Dividend comparison
VTWO vs VBR: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard Russell 2000 ETF and Vanguard Morningstar Small-Cap Value ETF, side by side. Updated October 21, 2026.
VTWO vs VBR: key differences
The short answer, from the latest data on this page.
- Fees. VBR is cheaper at 0.05% a year versus 0.06% for VTWO. On $10,000 that is $1 a year less in fees.
- Income. VBR pays more income, yielding 1.85% over the last twelve months versus 1.22% for VTWO. That is about $63 more a year on $10,000. VTWO pays annual, VBR pays quarterly.
- Performance. Over the last 5 years, VBR returned 45.7% versus 29.6% for VTWO, with dividends reinvested. $10,000 would have grown to $14,570 in VBR 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 -24.2% for VBR.
- Diversification. VTWO holds 1,969 positions and VBR holds 841. The ten largest positions make up 3.3% of VTWO and 5.7% of VBR.
- Dividend growth. VBR grew its yearly payout 7.2% a year over the last 4 years, versus 5.1% for VTWO.
- Size. VBR is the larger fund with $64.1 billion in assets, against $17.3 billion for VTWO.
Bottom line: VTWO fits better if you care most about broader diversification. VBR fits better if you care most about more income today, stronger 5-year returns, smaller drawdowns and faster dividend growth.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | VTWO Vanguard Russell 2000 ETF | VBR Vanguard Morningstar Small-Cap Value ETF |
|---|---|---|
| Dividend yield (TTM) | 1.22% | 1.85% |
| Dividend / share (TTM) | $1.36 | $4.42 |
| Payout frequency | Annual | Quarterly |
| Last dividend | $0.3911 on Sep 25, 2026 | $1.0300 on Sep 30, 2026 |
| Ex-dividend date | Sep 23, 2026 | Sep 28, 2026 |
| Dividend growth (CAGR) | 5.1% over 4 yrs | 7.2% over 4 yrs |
| Price | $111.40 | $238.81 |
| Dividend growth streak | 1 year | 5 years |
| Beta | 1.14 | 0.97 |
| Max drawdown (5Y) | -31.9% | -24.2% |
| Market cap | $17.30B | $64.10B |
| Exchange | NASDAQ | AMEX |
| Expense ratio | 0.06% | 0.05% |
| Assets under management | $17.30B | $64.10B |
| Number of holdings | 1969 | 841 |
| Top 10 concentration | 3.3% | 5.7% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
VTWO
$10.15/mo
$122 /yr at 1.22% yield
VBR
$15.42/mo
$185 /yr at 1.85% yield
Dividend history
Total dividends paid per share in each calendar year. VTWO pays annual; VBR pays quarterly.
| Year | VTWO | VBR |
|---|---|---|
| 2025 | $1.2429 | $4.1371 |
| 2024 | $1.0821 | $3.9201 |
| 2023 | $1.1739 | $3.8078 |
| 2022 | $1.0413 | $3.2283 |
| 2021 | $1.0173 | $3.1305 |
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 $12,963 in VTWO and $14,570 in VBR.
| Period | VTWO | VBR |
|---|---|---|
| 1 month | -2.94% | 0.45% |
| 3 months | -5.41% | -2.18% |
| Year to date | 12.89% | 12.76% |
| 1 year | 12.46% | 14.59% |
| 3 years | 71.49% | 63.48% |
| 5 years | 29.63% | 45.70% |
- VTWO
- VBR
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.
- VTWO
- VBR
VTWO vs VBR 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.
VTWO1969 holdings total
Quick verdict
VTWO fits better if you care most about broader diversification. VBR fits better if you care most about more income today, stronger 5-year returns, smaller drawdowns 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 VTWO vs VBR fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is VTWO or VBR better for dividend income?
It depends on your goals. VTWO currently yields 1.22% Trailing Twelve Months (TTM) while VBR yields 1.85%. 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 VTWO and VBR?
Vanguard Russell 2000 ETF (VTWO) is an ETF listed on NASDAQ. Vanguard Morningstar Small-Cap Value ETF (VBR) 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, VTWO or VBR?
VBR has the lower expense ratio. VTWO charges 0.06% a year and VBR charges 0.05%, a difference of $1 a year on a $10,000 investment.
Which has performed better, VTWO or VBR?
Over the last 5 years, VBR has the higher total return with dividends reinvested: VTWO returned 29.6% and VBR returned 45.7%. Past performance does not predict future returns.
Which is riskier, VTWO or VBR?
Measured by the worst peak-to-trough decline over the last five years, VTWO has been riskier: VTWO fell as much as 31.9% and VBR as much as 24.2%. Their betas are 1.14 and 0.97.
How often do VTWO and VBR pay dividends?
VTWO pays annual and VBR pays quarterly.
How much income does $10,000 in VTWO vs VBR generate?
At current TTM yields, $10,000 in VTWO would generate roughly $10.15 per month ($122 annually). The same amount in VBR would produce about $15.42 per month ($185 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VTWO and VBR?
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 VTWO vs VBR with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VTWO and VBR 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.