# How Vanguard Morningstar Small-Cap Growth ETF (VBK) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/vbk
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VBK alone. It places VBK (Vanguard Morningstar Small-Cap Growth ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VBK stands in the market, and of the alternatives worth a closer look.

Period covered: VBK's full trading record, from January 2004 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **What you're buying:** A correlation of 0.97 with VB (Vanguard Morningstar Small-Cap ETF) over 5 years: effectively the same bet as the larger fund.
- **Right now:** Over the past 6 months, VBK fell 1.5% while the S&P 500 rose 9.1%. On the flip side, VBK has bounced back 25.4% from its April 2025 low after a 27.5% loss from December 2024 to April 2025 after falling while the S&P 500 fell 17.8%.
- **Fund or market?:** VBK fell 3.0% over the past 3 months, 3.8 points ahead of the US small-cap equity ETF IWO (iShares Russell 2000 Growth ETF), which fell 6.7%. The S&P 500 rose 3.9%. Its similar funds did not move as one over the past 3 months: OUSM (ALPS O'Shares U.S. Small-Cap Quality Dividend ETF) rose 0.8%, while VTWO (Vanguard Russell 2000 ETF) fell 5.4%.
- **Long term:** VBK turned $10,000 into $27,700 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** Across six sell-offs, VBK has typically fallen 1.4 times as far as the S&P 500.
- **Diversification:** VBK is more of the same, not a cushion: a correlation of 0.88 with the S&P 500 over 5 years and 0.92 with the total US market, more closely than 80% of ETFs with at least $100 million in assets.
- **Better options**
  - **Popular alternatives:** VUG (Vanguard Morningstar Growth ETF), IWM (iShares Russell 2000 ETF) and OUSM (ALPS O'Shares U.S. Small-Cap Quality Dividend ETF) earned more than VBK with less volatility over the past 5 years. VUG returned 12.3% a year at 22.5% volatility, against 3.2% a year at 23.7%.
  - **Nearby categories and themes:** OEF (iShares S&P 100 ETF, US large-cap equity) and DBEF (Xtrackers MSCI EAFE Hedged Equity ETF, international equity) earned more than VBK with less volatility over the past 5 years. OEF returned 14.3% a year at 17.8% volatility, against 3.2% a year at 23.7%.
  - **Versus the S&P 500:** Simply owning the S&P 500 would have done better over the past 5 years: 12.7% a year at 17.1% volatility, against 3.2% at 23.7% for VBK.

## How much would $10,000 in VBK have grown?

This chart tracks a hypothetical $10,000 investment in VBK over the past 21 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VBK over the same span and VBK's popular alternatives, among those that traded for the entire period.

- $10,000 invested in VBK at the end of September 2005 would have grown to $67,914 by September 2026, less than the $90,973 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of VBK, and PSI finished highest, at $312,428.

## VBK at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- VBK's deepest decline since it began trading in 2004 was 58.7%, from October 2007 to March 2009. It took 21 months from the low to climb back to its old high.
- Over 21 full calendar years, VBK's best was 2009, when it returned 42.8%, and its worst was 2008, when it lost 40.3%. It lost money in five of those years.
- VBK is 9.1% below its all-time high.

- Type: ETF, Broad Market (Asset Management)
- Trading since: January 30, 2004
- Assets: $43B
- Expense ratio: 0.05%
- Volatility (5 years): 23.7%; Sharpe ratio: 0.25
- Worst decline ever: −58.7%, from October 10, 2007 to March 9, 2009; back at its high by December 7, 2010

| Period | VBK total return |
| --- | --- |
| 1 month | −2.6% |
| 3 months | −3.0% |
| 6 months | −1.5% |
| year to date | +8.7% |
| 1 year | +9.7% |
| 3 years | +66.3% |
| 5 years | +17.3% |
| 10 years | +177% |

## VBK against the whole market

Where VBK ranks among every stock and fund, and what across the market has done better.

