# VBR ETF: fees, returns, drawdowns and holdings

> What VBR holds, its 0.05% yearly fee, returns by year, its worst drop, and which Tactfolio strategies hold it. Updated daily.

Vanguard Morningstar Small-Cap Value ETF (VBR) is an exchange-traded fund (ETF) run by Vanguard. This fund owns shares of hundreds of small US companies that look cheap compared with measures like their earnings or sales. It charges 0.05% a year. From January 2004 to October 2026 it returned about 9.4% a year, and its worst drop was −62.0%.

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

## Key points

- Expense ratio: 0.05% a year (about $5 on $10,000).
- Started trading on January 26, 2004.
- Worst drop since 2004: −62.0%.
- 1 Tactfolio classic strategy holds it.

## What does VBR hold?

This fund owns shares of hundreds of small US companies that look cheap compared with measures like their earnings or sales. Small company stocks can rise and fall more than large company stocks. Its value goes up and down with this group of companies.

It tracks the Morningstar US Small Cap Value Index. It had 820 holdings as of September 30, 2026, according to Vanguard.

| Fact | VBR |
| --- | --- |
| Full name | Vanguard Morningstar Small-Cap Value ETF |
| Issuer | Vanguard |
| Expense ratio | 0.05% a year |
| Started trading | January 26, 2004 |
| Tracks | Morningstar US Small Cap Value Index |
| Type | US stocks, ETF |
| Holdings | 820 holdings as of September 30, 2026 |
| Facts checked | October 16, 2026 on the [Vanguard fund page](https://investor.vanguard.com/investment-products/etfs/profile/vbr) |

## What is the VBR expense ratio?

VBR charges 0.05% a year. An expense ratio is the yearly fee a fund takes to run itself. On $10,000, a 0.05% fee comes to about $5 a year.

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

## How has VBR done since 2004?

From January 2004 to October 2026, VBR returned about 9.4% a year. Say you put in $10,000 at the start. It would have been worth about $77,179 at the end, with every dividend reinvested.

| Measure | VBR |
| --- | --- |
| Total return | 671.8% |
| Return per year (CAGR) | 9.4% |
| Worst drop from a high | −62.0% |
| Volatility (how much it swings) | 22.7% |
| Last 12 months | 17.5% |
| Last 3 years, per year | 16.8% |
| Last 5 years, per year | 8.3% |
| Last 10 years, per year | 10.4% |

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.

## VBR returns by year

| Year | VBR return |
| --- | --- |
| 2026 (part of the year) | 13.3% |
| 2025 | 9.1% |
| 2024 | 12.4% |
| 2023 | 16.0% |
| 2022 | −9.4% |
| 2021 | 28.1% |
| 2020 | 5.9% |
| 2019 | 22.8% |
| 2018 | −12.3% |
| 2017 | 11.8% |
| 2016 | 24.9% |
| 2015 | −4.8% |
| 2014 | 10.6% |
| 2013 | 36.6% |
| 2012 | 19.0% |
| 2011 | −4.2% |
| 2010 | 25.1% |
| 2009 | 30.9% |
| 2008 | −32.2% |
| 2007 | −6.9% |
| 2006 | 19.5% |
| 2005 | 6.2% |
| 2004 (part of the year) | 20.5% |

## What was VBR's worst drop?

A drawdown is how far a fund falls from its last high point. VBR's worst fall was −62.0%, from June 4, 2007 to March 9, 2009. It got back to that high on February 14, 2011.

The chart shows how far below its last high the fund was on each day. Big drops are normal for some funds. They matter because selling during a drop locks in the loss.

## Which Tactfolio strategies hold VBR?

One classic strategy holds VBR at least some of the time. Each is a set of written rules you can open, test and copy.

- [Golden Butterfly Portfolio](https://tactfolio.com/strategies/golden-butterfly-portfolio.md), by Tyler (Portfolio Charts), 2015

## How does VBR compare with similar ETFs?

Funds that can stand in for VBR:

- [IJS](https://tactfolio.com/etf/ijs.md): iShares S&P Small-Cap 600 Value ETF, 0.18% a year
- [IWN](https://tactfolio.com/etf/iwn.md): iShares Russell 2000 Value ETF, 0.24% a year
- [AVUV](https://tactfolio.com/etf/avuv.md): Avantis U.S. Small Cap Value ETF, 0.25% a year
- [SCHA](https://tactfolio.com/etf/scha.md): Schwab U.S. Small-Cap ETF, 0.03% a year

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

## Test VBR 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 VBR, 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 VBR. 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.

Fund facts come from Vanguard. We checked them on October 16, 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 VBR?

VBR charges 0.05% a year, according to Vanguard as of October 16, 2026. That is about $5 a year for every $10,000 you hold.

### When did VBR start trading?

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

### What does VBR track?

VBR tracks the Morningstar US Small Cap Value Index. This fund owns shares of hundreds of small US companies that look cheap compared with measures like their earnings or sales.

### How much has VBR returned per year?

From January 2004 to October 2026, VBR returned about 9.4% a year with dividends reinvested. Its worst drop was −62.0%. Past returns do not tell you what it will do next.

### Which strategies use VBR?

One of Tactfolio's classic strategies hold VBR, including Golden Butterfly Portfolio.

## Sources

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

> 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.