Average Daily Volume
587.4K
Fund Overview
Vanguard Small-Cap Value ETF (VBR) is an exchange-traded fund that seeks to track the performance of the CRSP US Small Cap Value Index. This index measures the investment return of small-capitalization value stocks in the United States. VBR provides investors with exposure to a diversified portfolio of small-cap companies that are considered undervalued based on fundamental metrics such as price-to-book ratio, dividend yield, and earnings growth potential. The fund is designed for long-term investors seeking capital appreciation and potential income through dividends. With a low expense ratio, VBR is a cost-effective way to gain access to the small-cap value segment of the U.S. equity market.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
Yes
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.99 %
- Currency Hedged
-
No
- Portfolio Turnover
-
16 %
- Dividend Date
-
Why Invest in the VBR ETF?
Potential Benefits
- Provides diversified exposure to small-cap value stocks, which historically have outperformed growth stocks over long periods.
- Low expense ratio compared to many actively managed funds, reducing drag on returns.
- Offers potential for higher returns compared to large-cap stocks, albeit with higher volatility.
- Dividend-paying stocks in the portfolio may provide income in addition to capital appreciation.
- Passive management strategy minimizes turnover and trading costs.
Potential Risks
- Small-cap stocks are more volatile and sensitive to economic downturns than large-cap stocks.
- Value stocks may underperform growth stocks during certain market cycles.
- Concentration in smaller companies increases exposure to business-specific risks.
- Limited international exposure may reduce diversification benefits.
- Dividend payments are not guaranteed and may fluctuate with company performance.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+5.3%
|
+3.1%
|
-5.0%
|
+7.0%
|
+1.0%
|
+3.9%
|
+0.7%
|
+0.3%
|
-5.4%
|
+1.3%
|
-
|
-
|
| 2025 |
+3.6%
|
-3.7%
|
-5.2%
|
-3.4%
|
+5.0%
|
+3.7%
|
+1.7%
|
+5.3%
|
+0.4%
|
-1.1%
|
+2.5%
|
+0.5%
|
| 2024 |
-2.5%
|
+4.1%
|
+5.6%
|
-6.0%
|
+4.2%
|
-2.3%
|
+8.7%
|
+0.1%
|
+1.6%
|
-1.0%
|
+8.8%
|
-7.8%
|
| 2023 |
+9.1%
|
-2.3%
|
-5.7%
|
-1.0%
|
-3.4%
|
+9.5%
|
+5.4%
|
-3.4%
|
-4.8%
|
-4.8%
|
+8.7%
|
+9.8%
|
| 2022 |
-4.4%
|
+1.6%
|
+1.6%
|
-6.3%
|
+1.9%
|
-10.3%
|
+9.8%
|
-2.7%
|
-9.9%
|
+12.0%
|
+5.6%
|
-5.7%
|
| 2021 |
+2.0%
|
+8.8%
|
+5.3%
|
+4.0%
|
+2.2%
|
-1.0%
|
-1.6%
|
+2.1%
|
-2.6%
|
+4.6%
|
-3.0%
|
+4.9%
|
| 2020 |
-3.4%
|
-10.2%
|
-25.1%
|
+13.1%
|
+4.8%
|
+2.1%
|
+3.3%
|
+4.6%
|
-3.7%
|
+3.1%
|
+17.4%
|
+6.8%
|
| 2019 |
+11.2%
|
+4.0%
|
-1.9%
|
+3.9%
|
-8.1%
|
+6.8%
|
+0.8%
|
-5.4%
|
+4.0%
|
+1.7%
|
+2.5%
|
+2.8%
|
| 2018 |
+1.9%
|
-4.7%
|
+0.8%
|
+0.4%
|
+4.5%
|
+0.4%
|
+2.5%
|
+2.4%
|
-1.7%
|
-9.0%
|
+2.4%
|
-11.4%
|
| 2017 |
+0.7%
|
+2.0%
|
-0.7%
|
+0.4%
|
-2.4%
|
+2.4%
|
+1.0%
|
-1.5%
|
+5.0%
|
+0.9%
|
+3.2%
|
+0.5%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
SW
|
SMURFIT WESTROCK PLC |
0.8 % |
|
WSM
|
WILLIAMS-SONOMA INC |
0.7 % |
|
ATO
|
ATMOS ENERGY CORP |
0.7 % |
|
EXE
|
EXPAND ENERGY CORP ORDINARY SHARES NEW |
0.6 % |
|
NRG
|
NRG ENERGY INC |
0.6 % |
|
FCNCA
|
FIRST CITIZENS BANCSHARES INC CLASS A |
0.6 % |
|
TPR
|
TAPESTRY INC |
0.6 % |
|
EME
|
EMCOR GROUP INC |
0.5 % |
|
EQH
|
EQUITABLE HOLDINGS INC |
0.5 % |
|
FFIV
|
F5 INC |
0.5 % |
Top 10 holdings shown, out of 836 total holdings.
