange Rate | Effect on returns converted into won | Unhedged |
Small-cap volatility and the value-style cycle are the main drivers of short-term performance. Relative underperformance can appear in phases of growth-stock strength, and the deeper drawdowns typical of small caps can appear during market corrections.
For long-term investors who want to add small-cap value exposure to a large-cap-centered portfolio, it is a reasonable choice in terms of low fees and diversification. We recommend comparing fees and composition with SLYV and IJS in the same small-cap value space before deciding.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
Today's 5 AI picks, all free