What Is VBK? Vanguard Morningstar Small-Cap Growth ETF
Last updated September 2026
Short answer
VBK is Vanguard Morningstar Small-Cap Growth ETF, an ETF that tracks the CRSP U.S. Small Cap Growth Index at a 0.05% expense ratio. VBK holds the growth half of the US small-cap market: roughly 600 smaller companies screened for rapid revenue and earnings expansion. It is the mirror image of VBR, and it is the more volatile of the two by some distance. Small companies that have not yet proven they can earn money consistently are exactly where equity risk concentrates, and the fund's 0.42% yield tells you how little of the return is expected to arrive as income.
VBK is issued by Vanguard and tracks the CRSP U.S. Small Cap Growth Index. It charges a 0.05% expense ratio, holds approximately $47.0B in assets under management, yields about 0.42%, and launched in 2004.
The most volatile corner of the market
Two risk factors stack here. Small companies carry more operating and financial leverage, less diversified revenue and thinner balance sheets. Growth companies derive more of their value from earnings expected years out, which makes them acutely sensitive to interest rates.
Put those together and you get a fund that can fall harder than almost anything else in a broad equity allocation, and recover faster. That is not a flaw. It is what the fund is for, and it is why position sizing matters more here than in a large-cap holding.
What is actually inside
The weighting is very flat, which is characteristic of small-cap indices: Credo Technology at 1.2%, Revolution Medicines at 1.0%, Astera Labs at 1.0%, Natera at 1.0%, Twilio at 0.9% and Casey's at 0.8%. No holding can move the fund alone.
The sector mix explains the behaviour better than the holdings do: technology at 27%, industrials at 23%, healthcare at 18% and consumer discretionary at 9%. That healthcare weight is worth pausing on, because in small-cap growth it means clinical-stage biotechnology, where individual outcomes are binary and a large share of companies are not profitable at all.
VBK against its value sibling
VBR and VBK split the same small-cap universe. VBR takes the cheap half, ends up heavy in financials and industrials, and yields about 1.78%. VBK takes the growth half, ends up heavy in technology and healthcare, and yields about 0.42%.
They tend to work at different times, which is the honest argument for holding the whole small-cap market through a single fund like VB instead. Choosing VBK specifically is a decision that small-cap growth in particular is where you want the risk.
VBK holdings: top 10
Approximate weights as of August 2026. Each ticker links to its individual stock guide in Walnut.
| Rank | Ticker | Company | % of VBK | |
|---|---|---|---|---|
| 1 | CRDO | Credo Technology Group Holding Ltd | 1.2% | |
| 2 | RVMD | Revolution Medicines Inc Ordinary Shares | 1.0% | |
| 3 | ALAB | Astera Labs Inc | 1.0% | |
| 4 | NTRA | Natera Inc | 1.0% | |
| 5 | TWLO | Twilio Inc Class A | 0.9% | |
| 6 | CASY | Casey's General Stores Inc | 0.8% | |
| 7 | CRS | Carpenter Technology Corp | 0.8% | |
| 8 | CW | Curtiss-Wright Corp | 0.8% | |
| 9 | FTAI | FTAI Aviation Ltd | 0.8% | |
| 10 | ENTG | Entegris Inc | 0.8% |
How do I invest in VBK?
There are three common ways to get VBK exposure. Buy shares (or fractional shares) of VBK directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so VBK sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. VBK trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is VBK a good buy?
Whether VBK is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks the CRSP U.S. Small Cap Growth Index, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is VBK a buy?
The bottom line on VBK
VBK gives you the CRSP U.S. Small Cap Growth Index exposure in one ticker at a 0.05% expense ratio. Most investors use it as a core holding and layer more concentrated thematic portfolios on top.
More on VBK
Whether VBK is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is VBK a buy?
VBK yields 0.42% as of August 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see VBK dividend: yield and schedule.
New to funds like VBK? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how VBK fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in VBK with AI
Connect the broker you already use and ask Walnut's AI how VBK fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is VBK?
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VBK is the Vanguard Small-Cap Growth ETF. It tracks the CRSP U.S. Small Cap Growth Index, roughly 600 smaller US companies screened for rapid revenue and earnings growth. It charges 0.05%, holds about $47.0B, and launched in 2004.
How risky is VBK compared with a large-cap fund?
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Considerably riskier. It stacks two risk factors: small companies with thinner balance sheets, and growth valuations that depend on distant future earnings and therefore react sharply to interest rates. Expect deeper drawdowns and faster recoveries than a large-cap fund.
What does VBK hold?
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About 600 small growth companies, weighted flat. Credo Technology is the largest at 1.2%, then Revolution Medicines at 1.0%, Astera Labs at 1.0%, Natera at 1.0% and Twilio at 0.9%. By sector: technology 27%, industrials 23%, healthcare 18%.
Why is healthcare 18% of a small-cap growth fund?
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Because in small-cap growth, healthcare largely means clinical-stage biotechnology. Those companies often have no revenue and binary outcomes tied to trial results. It is a meaningful source of the fund's volatility and worth understanding before buying.
VBK vs VBR: which half of small-cap?
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They split the same universe. VBR holds the cheap half, tilts to financials and industrials, and yields about 1.78%. VBK holds the growth half, tilts to technology and healthcare, and yields about 0.42%. They lead at different times, which is the argument for holding the whole small-cap market through a single fund instead.
Does VBK pay a dividend?
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Barely: about 0.42%. Small growth companies reinvest whatever they earn, and many are not consistently profitable. If income matters at all, this is the wrong fund.
How much VBK is sensible to hold?
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That is a personal allocation question rather than something a page can answer, but the relevant input is that this is among the most volatile broad equity funds available. Sizing it like a large-cap core holding would give you a materially different portfolio than you probably intend.
What would hurt VBK most?
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Rising interest rates and tightening credit, together. Higher rates compress the value of distant earnings, which is where growth valuations live, and tighter credit hits small companies that depend on external funding. Those conditions usually arrive at the same time.
What is VBK's expense ratio?
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VBK has an expense ratio of 0.05% per year as of August 2026, charged by Vanguard and deducted from the fund's value rather than billed to you separately. On a $10,000 position that is roughly $5 a year. Fees compound over time, so on a long-term holding the expense ratio is one of the few return drivers you control. It is worth comparing against other funds that track the CRSP U.S. Small Cap Growth Index before you choose.
How do I compare VBK to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. VBK's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to August 2026; verify current figures against Vanguard's fund page or your broker before investing.