### How does VBK rank among all ETFs?

This section ranks VBK on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- VBK is among the more volatile ETFs: its price swings rank in the bottom 14% of the 1,560 ETFs with at least $100 million in assets, where the top is the calmest.

| Measure | VBK | Rank |
| --- | --- | --- |
| 1-year return | +9.7% | 1,295 of 2,485 (top 53%) |
| 3-year return | +66.3% | 857 of 1,949 (top 44%) |
| 5-year return | +17.3% | 1,155 of 1,560 (top 75%) |
| 10-year return | +177% | 362 of 958 (top 38%) |
| Volatility, 5 years | 23.7% | 1,335 of 1,560 (top 86%) |
| Sharpe ratio, 5 years | 0.25 | 1,254 of 1,560 (top 81%) |
| Worst decline, past 10 years | −38.7% | 486 of 951 (top 52%) |

### What has beaten VBK on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 94 stocks and 593 ETFs worth at least $500 million sit in the green region: each earned more than VBK over the past 5 years with smaller price swings. That is 19% of the 3,633 screened.
- Among those with at least half VBK's swings, DXJ has the best return for its risk: 26.6% a year at 19.1% volatility, 20% less than VBK's 23.7%, and a Sharpe ratio (return above cash per unit of volatility) of 1.34 against 0.25 for VBK.
- Among VBK's popular alternatives, VUG, SMLF and OUSM are in the region. VUG earned 12.3% a year against 3.2% a year for VBK, at 22.5% volatility, 5% less than VBK's 23.7%.

### Is there a better investment than VBK?

The table below lists investments that beat VBK over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among VBK's popular alternatives, VUG, IWM and OUSM earned more than VBK with less volatility over the past 5 years. VUG returned 12.3% a year at 22.5% volatility, against 3.2% a year at 23.7%.
- Looking beyond its popular alternatives, OEF (US large-cap equity) and DBEF (international equity) earned more than VBK with less volatility over the past 5 years. OEF returned 14.3% a year at 17.8% volatility, against 3.2% a year at 23.7%.
- Simply owning the S&P 500 would have done better over the past 5 years: 12.7% a year at 17.1% volatility, against 3.2% at 23.7% for VBK.

The 15 strongest of 687 investments that beat VBK over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with VBK | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| VBK: Vanguard Morningstar Small-Cap Growth ETF (this page) |  | +3.2% | 23.7% | 0.25 | −38.7% | +177% |  |  |
| [BRK-B](https://easycompare.io/research/brk-b): Berkshire Hathaway Inc. | Insurance | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.40 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [JNJ](https://easycompare.io/research/jnj): Johnson & Johnson | Pharmaceuticals | +12.7% | 17.9% | 0.76 | −27.4% | +196% | 0.18 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [LIN](https://easycompare.io/research/lin): Linde plc | Chemicals | +11.5% | 20.9% | 0.63 | −32.6% | +394% | 0.51 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | US Dividend Equity | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.83 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [SCHD](https://easycompare.io/research/schd): Schwab U.S. Dividend Equity ETF | US Dividend Equity | +9.7% | 14.3% | 0.72 | −33.4% | +252% | 0.67 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [AEP](https://easycompare.io/research/aep): American Electric Power Company, Inc. | Electric Utilities | +12.4% | 20.2% | 0.68 | −32.9% | +185% | 0.38 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [XLV](https://easycompare.io/research/xlv): State Street Health Care Select Sector SPDR ETF | Health Care Equity | +8.4% | 15.3% | 0.60 | −28.4% | +202% | 0.52 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| ACWI: iShares MSCI ACWI ETF | Global Equity | +10.6% | 16.2% | 0.70 | −33.5% | +227% | 0.87 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| IUSG: iShares Core S&P U.S. Growth ETF | US Growth Equity | +12.9% | 21.2% | 0.68 | −32.4% | +405% | 0.83 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [WCN](https://easycompare.io/research/wcn): Waste Connections, Inc. | Environmental Services | +6.1% | 20.0% | 0.40 | −31.6% | +270% | 0.46 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| SPHQ: Invesco S&P 500 Quality ETF | US Quality Equity | +12.0% | 16.7% | 0.76 | −31.6% | +300% | 0.84 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [IWF](https://easycompare.io/research/iwf): iShares Russell 1000 Growth ETF | US Large-Cap Growth | +11.7% | 21.8% | 0.62 | −32.7% | +416% | 0.83 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| FTCS: First Trust Capital Strength ETF | US Quality Equity | +6.2% | 13.2% | 0.52 | −31.9% | +188% | 0.70 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| OEF: iShares S&P 100 ETF | US Large-Cap Equity | +14.3% | 17.8% | 0.84 | −31.4% | +367% | 0.82 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | International Equity | +13.1% | 13.8% | 0.96 | −32.5% | +206% | 0.74 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |

## VBK against its popular alternatives

The investments people most often weigh against VBK, compared period by period and year by year.

### How do VBK's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- 13 of the 19 popular alternatives, led by VUG, SMLF and FYC, were both more rewarding and calmer than VBK over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, VBK returned 3.2% a year, less than the S&P 500's 12.7%, with higher volatility (23.7% against 17.1%).

