Dividend comparison
VB vs VO: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard Morningstar Small-Cap ETF and Vanguard Morningstar Mid-Cap ETF, side by side. Updated October 21, 2026.
VB vs VO: key differences
The short answer, from the latest data on this page.
- Fees. Both charge about 0.03% a year, so cost is not what separates them.
- Income. Their trailing yields are almost the same: 1.27% for VB and 1.36% for VO. VB pays quarterly, VO pays annual.
- Performance. Over the last 5 years, VO returned 38.7% versus 33.5% for VB, with dividends reinvested. $10,000 would have grown to $13,870 in VO and $13,349 in VB.
- Risk. Their worst declines over the last 5 years were similar: -28.2% for VB and -27.6% for VO from peak to trough.
- Diversification. VB holds 1,357 positions and VO holds 307. The ten largest positions make up 5.0% of VB and 9.7% of VO.
- Overlap. At least 0% of the two portfolios overlap by weight, across 1 shared holdings. They mostly own different companies, so they can complement each other.
- Dividend growth. VO grew its yearly payout 11.5% a year over the last 4 years, versus 5.3% for VB.
Bottom line: VB fits better if you care most about broader diversification. VO fits better if you care most about stronger 5-year returns and faster dividend growth.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | VB Vanguard Morningstar Small-Cap ETF | VO Vanguard Morningstar Mid-Cap ETF |
|---|---|---|
| Dividend yield (TTM) | 1.27% | 1.36% |
| Dividend / share (TTM) | $3.65 | $1.10 |
| Payout frequency | Quarterly | Annual |
| Last dividend | $0.8488 on Sep 30, 2026 | $0.2899 on Sep 30, 2026 |
| Ex-dividend date | Sep 28, 2026 | Sep 28, 2026 |
| Dividend growth (CAGR) | 5.3% over 4 yrs | 11.5% over 4 yrs |
| Price | $288.04 | $80.93 |
| Dividend growth streak | 1 year | 4 years |
| Beta | 1.07 | 1.00 |
| Max drawdown (5Y) | -28.2% | -27.6% |
| Market cap | $175.84B | $216.50B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.03% | 0.03% |
| Assets under management | $175.80B | $216.50B |
| Number of holdings | 1357 | 307 |
| Top 10 concentration | 5.0% | 9.7% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
VB
$10.56/mo
$127 /yr at 1.27% yield
VO
$11.34/mo
$136 /yr at 1.36% yield
Dividend history
Total dividends paid per share in each calendar year. VB pays quarterly; VO pays annual.
| Year | VB | VO |
|---|---|---|
| 2025 | $3.4386 | $1.1052 |
| 2024 | $3.1318 | $0.9856 |
| 2023 | $3.3170 | $0.8837 |
| 2022 | $2.9121 | $0.8166 |
| 2021 | $2.7956 | $0.7156 |
Strategy: Small and mid cap
Funds that hold companies below the large-cap tier, where there is more room for growth and less coverage by analysts. Small-cap indexes differ meaningfully: some screen for profitability, some include every listed company, and value-tilted funds lean toward the cheapest names. Those rules drive more of the difference between funds than fees do.
Smaller companies are more sensitive to recessions and borrowing costs, so drawdowns run deeper than in large-cap funds.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $13,349 in VB and $13,870 in VO.
| Period | VB | VO |
|---|---|---|
| 1 month | -0.54% | 1.53% |
| 3 months | -2.76% | 1.63% |
| Year to date | 11.67% | 12.73% |
| 1 year | 12.20% | 12.40% |
| 3 years | 64.64% | 68.29% |
| 5 years | 33.49% | 38.70% |
- VB
- VO
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- VB
- VO
VB vs VO holdings overlap
At least 0% overlap by weight, with 1 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | VB weight | VO weight |
|---|---|---|
| ALABAstera Labs Inc | 0.28% | 0.55% |
Top 10 holdings
Largest positions by portfolio weight.
VB1357 holdings total
Quick verdict
VB fits better if you care most about broader diversification. VO fits better if you care most about stronger 5-year returns and faster dividend growth. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how VB vs VO fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is VB or VO better for dividend income?
It depends on your goals. VB currently yields 1.27% Trailing Twelve Months (TTM) while VO yields 1.36%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between VB and VO?
Vanguard Morningstar Small-Cap ETF (VB) is an ETF listed on AMEX. Vanguard Morningstar Mid-Cap ETF (VO) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VB or VO?
They cost about the same: VB charges 0.03% a year and VO charges 0.03%.
Which has performed better, VB or VO?
Over the last 5 years, VO has the higher total return with dividends reinvested: VB returned 33.5% and VO returned 38.7%. Past performance does not predict future returns.
Which is riskier, VB or VO?
Measured by the worst peak-to-trough decline over the last five years, VB has been riskier: VB fell as much as 28.2% and VO as much as 27.6%. Their betas are 1.07 and 1.00.
How much do VB and VO overlap?
At least 0% of the two portfolios overlap by weight, across 1 shared holdings. The largest shared positions are ALAB. Holding both still adds meaningful diversification.
How often do VB and VO pay dividends?
VB pays quarterly and VO pays annual.
How much income does $10,000 in VB vs VO generate?
At current TTM yields, $10,000 in VB would generate roughly $10.56 per month ($127 annually). The same amount in VO would produce about $11.34 per month ($136 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VB and VO?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare VB vs VO with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VB and VO fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.