VBR ETF guide. Cost, sectors and top holdings in one place.
VBR tracks the Morningstar US Small Cap Value Index and holds about 820 value style small U.S. companies. See what it costs to hold each year, what it pays, what sits inside and how it has returned.
One ticker.
What VBR is, in plain words.
VBR tracks the Morningstar US Small Cap Value Index and holds about 820 value style small U.S. companies. The fund is managed by Vanguard, trades on NYSE Arca in U.S. dollars and launched on Jan 26, 2004. On Oct 31, 2026 it held $35.1B in net assets and its expense ratio was 0.05%. VBR holds only the value style half of the small cap market.
Investors search for VBR ETF because they want a clear answer to four practical questions. What does it cost to hold each year, what does it pay, what is actually inside, and how does it fit in a Roth IRA, a traditional IRA or 401(k), or a taxable account. This guide answers each one with dated figures from the issuer, and marks anything the issuer page does not publish as Not captured.
Key takeaways
- What it is. VBR tracks the Morningstar US Small Cap Value Index and holds about 820 value style small U.S. companies.
- Cost. Expense ratio 0.05%, about $5 a year on $10,000.
- Income. Trailing yield 1.98%, paid quarterly.
- Risk. Small company stocks can fall sharply in a weak year.
It suits you if
- You want exposure to small U.S. companies in one fund.
- You already hold a large company fund and want to add smaller companies.
- You can accept larger swings than large company funds, since small companies fall harder in a downturn.
Look elsewhere if
- You want large companies in the same fund.
- You want steady income, since small companies pay low dividends.
- You cannot accept a drop of a third or more in a bad market.
What VBR holds.
The 10 largest stock positions inside VBR, as of Sep 30, 2026. Pick a number to see how much of the fund they make up.
The ten largest holdings and the group split are shown below from the issuer page. A small cap fund spreads money across many small companies, so no single name moves the fund much, but the whole group can swing together.
VBR yield and distributions.
VBR pays distributions in Mar, Jun, Sep, Dec, which makes it a quarterly payer. The issuer page showed a SEC yield of 1.98% dated Oct 31, 2026. The most recent payment in the log was $1.0300 per share with an ex-date of Sep 28, 2026.
A yield is a snapshot, not a promise. The payment moves each period with the dividends and interest the fund receives, and some years include capital gains or return of capital that do not repeat. Read the year by year table below before building a plan around a single quarter. If you reinvest distributions, the payment still counts as income for tax purposes in a taxable account.
Recent distributions per share
Total distribution per share is shown on each bar. A tinted bar includes a reinvested year end amount.
Income estimate at the current yield
Uses the 1.98% yield dated Oct 31, 2026. Actual payments move each period.
Every payment, and the year by year record.
The ex-date is the cut-off, so you must hold shares before it to receive that payment. Amounts are per share in U.S. dollars from the issuer page.
Payment log
| Ex-date | Payable | Cash | Total |
|---|---|---|---|
| Sep 28, 2026 | — | $1.03000 | $1.03000 |
| Jun 26, 2026 | — | $1.09040 | $1.09040 |
| Mar 27, 2026 | — | $1.24370 | $1.24370 |
| Dec 22, 2025 | — | $1.05620 | $1.05620 |
| Sep 29, 2025 | — | $0.92790 | $0.92790 |
| Jun 30, 2025 | — | $0.91080 | $0.91080 |
| Mar 27, 2025 | — | $1.24220 | $1.24220 |
| Dec 23, 2024 | — | $1.09110 | $1.09110 |
The issuer reports the tax character of each payout after year end. Use the Form 1099-DIV from your broker for your own return.
What VBR costs to hold each year.
The expense ratio of 0.05% means the fund keeps about $5 a year for every $10,000 you hold. That cost is taken out of the fund price in small daily amounts, so you never see a bill, but it lowers your return every year. Over ten years on a flat $10,000 the expense ratio adds up to roughly $50, before any growth.
Two other costs sit outside the expense ratio. Trading commissions depend on your brokerage, and most large U.S. brokerages now charge nothing to buy ETFs. The bid and ask spread is a small cost you pay each time you trade, and for the largest funds it is usually tiny.