### Has VBK consistently beaten its popular alternatives?

This section compares VBK with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Ten of the 21 popular alternatives, led by SMLF, VUG and JSML, outperformed VBK in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- SMLF, VUG and JSML outperformed VBK in every long-term period and in all but one short-term period, the most consistent record in the group.
- VUG and VOT earned more for the risk they took than VBK (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of VBK | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| VBK: Vanguard Morningstar Small-Cap Growth ETF (this page) | +9.7% | +66.3% | +17.3% | +177% |  |  | 0.25 |
| SMLF: iShares U.S. Small-Cap Equity Factor ETF | +14.9% | +78.2% | +61.2% | +206% | 5/5 short-term, 3/3 long-term | all-weather | 0.56 |
| [VUG](https://easycompare.io/research/vug): Vanguard Morningstar Growth ETF | +10.2% | +100% | +78.6% | +419% | 4/5 short-term, 3/3 long-term | all-weather | 0.63 |
| JSML: Janus Henderson Small Cap Growth Alpha ETF | +14.2% | +82.7% | +34.2% | +218% | 4/5 short-term, 3/3 long-term | all-weather | 0.36 |
| PSI: Invesco Semiconductors ETF | +68.1% | +217% | +196% | +1,134% | 3/5 short-term, 3/3 long-term | consistent | 0.73 |
| FYC: First Trust Small Cap Growth AlphaDEX Fund | +19.6% | +116% | +56.5% | +263% | 3/5 short-term, 3/3 long-term | consistent | 0.50 |
| XBI: State Street SPDR S&P Biotech ETF | +39.7% | +130% | +25.1% | +159% | 4/5 short-term, 2/3 long-term | consistent | 0.30 |
| VOT: Vanguard Morningstar Mid-Cap Growth ETF | +0.1% | +58.0% | +19.6% | +201% | 3/5 short-term, 2/3 long-term | consistent | 0.27 |
| SCHA: Schwab U.S. Small-Cap ETF | +16.5% | +73.1% | +33.9% | +165% | 3/5 short-term, 2/3 long-term | consistent | 0.38 |
| VTWO: Vanguard Russell 2000 ETF | +12.5% | +72.1% | +30.1% | +161% | 3/5 short-term, 2/3 long-term | consistent | 0.35 |
| [IWM](https://easycompare.io/research/iwm): iShares Russell 2000 ETF | +12.3% | +71.3% | +29.0% | +158% | 3/5 short-term, 2/3 long-term | consistent | 0.34 |
| ISCG: iShares Morningstar Small-Cap Growth ETF | +10.5% | +70.2% | +24.0% | +180% | 2/5 short-term, 2/3 long-term |  | 0.30 |
| VTWG: Vanguard Russell 2000 Growth ETF | +6.2% | +69.7% | +19.3% | +161% | 0/5 short-term, 2/3 long-term |  | 0.27 |
| IWO: iShares Russell 2000 Growth ETF | +6.0% | +68.9% | +18.7% | +159% | 0/5 short-term, 2/3 long-term |  | 0.26 |
| [VB](https://easycompare.io/research/vb): Vanguard Morningstar Small-Cap ETF | +13.7% | +66.8% | +35.2% | +179% | 5/5 short-term, 1/3 long-term |  | 0.40 |
| [VBR](https://easycompare.io/research/vbr): Vanguard Morningstar Small-Cap Value ETF | +16.8% | +66.7% | +48.6% | +169% | 5/5 short-term, 1/3 long-term |  | 0.51 |
| OUSM: ALPS O'Shares U.S. Small-Cap Quality Dividend ETF | +10.9% | +49.6% | +45.7% | — | 5/5 short-term, 1/3 long-term |  | 0.55 |
| SLYG: State Street SPDR S&P 600 Small Cap Growth ETF | +14.4% | +58.9% | +27.1% | +169% | 4/5 short-term, 1/3 long-term |  | 0.33 |
| VIOG: Vanguard S&P Small-Cap 600 Growth ETF | +14.5% | +59.0% | +27.1% | +169% | 4/5 short-term, 1/3 long-term |  | 0.33 |
| IJT: iShares S&P Small-Cap 600 Growth ETF | +14.4% | +58.7% | +26.7% | +167% | 4/5 short-term, 1/3 long-term |  | 0.33 |
| SPSM: State Street SPDR Portfolio S&P 600 Small Cap ETF | +16.8% | +61.1% | +32.2% | +163% | 4/5 short-term, 1/3 long-term |  | 0.37 |
| DWAS: Invesco Dorsey Wright SmallCap Momentum ETF | +9.0% | +52.4% | +17.1% | +196% | 0/5 short-term, 1/3 long-term |  | 0.25 |

### How did VBK do year by year?

This table shows each investment's total return in every full calendar year since 2005, along with where VBK ranked among its popular alternatives each year.

