VTWO vs VBR ETF comparison
VTWO vs VBR
VTWO holds about 2,000 of the smallest U.S. public companies, and VBR holds U.S. small companies that look cheap on valuation measures. The two funds follow different indexes. The Russell 2000 Index ranks companies by size and takes the 2,000 smallest of the Russell 3000, with no profit test.
The Morningstar US Small Cap Value Index keeps only the small companies that look cheap on valuation measures. VTWO charges 0.06% and VBR charges 0.05%. This page lines up what each fund holds, how much they overlap, what each paid and how each performed, with the date next to every number.
VTWO vs VBR, the short answer
VTWO and VBR differ in what they hold and what they charge. The two funds follow different indexes. The Russell 2000 Index ranks companies by size and takes the 2,000 smallest of the Russell 3000, with no profit test. The Morningstar US Small Cap Value Index keeps only the small companies that look cheap on valuation measures.
Expense ratios are 0.06% and 0.05%. Market price total returns, annualized (both to Nov 9, 2026): 1 year 18.28% vs 22.37%; 3 years 20.62% vs 19.54%; 5 years 4.67% vs 8.29%; 10 years 9.28% vs 9.76%. Neither is better for everyone; the choice turns on cost, which markets you want, and what you already own.
VTWO vs VBR overlap, if you own both
VTWO · ten largest holdings
As of Sep 30, 2026- 1Twist Bioscience TWST0.42%Only here
- 2Moog MOG.A0.36%Only here
- 3JFrog FROG0.35%Only here
- 410x Genomics TXG0.35%Only here
- 5UMB Financial UMBF0.32%Only here
- 6BrightSpring Health Services BTSG0.31%Only here
- 7Glaukos GKOS0.31%Only here
- 8Viasat VSAT0.30%Only here
- 9Cytokinetics CYTK0.29%Only here
- 10Hut 8 HUT0.29%Only here
Ten largest total 3.3%
VBR · ten largest holdings
As of Sep 30, 2026- 1Moderna MRNA0.79%Only here
- 2Jabil JBL0.68%Only here
- 3Williams-Sonoma WSM0.61%Only here
- 4Atmos Energy ATO0.60%Only here
- 5F5 FFIV0.57%Only here
- 6Smurfit Westrock SW0.53%Only here
- 7Tapestry TPR0.52%Only here
- 8Tenet Healthcare THC0.47%Only here
- 9Viatris VTRS0.46%Only here
- 10Omnicom Group OMC0.46%Only here
Ten largest total 5.7%
Shared by both · 0 companies
| Company | VTWO weight | VBR weight | Gap |
|---|
Only in VTWO’s top ten: Twist Bioscience, Moog, JFrog, 10x Genomics, UMB Financial, BrightSpring Health Services, Glaukos, Viasat, Cytokinetics, Hut 8. Only in VBR’s top ten: Moderna, Jabil, Williams-Sonoma, Atmos Energy, F5, Smurfit Westrock, Tapestry, Tenet Healthcare, Viatris, Omnicom Group.
The twist
25.1% of the weight sits in stocks both funds hold (matched by ticker in the full holdings files dated Sep 30, 2026), and 0 stocks appear in both top-ten lists. The funds overlap only partly, so owning both is a real choice about how much of each market you want.
VTWO vs VBR, one goal, which fund?
VTWO vs VBR, where the money goes
VTWO · Vanguard, Sep 30, 2026
VBR · Vanguard, Sep 30, 2026
VTWO vs VBR returns compared across calendar years
Calendar-year market price total returns (distributions reinvested), computed from daily adjusted closing prices to Dec 31 of each year. Both funds use the same days, so the years compare like for like. Source: StockAnalysis price history, Nov 9, 2026.
VTWO vs VBR, what each fund costs a year
The data room
Every figure behind the VTWO vs VBR cards above, with its source, date and evidence grade. Open the issuer documents before relying on any number.
VTWO vs VBR key facts
Evidence grade: Issuer issuer page · Mixed issuer plus provider · 3rd party| Metric | VTWO | VBR | Grade and source |
|---|
Portfolio characteristics
| Metric | VTWO | VBR | Grade and source |
|---|
Net assets are for the ETF share class on different dates (VTWO $16.31B; VBR $36.91B), so they are not matched. Figures that were not available are left out rather than estimated.
VTWO vs VBR holdings and top ten
Click a tile · VTWO: Vanguard, Sep 30, 2026 · VBR: Vanguard, Sep 30, 2026Tile area is proportional to weight.
| # | Holding | Weight |
|---|
| # | Holding | Weight |
|---|
Top ten sums: VTWO 3.3% · VBR 5.7%. 0 shared top-ten stocks. Weights change.
