VB — Vanguard Small-Cap ETF
Vanguard · Expense Ratio: 0.05% · US Small/Mid Cap · 7bp below the US Small/Mid Cap category average of 0.12%
Key Facts
| Ticker | VB |
| Full Name | Vanguard Small-Cap ETF |
| Provider | Vanguard |
| Expense Ratio | 0.05% |
| Category | US Small/Mid Cap |
| Assets Under Management | $60B |
| Inception Year | 2004 (22 years ago) |
| Number of Holdings | 1,400 |
| Dividend Yield | ~1.3% (low) |
| Top Holdings | SMCI, DECK, CSL |
What Is VB?
VB, managed by Vanguard, launched in 2004, is a major ETF with deep liquidity and tight bid-ask spreads in the US Small/Mid Cap category. US small-cap and mid-cap stock ETF covering smaller US companies with higher growth potential. With $60B in assets under management, it benefits from deep institutional liquidity and tight bid-ask spreads.
VB in a FIRE Portfolio
This fund serves as a satellite position — adding targeted exposure to us small/mid cap within a FIRE portfolio built around a broad-market core.
Satellite holdings typically make up 5-20% of your portfolio. Small-cap stocks have historically outperformed large-caps over long periods — a 10-20% tilt can boost long-term returns for FIRE investors with 30+ year horizons.
Cost Analysis: How VB's 0.05% Fee Affects Your FIRE Timeline
At 0.05%, VB is very cost-effective. Annual fees on a $100K investment: $50. Over 30 years, the fee drag shaves approximately 0.3% off your total returns. For a $1M FIRE portfolio, that's about $5,000 in cumulative fees — noticeable but reasonable for most investors.
Dividend Income Potential
With a low dividend yield of approximately 1.3%, here's what VB could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $1,300/year | $108/month |
| $250,000 | $3,250/year | $271/month |
| $500,000 | $6,500/year | $542/month |
| $1,000,000 | $13,000/year | $1,083/month |
Frequently Asked Questions About VB
What is the expense ratio for VB?
VB has an expense ratio of 0.05%. This is very cost-effective — on a $100K portfolio, annual fees are $50. 7bp below the us small/mid cap category average of 0.12%.
Is VB good for a FIRE portfolio?
This fund serves as a satellite position — adding targeted exposure to us small/mid cap within a FIRE portfolio built around a broad-market core. Its 0.05% expense ratio is very cost-effective for the US Small/Mid Cap category.
How does the 0.05% fee affect long-term returns?
At 0.05%, you'll pay $50/year per $100K invested. Over 30 years, fees reduce total returns by approximately 0.3%. Use the embedded calculator below to model the exact impact on your specific portfolio.
Similar ETFs in US Small/Mid Cap
- IJR — iShares Core S&P Small-Cap ETF (0.06% · Satellite Position)
- IWM — iShares Russell 2000 ETF (0.19% · Satellite Position)
- AVUV — Avantis US Small Cap Value ETF (0.25% · Satellite Position)
- VIOV — Vanguard S&P Small-Cap 600 Value ETF (0.15% · Satellite Position)
- SLYV — SPDR S&P 600 Small Cap Value ETF (0.15% · Satellite Position)
- SCHA — Schwab US Small-Cap ETF (0.04% · Satellite Position)
- SPSM — SPDR Portfolio S&P 600 Small Cap ETF (0.05% · Satellite Position)
- IWO — iShares Russell 2000 Growth ETF (0.24% · Satellite Position)
- VTWO — Vanguard Russell 2000 ETF (0.1% · Satellite Position)