- VBK finished ahead of the S&P 500 in eight of its 21 full calendar years, and behind it in each of the last five.
- Ranked against its popular alternatives each year, VBK finished in the top quarter in five of 21 years and in the bottom quarter in two. In 2025, it ranked 16 of 20.
- Among its popular alternatives, VUG came out ahead of VBK most often, in 13 of the 21 years both traded.

| Year | VBK | SPY |
| --- | --- | --- |
| 2025 | +8.5% | +17.7% |
| 2024 | +16.5% | +24.9% |
| 2023 | +21.4% | +26.2% |
| 2022 | −28.4% | −18.2% |
| 2021 | +5.7% | +28.7% |
| 2020 | +35.4% | +18.3% |
| 2019 | +32.7% | +31.2% |
| 2018 | −5.7% | −4.6% |
| 2017 | +21.9% | +21.7% |
| 2016 | +10.9% | +12.0% |

## Risk and diversification

How VBK has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were VBK's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all five of VBK's worst declines, the S&P 500 held up better over the same dates.
- The slowest recovery came after VBK fell 38.4% from November 2021 to June 2022; it did not regain that peak until November 2024, two years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −58.7% | October 10, 2007 | March 9, 2009 | December 7, 2010 | −55.1% | 2008 financial crisis |
| −38.7% | February 20, 2020 | March 18, 2020 | July 29, 2020 | −28.8% | Covid crash |
| −38.4% | November 8, 2021 | June 16, 2022 | November 25, 2024 | −21.3% | 2022 bear market |
| −28.9% | July 7, 2011 | October 3, 2011 | September 7, 2012 | −18.4% | 2011 euro debt crisis |
| −27.5% | December 4, 2024 | April 8, 2025 | September 18, 2025 | −17.8% |  |

### How did VBK do in stock market crashes?

This section measures how far VBK, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- VBK fell further than the S&P 500 in eight of the nine crashes it has traded through. The clearest case was the 2015 China and oil sell-off, when VBK fell 24.1% and the S&P 500 fell 12.8%.
- Among its popular alternatives, OUSM held up best, falling less than VBK in four of the five crashes they both traded through.

| Crash | Dates | VBK fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −58.7% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −2.7% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −27.7% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −24.1% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −6.0% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −25.2% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −38.7% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −32.8% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −6.1% | −3.4% |

### How closely does VBK move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- VUG took just 108% of the S&P 500's losses, against 125% for VBK, while still keeping 113% of its gains.
- Over the past 10 years, VBK captured 99% of the S&P 500's gains in rising months and 125% of its losses in falling months, with a beta of 1.17. Its share of the market's losses was larger than its share of the gains.
- Eight of the 18 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than VBK's 0.79, led by PSI, VUG and FYC.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| VBK: Vanguard Morningstar Small-Cap Growth ETF (this page) | 99.0% | 125% | 1.17 |
| SMLF: iShares U.S. Small-Cap Equity Factor ETF | 98.0% | 118% | 1.11 |
| [VUG](https://easycompare.io/research/vug): Vanguard Morningstar Growth ETF | 113% | 108% | 1.13 |
| JSML: Janus Henderson Small Cap Growth Alpha ETF | 111% | 141% | 1.30 |
| PSI: Invesco Semiconductors ETF | 150% | 110% | 1.54 |
| FYC: First Trust Small Cap Growth AlphaDEX Fund | 106% | 122% | 1.22 |
| XBI: State Street SPDR S&P Biotech ETF | 93.0% | 122% | 1.01 |
| VOT: Vanguard Morningstar Mid-Cap Growth ETF | 95.0% | 113% | 1.12 |
| SCHA: Schwab U.S. Small-Cap ETF | 97.0% | 124% | 1.18 |
| VTWO: Vanguard Russell 2000 ETF | 98.0% | 128% | 1.17 |
| [IWM](https://easycompare.io/research/iwm): iShares Russell 2000 ETF | 98.0% | 129% | 1.17 |
| ISCG: iShares Morningstar Small-Cap Growth ETF | 95.0% | 118% | 1.12 |
| VTWG: Vanguard Russell 2000 Growth ETF | 101% | 132% | 1.22 |
| IWO: iShares Russell 2000 Growth ETF | 100% | 132% | 1.21 |
| [VB](https://easycompare.io/research/vb): Vanguard Morningstar Small-Cap ETF | 96.0% | 120% | 1.13 |
| [VBR](https://easycompare.io/research/vbr): Vanguard Morningstar Small-Cap Value ETF | 94.0% | 119% | 1.11 |
| SLYG: State Street SPDR S&P 600 Small Cap Growth ETF | 93.0% | 119% | 1.11 |
| SPSM: State Street SPDR Portfolio S&P 600 Small Cap ETF | 95.0% | 123% | 1.13 |
| DWAS: Invesco Dorsey Wright SmallCap Momentum ETF | 99.0% | 120% | 1.18 |

