ETF Evaluator:
Vanguard Morn Small Cap ETF (VB)
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(as of Aug 19)
Best Performing in Small Blend Over the Last Year
| 55.4% | Invesco NASDAQ Future Gen 200 ETF (QQQS) |
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| 43.8% | Fidelity Enhanced Small Cap Core ETF (FESM) |
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ETF Details
Vanguard Morn Small Cap ETF Overview
Vanguard Morn Small Cap ETF (VB) is a passively managed U.S. Equity Small Blend exchange-traded fund (ETF). Vanguard launched the ETF in 2004.
The investment seeks to track the performance of the CRSP U.S. Small Cap Index that measures the investment return of small-capitalization stocks.
The fund advisor employs an indexing investment approach designed to track the performance of the CRSP U.S. Small Cap Index, a broadly diversified index of stocks of small U.S. companies. The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.
About Vanguard Morn Small Cap ETF (VB)
There are 2 members of the management team with an average tenure of 2.44 years: Aaron Choi (2025) and Kenny Narzikul (2023). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: DJ US Total Stock Market TR USD index with a weighting of 100% and Morningstar US Small TR USD index with a weighting of 100%. Vanguard Morn Small Cap ETF has 1317 securities in its portfolio. The top 10 holdings constitute 4.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Vanguard Morn Small Cap ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Vanguard Morn Small Cap ETF has 1.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.8% There is 1.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Vanguard Morn Small Cap ETF has 1.6% of the portfolio in cash.
Assets Under Management
The fund has $79 billion in total assets, which is above the $4 billion average for the Small Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
VB Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard Morn Small Cap ETF expense ratio is low compared to funds in the Small Blend category. Vanguard Morn Small Cap ETF has an expense ratio of 0.03%, which is 93% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard Morn Small Cap ETF has a portfolio turnover rate of 17%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 50% for the Small Blend category.
Recently, in the month of July 2026, Vanguard Morn Small Cap ETF returned -2.6%, which earned it a grade of C, as the Small Blend category had an average return of -2.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Vanguard Morn Small Cap ETF has a trailing yield of 1.22%, which is above the 1.17% category average.
The fund normally distributes its income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Vanguard Morn Small Cap ETF Grades
Year to date, the ETF has returned 15.2%, 2.8 percentage points worse than the category, which translates into a grade of D. The fund has returned 23.8% over the past year (grade of D), 13.9% over the past three years (grade of C) and 7.4% per year over the past five years (grade of C) and 10.9% per year over the past 10 years (grade of C).
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VB Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| VB Return (NAV) | -2.6% | 4.1% | 23.8% | 13.9% | 7.4% | 10.9% |
| VB Return (Price) | -2.6% | 4.1% | 23.8% | 13.9% | 7.4% | 10.9% |
| NAV +/- Price Return | 0.051% | -0.036% | 0.006% | -0.011% | -0.013% | -0.007% |
| Small Blend Avg | -2.1% | 5.7% | 28.5% | 14.0% | 8.0% | 10.8% |
| VB Grade (NAV) | C | F | D | C | C | C |
| +/- Category (NAV) | -0.5% | -1.6% | -4.6% | -0.1% | -0.6% | 0.1% |
| VB Tax-Cost Ratio | na | na | 0.4% | 0.4% | 0.5% | 0.5% |
VB Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VB Return (NAV) | 15.2% | 8.8% | 14.2% | 18.2% | -17.6% | 17.7% | 19.1% | 27.4% | -9.3% | 16.2% | 18.3% |
| VB Return (Price) | 15.2% | 8.9% | 14.2% | 18.2% | -17.5% | 17.6% | 19.2% | 27.3% | -9.3% | 16.3% | 18.4% |
| NAV +/- Price Ret | 0.001% | 0.005% | -0.004% | 0.002% | -0.003% | -0.009% | 0.005% | -0.2% | 0.2% | 0.1% | 0.7% |
| Small Blend Avg | 18.0% | 8.7% | 11.7% | 16.3% | -15.9% | 24.0% | 12.7% | 24.8% | -9.2% | 14.4% | 19.6% |
| VB Grade (NAV) | D | C | A | B | D | F | B | B | C | A | D |
| +/- Category | -2.8% | 0.1% | 2.5% | 1.9% | -1.7% | -6.3% | 6.4% | 2.5% | -0.1% | 1.9% | -1.3% |
| Risk Measures | |
| Beta: | 1.10 |
| R-Squared: | 69% |
| Standard Deviation: | 17.3% |
| Category Risk Index: | 0.95 |
| Category Risk Rating: | Below Average |
| Total Risk Index: | 1.41 |
| Total Risk Rating: | Above Average |
| Portfolio Characteristics | |
| Yield: | 1.2% |
| Total Assets: | $ 186,437 Mil |
| Share Class Assets: | $ 79,726 Mil |
| Turnover: | 17.0% |
| Expense Ratio: | 0.03% |
| Index Fund: | Yes |
| Index Tracked: | DJ US Total Stock Market TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Quarterly |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 3.4 years | |||
| Average Tenure: 2.4 years | |||
| Managers (Year): Narzikul Kenny (2023), Choi Aaron (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 1317 |
| % in Top 10 Holdings: | 4.3% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 1.6% |
Portfolio Allocation |
|
| Domestic Stock: | 96.8% |
| Foreign Stock: | 1.6% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.6% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Vanguard |
| Phone Number: | 866-499-8473 |
| Website: | www.vanguard.com |
| Inception Date: | January 26, 2004 |
Expenses and Fees
| Expense Ratio (%): | 0.03% (Rating: Low) |
| Category Average Expense Ratio (%): | 0.42% |