Related ETFs: VBR vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VBR tracks the CRSP US Small Cap Value Index, which uses a multi-factor approach to identify value stocks in the small-cap universe. The index methodology considers fundamental factors including book-to-price ratio, forward earnings-to-price ratio, historical earnings-to-price ratio, dividend-to-price ratio, and sales-to-price ratio. The fund holds approximately 800-1,000 stocks, providing broad diversification across the small-cap value space. VBR is passively managed and follows a full replication strategy, meaning it holds all (or nearly all) of the securities in its target index. The fund is reconstituted annually and rebalanced quarterly to maintain alignment with the index.
Frequently Asked Questions
What is the difference between VBR and VB (Vanguard Small-Cap ETF)?
VBR focuses specifically on small-cap value stocks, while VB includes all small-cap stocks regardless of valuation characteristics. VBR will typically have lower valuation multiples and higher dividend yields than VB.
How often does VBR pay dividends?
VBR pays dividends quarterly, typically in March, June, September, and December. The dividend amount varies based on the income generated by the underlying stocks.
Is VBR suitable for income investors?
While VBR does provide some dividend income, it's primarily designed for capital appreciation. The dividend yield is typically higher than the broader market but lower than many dedicated income funds.
How does VBR perform during market downturns?
Small-cap value stocks, including those in VBR, tend to be more volatile than large-cap stocks during market downturns. However, value stocks have historically recovered well after market bottoms.
What percentage of VBR is in financial stocks?
As of the most recent data, financial stocks typically make up about 25-30% of VBR's portfolio, which is common for value-oriented funds as financials often trade at lower valuations.
Industry Overview
The Vanguard Small-Cap Value ETF (VBR) is part of the small-cap value segment of the U.S. equity market. Small-cap value stocks are companies with market capitalizations typically between $300 million and $2 billion that trade at lower valuations relative to their fundamentals. This segment often includes companies in financial services, industrials, and consumer discretionary sectors. Investing in small-cap value stocks can offer higher growth potential compared to large-cap stocks, but it also comes with increased volatility and risk. VBR provides a cost-effective way to gain exposure to this segment while benefiting from Vanguard's reputation for low-cost index investing.
Alternative Comparison
Compared to similar small-cap value ETFs like IJS (iShares S&P Small-Cap 600 Value ETF) and SLYV (SPDR S&P 600 Small Cap Value ETF), VBR offers broader diversification with its approximately 800-1,000 holdings versus about 450 for IJS/SLYV. While IJS and SLYV track the S&P 600 Value Index which has slightly higher profitability screens, VBR's CRSP-based approach includes more companies and has a slightly lower expense ratio (0.07% vs. 0.18% for IJS and 0.15% for SLYV). For investors seeking even deeper value exposure, RZV (Invesco S&P SmallCap 600 Pure Value ETF) takes a more concentrated approach with only about 150 stocks, resulting in higher volatility but potentially greater value characteristics.
Issuer Overview
Vanguard is one of the world's largest investment management companies, known for its low-cost index funds and ETFs. Founded by John C. Bogle in 1975, Vanguard pioneered the concept of index investing for individual investors. The company operates as a client-owned mutual structure, meaning its funds are owned by the investors in those funds. This unique structure allows Vanguard to offer some of the lowest expense ratios in the industry. Vanguard is particularly strong in passive investment strategies, with a wide range of index funds and ETFs covering various asset classes and market segments.
Conclusion
VBR represents a core holding for investors seeking exposure to the small-cap value segment of the U.S. equity market. Its low expense ratio, broad diversification, and Vanguard's reputation make it a compelling choice for long-term investors. While small-cap value investing comes with higher volatility, the potential for outperformance over full market cycles may reward patient investors. As with any investment, investors should consider their risk tolerance and investment horizon before allocating to VBR or any small-cap value fund.
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