VTWO vs VBR sector exposure
VTWO: Sep 30, 2026 · VBR: Sep 30, 2026The sector mirror
Same funds, different lenses
Company size
Both hold small U.S. companies, and some also hold mid-size names. VTWO holds 2,000 stocks and VBR holds 820.
What you actually own
VTWO vs VBR performance
Matched dates, both to Nov 9, 2026; issuer NAV rows dated separatelyThe first rows are market price total returns computed on the same dates for both funds (to Nov 9, 2026), so they compare like for like. The 10-year figure runs from the Dec 30, 2016 close (9.9 years). The issuer NAV rows are dated separately (VTWO to Oct 31, 2026, VBR to Oct 31, 2026) and include the since-inception figures. “Since inception” starts in different years (VTWO 2010, VBR 2004). Past performance does not guarantee future results.
Growth of a hypothetical $10,000 · Market price total return, both to Nov 9, 2026
Both funds derived from annualized market price total returns on matched dates (compounded). Distributions reinvested; fund expenses are already in the price. Illustration, not a forecast.
VTWO vs VBR yield, dividends and dividend growth
Latest eight payouts each| VTWO ex-date | Payable | $ / share | VBR ex-date | Payable | $ / share |
|---|
Paid per share, last 12 months vs the 12 months before
Payouts are listed by ex-dividend date. Small cap funds pay low, uneven dividends, so the like-for-like comparison is the total paid over the last 12 months against the 12 months before (cards above: VTWO $1.357 per share, VBR $4.420 per share). Dividend yields here are 1% to 2%, so most of the return comes from price change. See yield vs total return.
| Measure | VTWO | VBR |
|---|---|---|
| 30-day SEC yield | 1.20% (Oct 31, 2026) | 1.98% (Oct 31, 2026) |
| Trailing 12-month | 1.19% (Nov 9) | 1.78% (Nov 9) |
| Paid, last 12 months | $1.357 per share | $4.420 per share |
| Frequency | Quarterly | Quarterly |
Per-share payouts differ because share prices differ, so compare yields rather than dollars. Small cap funds pay low dividends and the amounts change from quarter to quarter, so a single quarter says little. Payouts shown: VTWO 8, VBR 8. See what is dividend yield and yield vs total return.
VTWO vs VBR concentration and overlap
Ten largest positions · shared holdingsRank by rank, the ten largest positions of each fund. Top five: VTWO 1.8%, VBR 3.2%. Top ten: VTWO 3.3%, VBR 5.7%.
VTWO vs VBR trading and liquidity
Issuer and fund pages · Nov 6 to Nov 9, 2026Large funds like these usually trade with small spreads, but check the live spread before you trade. A spread of 0.01% is about $10 between the buy and sell price on $100,000. Small company shares can trade less actively than large ones, so spreads can widen on volatile days. Use limit orders for large trades and avoid the first and last minutes of the session. See creation, redemption and trading for how NAV, premiums and spreads arise.
VTWO vs VBR expense ratio and fees in dollars
As stated by each issuer| Balance | VTWO (0.06%) | VBR (0.05%) | Gap per year |
|---|---|---|---|
| $10,000 | $6 | $5 | $1 |
| $50,000 | $30 | $25 | $5 |
| $100,000 | $60 | $50 | $10 |
Expense ratio is taken from fund assets, not billed. It excludes the bid/ask spread, any premium or discount to NAV, brokerage commissions, and taxes.
VTWO vs VBR, how each fund picks its stocks
Index approach, in plain languageVTWO · Russell 2000 Index
VTWO tracks the Russell 2000 Index. VTWO holds about 2,000 stocks and was launched in 2010; the ten largest positions total 3.3%. Index rules and rebalance dates are in the fund’s prospectus.
VBR · Morningstar US Small Cap Value Index
VBR tracks the Morningstar US Small Cap Value Index. VBR holds about 820 stocks and was launched in 2004; the ten largest positions total 5.7%. Index rules and rebalance dates are in the fund’s prospectus.
Exact eligibility rules, caps and rebalance dates sit in each prospectus and index methodology; read them before relying on this summary.
VTWO vs VBR, why yield and returns differ
Sector mix explains much of the gapThe two funds follow different indexes. The Russell 2000 Index ranks companies by size and takes the 2,000 smallest of the Russell 3000, with no profit test. The Morningstar US Small Cap Value Index keeps only the small companies that look cheap on valuation measures.
VTWO follows the Russell 2000 Index and VBR follows the Morningstar US Small Cap Value Index. Because each index sets its own rules, the funds hold different numbers of stocks (2,000 against 820) and different mixes of sectors such as health care, financials and industrials. Over any window the results can diverge in either direction, and the gap comes mostly from what each index holds and when it rebalances, not from fees.