Expense ratio cost at common amounts
| Amount held | Per month | Per year | Over 10 years, flat | Hypothetical 2.00% fund, per year |
|---|---|---|---|---|
| $1,000 | $0.04 | $0.50 | $5 | $20 |
| $5,000 | $0.21 | $2.50 | $25 | $100 |
| $10,000 | $0.42 | $5.00 | $50 | $200 |
| $25,000 | $1.04 | $12.50 | $125 | $500 |
| $50,000 | $2.08 | $25.00 | $250 | $1,000 |
| $100,000 | $4.17 | $50.00 | $500 | $2,000 |
| $250,000 | $10.42 | $125.00 | $1,250 | $5,000 |
Flat estimates at the current expense ratio with no growth and no change in fee. Trading commissions depend on your brokerage and are not included. The 2.00% fund is a hypothetical used for scale.
Where the cost shows up
- Not as a bill. The share price and returns are already lower by the expense ratio.
- Trading cost shows up as the bid and ask spread each time you buy or sell, and as a commission if your broker charges one.
- In a taxable account, dividends are reported on Form 1099-DIV and taxed in the year they are paid.
Expense ratio cost calculator
Flat estimate at an expense ratio of 0.05% with no growth and no change in fee. It shows scale only, not a forecast.
How VBR has returned.
Calendar year returns were Not captured from the issuer page for this fund, so this guide shows the period returns the issuer publishes. Returns include fees. Past performance does not guarantee future results, and a single period tells you little about the next one.
Annualised NAV returns from the issuer, as of Oct 31, 2026. They include fees.
Past performance does not guarantee future results. Gaps are shown as Not captured because the issuer page did not publish that period.
What $10,000 became over 5 years
Using the annualised NAV return from the issuer, with distributions reinvested.
An illustration of past figures, not a forecast. It ignores taxes and trading costs.
What $10,000 became, by starting point
Each row starts a different number of years before Oct 31, 2026 and uses the issuer annualised NAV return for that period.
VBR fund facts in one place.
Every figure comes from the issuer for the date shown. A line reads Not captured when it is not published on the pages we use.
Where the companies are.
Sector exposure
What the ride can look like.
VBR can lose value, and the period returns from the issuer show the range so far.
- Market risk. The fund falls when stock markets fall.
- Small company risk. Small companies have thinner profits and less cash, so they tend to fall further than large companies in a downturn and can take longer to recover.
- Index rules. VBR holds only the value half of the small cap market, so growth style companies are mostly absent and the fund can lag when growth stocks lead.
- Interest rate risk. Small companies borrow more, so higher interest rates can squeeze their profits and their share prices.
- Distribution risk. Payments are small, change each period and are not guaranteed.
How investors use VBR.
VBR is most often used as a satellite holding, a smaller piece added on top of a broad market core. An investor who owns it is choosing to tilt the portfolio toward smaller companies, which have led and lagged large companies for years at a time.
Because small companies can lead or lag large ones for years, many investors cap it at a small share of the portfolio and rebalance. That choice is worth checking against your own situation.
Before buying VBR, check four things on the issuer page. First, confirm the expense ratio matches the figure on this page, since fees can change when an issuer cuts costs. Second, confirm the fund is eligible for the account you plan to use. Third, read the latest tax breakdown if you hold it in a taxable account. Fourth, look at the bid and ask spread on the day you trade, since a wide spread is a cost that the expense ratio does not show.
Several comparable funds exist, with expense ratios of IWM at 0.19%, VTWO at 0.06%, IJR at 0.06%, VB at 0.03%, so weigh cost together with what each fund holds, how it pays and the account you use.
No single fund is right for everyone, and this guide describes the product rather than recommending it. The figures come from the issuer and are dated. Distribution amounts, yields and holdings change, and past returns do not predict future returns. For a decision with large amounts of money, read the prospectus and the shareholder reports, and consider speaking with a licensed adviser about your own situation.
VBR against similar funds.
