Dividend comparison
VB vs VTWO: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard Morningstar Small-Cap ETF and Vanguard Russell 2000 ETF, side by side. Updated October 21, 2026.
VB vs VTWO: key differences
The short answer, from the latest data on this page.
- Fees. VB is cheaper at 0.03% a year versus 0.06% for VTWO. On $10,000 that is $3 a year less in fees.
- Income. Their trailing yields are almost the same: 1.27% for VB and 1.22% for VTWO. VB pays quarterly, VTWO pays annual.
- Performance. Over the last 5 years, VB returned 33.5% versus 29.6% for VTWO, with dividends reinvested. $10,000 would have grown to $13,349 in VB and $12,963 in VTWO.
- Risk. VTWO has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -31.9%, against -28.2% for VB.
- Diversification. VTWO holds 1,969 positions and VB holds 1,357. The ten largest positions make up 5.0% of VB and 3.3% of VTWO.
- Dividend growth. VB grew its yearly payout 5.3% a year over the last 4 years, versus 5.1% for VTWO.
- Size. VB is the larger fund with $175.8 billion in assets, against $17.3 billion for VTWO.
Bottom line: VB has the edge on these figures, with lower fees, stronger 5-year returns and smaller drawdowns. VTWO does not lead on any of the measures compared here.
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 | VTWO Vanguard Russell 2000 ETF |
|---|---|---|
| Dividend yield (TTM) | 1.27% | 1.22% |
| Dividend / share (TTM) | $3.65 | $1.36 |
| Payout frequency | Quarterly | Annual |
| Last dividend | $0.8488 on Sep 30, 2026 | $0.3911 on Sep 25, 2026 |
| Ex-dividend date | Sep 28, 2026 | Sep 23, 2026 |
| Dividend growth (CAGR) | 5.3% over 4 yrs | 5.1% over 4 yrs |
| Price | $288.04 | $111.40 |
| Dividend growth streak | 1 year | 1 year |
| Beta | 1.07 | 1.14 |
| Max drawdown (5Y) | -28.2% | -31.9% |
| Market cap | $175.84B | $17.30B |
| Exchange | AMEX | NASDAQ |
| Expense ratio | 0.03% | 0.06% |
| Assets under management | $175.80B | $17.30B |
| Number of holdings | 1357 | 1969 |
| Top 10 concentration | 5.0% | 3.3% |
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
VTWO
$10.15/mo
$122 /yr at 1.22% yield
Dividend history
Total dividends paid per share in each calendar year. VB pays quarterly; VTWO pays annual.
| Year | VB | VTWO |
|---|---|---|
| 2025 | $3.4386 | $1.2429 |
| 2024 | $3.1318 | $1.0821 |
| 2023 | $3.3170 | $1.1739 |
| 2022 | $2.9121 | $1.0413 |
| 2021 | $2.7956 | $1.0173 |
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 $12,963 in VTWO.
| Period | VB | VTWO |
|---|---|---|
| 1 month | -0.54% | -2.94% |
| 3 months | -2.76% | -5.41% |
| Year to date | 11.67% | 12.89% |
| 1 year | 12.20% | 12.46% |
| 3 years | 64.64% | 71.49% |
| 5 years | 33.49% | 29.63% |
- VB
- VTWO
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
- VTWO
VB vs VTWO holdings overlap
At least 0% overlap by weight, with 0 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
Top 10 holdings
Largest positions by portfolio weight.
VB1357 holdings total
Quick verdict
VB has the edge on these figures, with lower fees, stronger 5-year returns and smaller drawdowns. VTWO does not lead on any of the measures compared here. 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 VTWO fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is VB or VTWO better for dividend income?
It depends on your goals. VB currently yields 1.27% Trailing Twelve Months (TTM) while VTWO yields 1.22%. 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 VTWO?
Vanguard Morningstar Small-Cap ETF (VB) is an ETF listed on AMEX. Vanguard Russell 2000 ETF (VTWO) is an ETF listed on NASDAQ. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VB or VTWO?
VB has the lower expense ratio. VB charges 0.03% a year and VTWO charges 0.06%, a difference of $3 a year on a $10,000 investment.
Which has performed better, VB or VTWO?
Over the last 5 years, VB has the higher total return with dividends reinvested: VB returned 33.5% and VTWO returned 29.6%. Past performance does not predict future returns.
Which is riskier, VB or VTWO?
Measured by the worst peak-to-trough decline over the last five years, VTWO has been riskier: VB fell as much as 28.2% and VTWO as much as 31.9%. Their betas are 1.07 and 1.14.
How often do VB and VTWO pay dividends?
VB pays quarterly and VTWO pays annual.
How much income does $10,000 in VB vs VTWO generate?
At current TTM yields, $10,000 in VB would generate roughly $10.56 per month ($127 annually). The same amount in VTWO would produce about $10.15 per month ($122 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VB and VTWO?
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 VTWO with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VB and VTWO 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.