How to decide between VTWO and VBR
A step-by-step frameworkStart with what separates them: The two funds follow different indexes. The Russell 2000 Index ranks companies by size and takes the 2,000 smallest of the Russell 3000, with no profit test. The Morningstar US Small Cap Value Index keeps only the small companies that look cheap on valuation measures. Then check what you already own: the funds overlap by 25.1%, so holding both is a real decision about how much of each market you want.
- Step 1 · Market: VTWO holds about 2,000 of the smallest U.S. public companies; VBR holds U.S. small companies that look cheap on valuation measures.
- Step 2 · Cost: VTWO 0.06% vs VBR 0.05%.
- Step 3 · Concentration: ten largest positions 3.3% vs 5.7%.
- Step 4 · Overlap: use the Diversification Calculator against what you own.
Size the position against your whole portfolio, including any U.S. stock fund you hold.
VTWO vs VBR for Canadian investors
Currency, withholding tax and account typeVTWO and VBR are U.S.-listed and trade in U.S. dollars, so buying them from a Canadian account usually involves converting Canadian dollars, which adds a cost on both entry and exit. Because the funds hold U.S. companies, a move in the U.S. dollar also changes your return in Canadian dollars.
U.S. dividends paid to Canadian residents are generally subject to U.S. withholding tax under the tax treaty; the treaty exemption usually applies inside an RRSP, while a TFSA is not exempt. Rules depend on the fund and the account, so confirm them with a tax professional. This is general education, not tax advice.
Risks of VTWO and VBR
What can go wrongShared risks
- Both hold smaller companies, which usually swing more than large companies and can fall sharply in a downturn.
- Many small companies have thinner finances and less diversified businesses than large ones, so setbacks can hit harder.
- Trading in small company shares can be thin, so spreads can widen in a sell-off.
- Both hold U.S. stocks only, so neither adds foreign or bond diversification.
Fund-specific risks
- VTWO: ten largest positions total 3.3% (Sep 30, 2026); 2,000 holdings.
- VBR: ten largest positions total 5.7% (Sep 30, 2026); 820 holdings.
- Value funds: a value tilt can lag for long stretches when growth stocks lead the market.
- Both: exchange-traded structure; see each prospectus for legal form.
VTWO vs VBR taxes and account placement
General education, not tax adviceBoth funds invest in U.S. stocks. Their dividends can include qualified dividends, which may be taxed at lower rates in a taxable U.S. account when holding-period rules are met, and most of the long-run return comes from price gains that are taxed when you sell. Check each fund’s tax documents for details.
For Canadian account types and withholding tax, see the Canadian section above. Confirm the rules for your account with a tax professional, and read how to build an ETF portfolio.
Other ETFs people compare
For context, not recommendationsInvestors comparing VTWO and VBR often also look at the other small cap funds in this group: IWM, VTWO, IJR, VB, SCHA and VBR. See the other Small Cap ETFs comparisons and the ETF research hub.
VTWO vs VBR drawdown arithmetic
What a decline means in dollarsRecovery gain = decline ÷ (1 − decline). The scenarios use illustrative declines of 10%, 20% and 30% so you can see what a drop does to each fund. They are a rough guide to a bad year, not a worst-case figure. See the Position Size Calculator.
Tools to compare VTWO vs VBR
Static weights from this pageIgnores taxes, spreads and holdings differences. ETF Fee Calculator.
Check shared exposure with the Diversification Calculator.
VTWO vs VBR, which fits which job
Characteristics, not recommendationsVTWO may suit investors who want…
The widest rank-based small cap index, with no profit screen.
Strengths
- More holdings: 2,000 against 820
- Flatter top ten: 3.3% against 5.7%
- Pays distributions
- Exchange-traded and priced all day
Watch points
- Higher fee: 0.06% against 0.05%
- Led in only 1 of 4 return windows (both to Nov 9, 2026)
- Not a complete portfolio
- Small company price swings
VBR may suit investors who want…
Small companies that look cheap, a value tilt.
Strengths
- Lower fee: 0.05% against 0.06%
- Led in 3 of 4 return windows (both to Nov 9, 2026)
- Pays distributions
- Exchange-traded and priced all day
Watch points
- Fewer holdings: 820 against 2,000
- Heavier top ten: 5.7% against 3.3%
- Not a complete portfolio
- Small company price swings
VTWO vs VBR investor scenarios
Characteristics that fit, not recommendationsVTWO vs VBR key terms
Plain-language definitions
VTWO vs VBR, frequently asked questions
Answers use the figures and dates shown aboveIs VTWO or VBR better?
