# VB ETF: fees, returns, drawdowns and holdings

> What VB holds, its 0.03% yearly fee, returns by year, its worst drop, and which Tactfolio strategies hold it. Updated daily.

Vanguard Morningstar Small-Cap ETF (VB) is an exchange-traded fund (ETF) run by Vanguard. This fund owns shares of about 1,300 small US companies. It charges 0.03% a year. From January 2004 to October 2026 it returned about 9.6% a year, and its worst drop was −59.6%.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 16, 2026.

## Key points

- Expense ratio: 0.03% a year (about $3 on $10,000).
- Started trading on January 26, 2004.
- Last close: $284.32 on October 16, 2026.
- Return over the last year: 13.8%.
- Worst drop since 2004: −59.6%.
- No Tactfolio classic strategies hold it.

## How has VB done since 2004?

From January 2004 to October 2026, VB returned about 9.6% a year. The S&P 500 returned about 10.8% a year over the same dates. Say you put in $10,000 at the start. It would have been worth about $80,288 at the end, with every dividend reinvested.

| Period | VB | S&P 500 (SPY) |
| --- | --- | --- |
| 1 month | −1.3% | 1.5% |
| 3 months | −4.3% | 1.9% |
| 6 months | 2.3% | 9.3% |
| Year to date | 11.3% | 12.8% |
| 1 year | 13.8% | 16.8% |
| 3 years, per year | 16.6% | 22.0% |
| 5 years, per year | 6.2% | 12.8% |
| 10 years, per year | 10.7% | 15.4% |
| Since 2004, per year | 9.6% | 10.8% |

Periods longer than a year show the return per year (CAGR). Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## VB returns by month and year

VB rose in 172 of its 273 months (63%). Its best month was April 2009, at 18.7%. Its worst was March 2020, at −22.0%.

| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Full year |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2026 (part) | 4.6% | 2.7% | −5.1% | 8.6% | 3.2% | 3.6% | −2.6% | 1.4% | −4.6% | −0.1% |  |  | 11.3% |
| 2025 | 3.9% | −4.8% | −6.3% | −2.5% | 5.6% | 4.2% | 1.9% | 4.5% | 1.0% | 0.3% | 1.5% | 0.0% | 8.9% |
| 2024 | −2.7% | 5.8% | 4.4% | −6.5% | 4.0% | −1.5% | 7.0% | 0.0% | 1.9% | −0.7% | 10.5% | −7.4% | 14.2% |
| 2023 | 10.2% | −2.3% | −3.6% | −1.2% | −2.0% | 8.7% | 5.0% | −3.7% | −5.6% | −5.8% | 9.2% | 10.3% | 18.2% |
| 2022 | −7.9% | 0.9% | 1.5% | −8.2% | 0.0% | −9.4% | 10.6% | −2.6% | −9.6% | 9.9% | 4.4% | −5.8% | −17.5% |
| 2021 | 2.0% | 6.2% | 1.8% | 3.9% | 0.0% | 1.5% | −1.5% | 2.0% | −3.1% | 5.0% | −4.3% | 3.4% | 17.6% |
| 2020 | −2.0% | −8.5% | −22.0% | 14.5% | 7.6% | 2.6% | 4.6% | 4.0% | −2.6% | 2.1% | 15.8% | 7.5% | 19.2% |
| 2019 | 11.7% | 4.9% | −0.9% | 3.6% | −7.2% | 7.0% | 1.2% | −4.0% | 1.4% | 1.7% | 4.2% | 2.2% | 27.3% |
| 2018 | 2.7% | −4.0% | 1.1% | 0.4% | 5.1% | 0.7% | 1.8% | 4.5% | −1.5% | −10.1% | 2.2% | −11.1% | −9.3% |
| 2017 | 1.5% | 2.3% | −0.2% | 0.9% | −1.1% | 2.2% | 1.2% | −0.9% | 4.4% | 1.6% | 3.0% | 0.4% | 16.3% |
| 2016 | −7.5% | 0.8% | 8.5% | 1.8% | 1.9% | 0.3% | 5.0% | 0.7% | 0.4% | −4.1% | 8.6% | 1.9% | 18.4% |
| 2015 | −2.1% | 5.8% | 1.5% | −2.0% | 2.0% | −0.8% | −0.3% | −5.8% | −4.5% | 5.7% | 1.8% | −4.2% | −3.8% |
| 2014 | −2.1% | 5.1% | −0.2% | −2.4% | 1.3% | 5.0% | −5.0% | 5.1% | −5.3% | 4.5% | 1.1% | 1.3% | 7.6% |
| 2013 | 6.3% | 1.3% | 4.7% | 0.3% | 3.6% | −1.1% | 6.8% | −3.2% | 5.9% | 3.2% | 2.7% | 2.5% | 37.7% |
| 2012 | 7.0% | 3.3% | 2.3% | −1.0% | −6.7% | 4.6% | −1.0% | 3.6% | 2.8% | −1.4% | 1.3% | 3.0% | 18.3% |
| 2011 | 0.7% | 5.5% | 2.4% | 2.9% | −2.0% | −2.1% | −3.6% | −8.3% | −11.0% | 15.3% | −0.4% | 0.2% | −2.8% |
| 2010 | −3.4% | 4.8% | 8.5% | 5.6% | −7.8% | −7.7% | 7.2% | −6.6% | 12.0% | 4.1% | 3.2% | 7.8% | 28.1% |
| 2009 | −9.7% | −12.0% | 8.5% | 18.7% | 5.6% | −0.3% | 9.6% | 4.3% | 6.3% | −6.3% | 3.3% | 7.9% | 36.6% |
| 2008 | −6.4% | −2.4% | −0.9% | 5.7% | 4.8% | −8.5% | 1.5% | 3.2% | −8.9% | −21.9% | −11.4% | 5.2% | −36.2% |
| 2007 | 2.5% | −0.1% | 1.1% | 2.6% | 4.5% | −1.4% | −6.2% | 1.5% | 2.3% | 2.5% | −6.7% | −0.8% | 1.4% |
| 2006 | 7.6% | 0.2% | 4.1% | 0.1% | −5.1% | 0.0% | −3.1% | 2.3% | 0.8% | 5.1% | 3.3% | −0.1% | 15.8% |
| 2005 | −3.6% | 2.0% | −2.5% | −4.3% | 6.2% | 3.3% | 6.4% | −1.9% | 0.9% | −3.9% | 5.5% | −0.2% | 7.2% |
| 2004 (part) |  | 2.0% | 0.8% | −4.7% | 2.1% | 3.8% | −6.1% | −0.9% | 4.9% | 2.1% | 7.9% | 3.7% | 15.9% |

