Vanguard Small-Cap ETF

VB

Market cap $73.8B

The stock market is shifting away from a few dozen tech and mega-cap winners into stocks that have been under-the-radar and left behind.

Not every exchange-traded fund (ETF) worth owning trades at a premium. Some of the most structurally sound funds sit quietly below the radar, offering low costs, reliable income, or sector exposure that the broader market has yet to reprice fully.

VB holds much greater assets under management and a slightly higher yield, while SCHA offers a marginally lower expense ratio. SCHA outperformed over the past year, but VB saw a smaller drawdown and higher five-year growth.

ISCB has delivered a higher 1-year return than VB but with slightly deeper drawdowns and a smaller asset base Both ETFs charge extremely low expense ratios and offer identical dividend yields ISCB holds more stocks and has a marginally higher weighting to Financial Services, while VB is more liquid and widely traded We're bullish on these 10 stocks ›

Both funds charge the same ultra-low expense ratio, but SPSM pays a slightly higher dividend yield. VB holds over twice as many stocks as SPSM, leading to broader small-cap exposure.

SCHA has delivered a higher one-year return but experienced a slightly deeper five-year drawdown than VB. Both ETFs keep expenses low, but VB edges out SCHA on cost and assets under management.

Vanguard Small-Cap Index Fund ETF (VB) offers broad, low-cost exposure to U.S. small-cap equities, passively tracking the CRSP US Small Cap Index. Current financial conditions and manufacturing PMI indicators are favorable, supporting a tactical buy rating for VB, with suggested allocation capped at 5%. VB's sector exposure is cyclical, led by industrials (22%), technology (13.9%), and financials (13.7%), making it sensitive to the business cycle.

The Vanguard Small-Cap Index Fund is off to a strong start in 2026, outperforming large-cap peers constituting the S&P 500.

VB holds over twice as many stocks as SPSM and tracks a broader small-cap universe. VB delivered stronger total returns over the past year, but SPSM is more affordable for cost-conscious investors.

Vanguard Small-Cap ETF edges out iShares Core SP Small-Cap ETF on one-year and five-year total returns VB holds more than twice as many stocks, with a modest tilt toward industrials and technology Both funds remain highly diversified and inexpensive, with near-identical yields and risk profiles CEO says this is worth 18 Nvidias. Will this make the world's first trillionaire?