The same fund type from other issuers. Open a comparison for holdings overlap and returns.
| Fund | Issuer | Expense ratio | Net assets | Trailing yield |
|---|---|---|---|---|
| VBR (this fund) | Vanguard | 0.05% | $35.1B | 1.98% |
| IWM | iShares | 0.19% | $77.87B | 1.18% |
| VTWO | Vanguard | 0.06% | $17.5B | 1.20% |
| IJR | iShares | 0.06% | $106.66B | 1.58% |
| VB | Vanguard | 0.03% | $76.9B | 1.33% |
| SCHA | Schwab | 0.03% | $22.25B | 1.24% |
VBR is part of the Small Cap ETFs category on this site, grouped here with IWM, VTWO, IJR. Each comparison page lines up two funds on cost, holdings overlap, yield and returns, so you can see what separates them.
Where VBR fits.
Qualified withdrawals from a Roth IRA are tax free, so dividends and gains compound without a yearly tax bill and the expense ratio is the main drag you carry. VBR is an ordinary exchange traded fund, so most brokerages let you hold it in a Roth IRA.
Tax is deferred until you withdraw, and withdrawals are taxed as ordinary income. A 401(k) offers only the funds on its menu, so check whether VBR or a similar fund is in your plan.
Distributions are small for most small cap funds. Dividends that meet the holding rules are taxed as qualified dividends at lower long term rates in a taxable account, the rest is taxed as ordinary income, and gains are taxed when you sell. Your broker reports the amounts on Form 1099-DIV after year end, and those figures are what count on your return. ETFs also tend to pass out few capital gains because of how shares are created and redeemed.
General education, not tax advice. Rules change, so confirm with the issuer tax documents or an adviser.
Buying VBR in five steps.
- Pick the account. Roth IRA, traditional IRA, 401(k) or taxable. Most brokerages let IRAs hold ETFs like this one.
- Search the ticker. Type VBR in your brokerage and choose the U.S. listing, priced in U.S. dollars.
- Use a limit order. It sets the most you will pay and avoids surprises at the open.
- Check the cost. Most large U.S. brokerages charge no commission on ETFs, and some charge a small fee per trade.
- Set a routine. Add money on a schedule and decide whether to reinvest distributions.
Terms used on this page.
Where to go next from VBR.
Every VBR link in one place. Start with the category, then the head to head comparisons, then the guides for other funds and the tools.
CategorySmall Cap ETFsEvery fund in this category, with a comparison page for every pair.Open the category →VBR comparison pages 5
Guides for similar funds
More U.S. fund guides
Calculators for VBR investors
Other ETF categories
Guides and research
Common questions about VBR.
What is VBR?
VBR tracks the Morningstar US Small Cap Value Index and holds about 820 value style small U.S. companies. It is managed by Vanguard, trades on NYSE Arca in U.S. dollars and launched on Jan 26, 2004.
What is the expense ratio of VBR?
The expense ratio of VBR on the issuer page is 0.05%, or about $5 a year per $10,000 invested.
What is the VBR dividend yield?
The issuer page showed a SEC yield of 1.98% on Oct 31, 2026 for VBR. Yields change, so check the issuer page for the current figure.
How often does VBR pay a dividend?
VBR pays distributions in Mar, Jun, Sep, Dec. The latest payment in the log was $1.0300 per share.
What does VBR hold?
VBR holds 820 positions. Its largest positions are Moderna, Jabil, Williams-Sonoma.
Can I hold VBR in a Roth IRA or 401(k)?
Yes for IRAs. VBR is an ordinary exchange traded fund, so most brokerages let you hold it in a Roth IRA or a traditional IRA. Whether it is available in a 401(k) depends on the funds your plan offers.
How has VBR performed?
The issuer period returns are shown in the returns section. Returns include fees, and past performance does not guarantee future results.
VBR or IJR, what is the difference?
The two funds do a similar job and differ in cost, issuer and holdings. VBR has an expense ratio of 0.05% and IJR has an expense ratio of 0.06%. Open the IJR vs VBR comparison for holdings overlap, yield and returns side by side.
How is VBR taxed in a taxable account?
Dividends are reported on Form 1099-DIV. Qualified dividends are taxed at long term rates and the rest as ordinary income. The split changes by year, so use the figures your broker reports.
Source, Vanguard fund page. All figures are dated as shown. This guide is for education and is not personal advice or an offer to sell.