In the VTWO vs VBR question, neither is better for everyone. VTWO and VBR differ in what they hold and what they charge. The two funds follow different indexes. The Russell 2000 Index ranks companies by size and takes the 2,000 smallest of the Russell 3000, with no profit test. The Morningstar US Small Cap Value Index keeps only the small companies that look cheap on valuation measures.
Expense ratios are 0.06% and 0.05%. Market price total returns, annualized (both to Nov 9, 2026): 1 year 18.28% vs 22.37%; 3 years 20.62% vs 19.54%; 5 years 4.67% vs 8.29%; 10 years 9.28% vs 9.76%. Neither is better for everyone; the choice turns on cost, which markets you want, and what you already own.
VTWO vs VBR, what are the expense ratios?
VTWO charges 0.06% and VBR charges 0.05%, which is $6 and $5 a year per $10,000.
VTWO vs VBR, how much do the funds overlap?
About 25.1% of the weight is held by both funds, matched by ticker in full holdings files dated Sep 30, 2026. 0 stocks appear in both top-ten lists.
VTWO vs VBR, what does each ETF track?
VTWO tracks the Russell 2000 Index. VBR tracks the Morningstar US Small Cap Value Index.
VTWO vs VBR, what are the top holdings?
VTWO (Sep 30, 2026): Twist Bioscience 0.42%, Moog 0.36%, JFrog 0.35%, 10x Genomics 0.35%, UMB Financial 0.32%. VBR (Sep 30, 2026): Moderna 0.79%, Jabil 0.68%, Williams-Sonoma 0.61%, Atmos Energy 0.6%, F5 0.57%.
VTWO vs VBR, which has performed better?
Market price total returns, annualized (both to Nov 9, 2026): 1 year 18.28% vs 22.37%; 3 years 20.62% vs 19.54%; 5 years 4.67% vs 8.29%; 10 years 9.28% vs 9.76%. Returns depend on what each fund holds, and past performance does not guarantee future results.
VTWO vs VBR, can I own both?
On VTWO vs VBR, you can, but they overlap by about 25.1%. 0 top-ten stocks are shared. The funds overlap only partly, so owning both is a real choice about how much of each market you want.
VTWO vs VBR, how often do the funds pay dividends?
VTWO pays quarterly and VBR pays quarterly. Trailing yields are 1.20% and 1.98%; check each issuer page for the schedule.
VTWO vs VBR, are they suitable for Canadian investors?
On VTWO vs VBR, both are U.S.-listed and trade in U.S. dollars, so Canadians face currency conversion costs and U.S. withholding tax on dividends. Treatment differs across TFSA, RRSP and taxable accounts. This is general education, not tax advice.
VTWO vs VBR, how do the funds differ by sector?
VTWO (Sep 30, 2026): health care 20.0%, financials 18.5%, information technology 13.3%. VBR (Sep 30, 2026): industrials 19.2%, financials 17.9%, consumer discretionary 14.9%.
VTWO vs VBR documents and sources
Open the issuer documents before relying on any figureVTWO · Vanguard
VBR · Vanguard
Third-party sources
StockAnalysis VTWO · StockAnalysis VBR.
Methodology and limits
- VTWO figures come from Vanguard fund pages and VBR figures from Vanguard fund pages.
- Dates are shown beside each figure; the issuer documents are linked below.
- Holdings overlap is the sum of the smaller weight of each ticker held by both funds, using each issuer’s full holdings file: iShares and Schwab files are dated Nov 6, 2026 and Vanguard files Sep 30, 2026. Cash, futures and unmatched tickers are excluded and dates differ for some pairs, so treat it as an estimate.
- Vanguard figures come from vanguard.com, the Vanguard compare tool and the Sep 30, 2026 fact sheets; iShares figures from ishares.com including the holdings file; Schwab figures from schwabassetmanagement.com and its holdings file; market data (shares, beta, range) from StockAnalysis, dated Nov 9, 2026.
- Sector labels differ by provider; technology, telecommunications and basic materials were mapped to information technology, communication and materials. The VTWO sector table is calculated from its holdings using iShares Russell 2000 sector labels. Cross-provider gaps are approximate.
- Figures that were unavailable are left out, and nothing was filled from memory or from another fund.
- Growth of $10,000 is derived from annualized market price total returns on matched dates; dollar values are approximate.
- Returns are computed from daily adjusted closing prices (distributions reinvested) so both funds share the same dates (the 10-year figure runs from Dec 30, 2016, 9.9 years); issuer NAV returns, where captured, are shown beside them with their dates.
Educational research, not personalized investment, tax or legal advice, and not a recommendation to buy or sell any fund. Investing involves risk, including loss of principal. Past performance does not guarantee future results. Calculators are hypothetical illustrations. Fund data are provided as published by the sources named and may differ from current figures.