Each month runs from the last close of the month before. The first month counts from the first close.

## How risky is VB compared with the S&P 500?

Measured from October 2021 to October 2026, on the days both traded.

- **Beta 1.07.** When the S&P 500 moved 1% in a day, VB tended to move about 1.07%.
- **Correlation 0.89.** VB mostly moved with the S&P 500.
- **Up and down months.** In months the S&P 500 rose, VB rose 93% as much on average. In months it fell, VB fell 122% as much.

| Measure | VB | S&P 500 (SPY) |
| --- | --- | --- |
| Return per year | 6.2% | 12.8% |
| Volatility | 20.6% | 17.1% |
| Worst drop | −28.1% | −24.5% |
| Sharpe ratio | 0.40 | 0.79 |
| Sortino ratio | 0.57 | 1.15 |
| Calmar ratio | 0.22 | 0.52 |

Volatility is how much the price swings in a year. The Sharpe ratio is return per unit of volatility, the Sortino ratio counts only the falls, and the Calmar ratio is the return per year over the worst drop. Higher ratios mean more return for the risk taken.

## Is VB above its 200-day average?

VB closed 0.2% above its 200-day average on October 16, 2026. A rule that holds VB only above that average would hold it today.

- Its 50-day average is 3.9% above its 200-day average.
- It closed 7.8% below its highest close of the last 52 weeks.

A moving average is the average close over the last so many days. Trend rules such as [the 10-month moving average strategy](https://tactfolio.com/strategies/faber-10-month-moving-average.md) hold a fund only while it is above one. You can [build that rule for VB](https://tactfolio.com/builder) and backtest it in a minute.

