VB: Vanguard Small-Cap ETF returns, drawdowns and risk
Funds on smaller US companies, historically more volatile than the large caps.
Data updated October 2026
VB · US exchange · USDCategory: US small and mid cap ETFsData from June 2020
From June 2020 to October 2026 VB returned 12.7% a year on average with dividends reinvested, in US dollars: $10,000 invested at the start grew to $21,454.
Its deepest fall was 28.2%, from November 2021 to June 2022, and it took about 32 months to get back to the previous high. Annual volatility was 20.6%; at the last close it was 7.8% below its high.
Against SPY (SPDR S&P 500 ETF Trust), over the 76 months both have data, the correlation of monthly returns was 0.86: they usually moved together. Beta was 1.04. In months when SPY rose, VB moved 93% as much on average; in months when SPY fell, 108% as much.
Key figures
- Annual return (CAGR)
- +12.7%
- 1-year return
- +13.8%
- 5 years, a year
- +6.1%
- 10 years, a year
- —
- Annual volatility
- 20.6%
- Maximum drawdown
- −28.2%
- Sharpe ratio
- 0.55
- Worst year
- 2022: −17.5%
Trailing returns
| Period | VB | SPY |
|---|---|---|
| 1 year | +13.8% | +16.6% |
| 3 years, a year | +17.6% | +23.1% |
| 5 years, a year | +6.1% | +12.7% |
To the last close of October 2026. Periods longer than a year are annualised.
Growth of $10,000: VB vs SPY
Month-end values from July 2020, the first month both funds have data.
VB drawdowns
Percentage below the previous high, weekly.
Returns by calendar year
| Year | VB | SPY |
|---|---|---|
| 2026(partial) | +11.3% | +13.3% |
| 2025 | +8.9% | +17.7% |
| 2024 | +14.2% | +24.9% |
| 2023 | +18.2% | +26.2% |
| 2022 | −17.5% | −18.2% |
| 2021 | +17.6% | +28.7% |
| 2020(partial) | +35.2% | — |
VB compared
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
Sharpe ratio uses the return of short-term government bills in the same currency as the risk-free rate. The growth chart uses month-end values; drawdowns and volatility use daily closes.
Questions
What is the average annual return of VB?
From June 2020 to October 2026 VB returned 12.7% a year on average (CAGR) with dividends reinvested, in USD. Over the last 5 years: +6.1% a year. Over the last 12 months: +13.8%.
What was the worst drawdown of VB?
28.2%, from November 2021 to June 2022; it took about 32 months from the previous high to get back to it.
How volatile is VB?
Annual volatility was 20.6% over the period. Its worst month was −9.6% and 61% of months were positive. Worst calendar year: 2022 (−17.5%).
How closely does VB follow SPY?
Over 76 months the correlation of monthly returns was 0.86, so they usually moved together, with a beta of 1.04.
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Other US small and mid cap ETFs
- All US small and mid cap ETFsReturns and risk side by side
- IWM — iShares Russell 2000 ETFCAGR +8.0%
- IJR — iShares Core S&P Small-Cap ETFCAGR +8.6%
- IJH — iShares Core S&P Mid-Cap ETFCAGR +8.4%
- MDY — SPDR S&P MidCap 400 ETF TrustCAGR +9.3%
- VO — Vanguard Mid-Cap ETFCAGR +11.5%
- SCHA — Schwab U.S. Small-Cap ETFCAGR +10.8%
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.