### What diversifies VBK?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in VBK into GLD would have cut the portfolio's volatility by 16% over the past 5 years and raised its annual return (+4.4% for VBK alone, +7.6% for the mix).
- Among large ETFs, LVHI, DXJ and EWP have moved largely independently of VBK over the past 5 years, with correlations of 0.48 or lower, and each still earned a positive 5-year return.
- CAH made money in three of the five calendar years in which VBK lost money.

| Investment | Correlation with VBK | 5Y return | Volatility | Sharpe | Rose in VBK's 5 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.48 | +119% | 11.1% | 1.48 | 1 of 5 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.47 | +225% | 19.1% | 1.34 | 2 of 5 |
| EWP: iShares MSCI Spain ETF | 0.47 | +140% | 20.3% | 0.97 | 0 of 5 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.13 | +126% | 18.9% | 0.96 | 2 of 5 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.22 | +177% | 25.5% | 0.93 | 2 of 5 |
| AMLP: Alerian MLP ETF | 0.42 | +111% | 18.9% | 0.89 | 2 of 5 |
| IDV: iShares International Select Dividend ETF | 0.48 | +82.6% | 15.5% | 0.86 | 0 of 5 |
| EDIV: State Street SPDR S&P Emerging Markets Dividend ETF | 0.47 | +69.9% | 13.8% | 0.84 | 0 of 5 |

## Common questions

### What was VBK's worst drawdown?

VBK's deepest decline since it began trading in 2004 was 58.7%, from October 2007 to March 2009. It took 21 months from the low to climb back to its old high. Because VBK launched in January 2004, that record does not include the dot-com bust.

### What were VBK's best and worst years?

Over 21 full calendar years, VBK's best year was 2009, when it returned 42.8%. Its worst was 2008, with a return of -40.3%.

### Is there a better investment than VBK?

Among VBK's popular alternatives, VUG, IWM and OUSM earned more than VBK with less volatility over the past 5 years. VUG returned 12.3% a year at 22.5% volatility, against 3.2% a year at 23.7%. Looking beyond its popular alternatives, OEF (US large-cap equity) and DBEF (international equity) earned more than VBK with less volatility over the past 5 years. OEF returned 14.3% a year at 17.8% volatility, against 3.2% a year at 23.7%.

### Is VBK more volatile than the S&P 500?

Yes. VBK's volatility over the past 5 years was 23.7%, 1.4 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VBK's return lands within 23.7% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is VBK's Sharpe ratio?

VBK's Sharpe ratio over the past 5 years was 0.25, against 0.79 for the S&P 500, so VBK earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is VBK with the S&P 500?

Over the past 5 years, VBK's monthly returns had a correlation of 0.88 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They move almost in lockstep, so holding both adds little diversification. In the table, the correlation column measures each option against VBK instead: the lower it is, the more that option would diversify a VBK holding.

### What are the best alternatives to VBK?

Of the 21 popular alternatives we compared, ten outperformed VBK in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: SMLF, VUG and JSML.

### Did VBK outperform the S&P 500?

VBK finished ahead of the S&P 500 (SPY) in eight of 21 full calendar years. In 2025, it returned +8.5%, against +17.7% for the index.

### How did VBK do in stock market crashes?

VBK fell less than the S&P 500 (SPY) in none of the nine major crashes it has traded through, and further in eight. The clearest case was the 2015 China and oil sell-off, when VBK fell 24.1% and the S&P 500 fell 12.8%.

### What diversifies VBK?

These had a low correlation with VBK over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.48), DXJ (correlation 0.47) and EWP (correlation 0.47); among large stocks, CAH (correlation 0.32), CLS (correlation 0.49) and MCK (correlation 0.16). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/vbk
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against VBK live: https://betterthanspy.com/?b=VBK&utm_source=easycompare&utm_medium=research