## What was VB's worst drop?

A drawdown is how far a fund falls from its last high point. VB's worst fall was −59.6%, from July 13, 2007 to March 9, 2009. It got back to that high on December 20, 2010. On October 16, 2026 it was 7.8% below its highest close.

| Drop | Started | Bottom | Back to the high | Fall took | Recovery took |
| --- | --- | --- | --- | --- | --- |
| −59.6% | Jul 13, 2007 | Mar 9, 2009 | Dec 20, 2010 | 20 months | 21 months |
| −42.0% | Feb 20, 2020 | Mar 23, 2020 | Nov 9, 2020 | 32 days | 8 months |
| −28.3% | Apr 29, 2011 | Oct 3, 2011 | Sep 6, 2012 | 5 months | 11 months |
| −28.1% | Nov 8, 2021 | Jun 16, 2022 | Jul 16, 2024 | 7 months | 2.1 years |
| −25.4% | Nov 25, 2024 | Apr 8, 2025 | Sep 18, 2025 | 4 months | 5 months |

Big drops are normal for some funds. They matter because selling during a drop locks in the loss.

## What does VB hold?

This fund owns shares of about 1,300 small US companies. Small company stocks can rise and fall more sharply than shares of big companies. Its value goes up and down with this part of the stock market.

It tracks the Morningstar US Small Cap Index. It had 1,301 holdings as of September 30, 2026, according to Vanguard.

| Fact | VB |
| --- | --- |
| Full name | Vanguard Morningstar Small-Cap ETF |
| Issuer | Vanguard |
| Expense ratio | 0.03% a year |
| Started trading | January 26, 2004 |
| Tracks | Morningstar US Small Cap Index |
| Type | US stocks, ETF |
| Holdings | 1,301 holdings as of September 30, 2026 |
| Facts checked | October 17, 2026 on the [Vanguard fund page](https://investor.vanguard.com/investment-products/etfs/profile/vb) |

## What is the VB expense ratio?

VB charges 0.03% a year. An expense ratio is the yearly fee a fund takes to run itself. On $10,000, a 0.03% fee comes to about $3 a year. Of the 162 ETFs on Tactfolio, 85% charge more.

You never get a bill for it. The fund takes the fee out of its own value a little each day.

## Which Tactfolio strategies hold VB?

No classic strategy holds VB yet. You can add it to your own rules in the [builder](https://tactfolio.com/builder) and see how they would have done.

## How does VB compare with similar ETFs?

Funds that can stand in for VB:

- [SCHA](https://tactfolio.com/etf/SCHA.md): Schwab U.S. Small-Cap ETF, 0.03% a year
- [IJR](https://tactfolio.com/etf/IJR.md): iShares Core S&P Small-Cap ETF, 0.06% a year
- [IWM](https://tactfolio.com/etf/IWM.md): iShares Russell 2000 ETF, 0.19% a year
- [VBR](https://tactfolio.com/etf/VBR.md): Vanguard Morningstar Small-Cap Value ETF, 0.05% a year

See [all 8 VB alternatives](https://tactfolio.com/alternatives/VB.md), compared on the same dates as VB.

## Test VB in your own rules

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the [builder](https://tactfolio.com/builder), add VB, and see how a rule such as "hold it only above its 200-day average" would have done. Strategies run on daily prices and hold US stocks and ETFs only.

## The details

Prices come from Tactfolio's stored daily prices for VB and SPY. Each close is adjusted for splits, and dividends are reinvested on the day the fund pays them out. CAGR is the steady yearly return that turns the starting value into the ending value. Volatility is the yearly standard deviation of daily returns. Beta and correlation compare daily returns with the S&P 500 over the same dates.

Fund facts come from Vanguard. We checked them on October 17, 2026. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) and [how to read drawdown and CAGR](https://tactfolio.com/docs/concepts/reading-a-backtest.md) for more on these measures.

## Research and test it

- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### What is the expense ratio of VB?

VB charges 0.03% a year, according to Vanguard as of October 17, 2026. That is about $3 a year for every $10,000 you hold.

### When did VB start trading?

VB started trading on January 26, 2004. It is run by Vanguard.

### What does VB track?

VB tracks the Morningstar US Small Cap Index. This fund owns shares of about 1,300 small US companies.

### How much has VB returned per year?

From January 2004 to October 2026, VB returned about 9.6% a year with dividends reinvested. Its worst drop was −59.6%. Past returns do not tell you what it will do next.

### Is VB above its 200-day moving average?

On October 16, 2026, VB closed 0.2% above its 200-day moving average. This page updates after each US market close.

### Which strategies use VB?

None of Tactfolio's classic strategies hold VB yet. You can test it in your own rules in the builder.

## Sources

- [Vanguard: Vanguard Morningstar Small-Cap ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vb)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.