VB vs. PRFZ

Last updated Jun 14, 2026

VB (Vanguard Small-Cap ETF) and PRFZ (Invesco FTSE RAFI US 1500 Small-Mid ETF) are both Small Cap Blend Equities funds - VB tracks the CRSP US Small Cap Index while PRFZ tracks the FTSE RAFI US 1500 Small-Mid Index. Both are passively managed. Over the past 10 years, VB returned 11.61%/yr vs 11.95%/yr for PRFZ. With a 0.97 correlation, they move nearly in lockstep. VB charges 0.05%/yr vs 0.39%/yr for PRFZ.

Performance

VB vs. PRFZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Small-Cap ETF (VB) and Invesco FTSE RAFI US 1500 Small-Mid ETF (PRFZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with VB having a 15.33% return and PRFZ slightly higher at 15.55%. Both investments have delivered pretty close results over the past 10 years, with VB having a 11.61% annualized return and PRFZ not far ahead at 11.95%.

VB

• 1D: 0.70%
• 1M: 5.17%
• YTD: 15.33%
• 6M: 13.69%
• 1Y: 30.83%
• 3Y*: 16.14%
• 5Y*: 6.98%
• 10Y*: 11.61%

PRFZ

• 1D: 0.87%
• 1M: 6.43%
• YTD: 15.55%
• 6M: 12.59%
• 1Y: 35.58%
• 3Y*: 16.84%
• 5Y*: 8.16%
• 10Y*: 11.95%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VB vs. PRFZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VB Vanguard Small-Cap ETF	15.33%	8.87%	14.17%	18.22%	-17.51%	17.57%	19.19%	27.34%	-9.34%	16.26%
PRFZ Invesco FTSE RAFI US 1500 Small-Mid ETF	15.55%	11.26%	12.68%	20.21%	-16.29%	28.26%	11.84%	21.91%	-11.43%	13.82%

Correlation

The correlation between VB and PRFZ is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Sep 20, 2006	0.97

The correlation between VB and PRFZ has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

VB vs. PRFZ - Sectors Allocation Comparison

Sectors	VB	PRFZ
Industrials	20.8%	16.6%
Technology	17.2%	19.6%
Financial Services	12.6%	13.2%
Consumer Cyclical	11.3%	10.8%
Healthcare	11.1%	16.8%
Real Estate	7.6%	7.2%
Basic Materials	4.8%	3.5%
Energy	4.7%	5.0%
Consumer Defensive	3.4%	2.8%
Utilities	3.3%	1.5%
Communication Services	3.1%	2.9%

Return for Risk

VB vs. PRFZ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VB

VB Risk / Return Rank: 64
VB Sharpe Ratio Rank: 59
VB Sortino Ratio Rank: 60
VB Omega Ratio Rank: 55
VB Calmar Ratio Rank: 73
VB Martin Ratio Rank: 73

PRFZ

PRFZ Risk / Return Rank: 65
PRFZ Sharpe Ratio Rank: 62
PRFZ Sortino Ratio Rank: 63
PRFZ Omega Ratio Rank: 57
PRFZ Calmar Ratio Rank: 72
PRFZ Martin Ratio Rank: 68

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VB vs. PRFZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap ETF (VB) and Invesco FTSE RAFI US 1500 Small-Mid ETF (PRFZ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VB	PRFZ	Difference
Sharpe ratio: Return per unit of total volatility	1.73	1.81	-0.08
Sortino ratio: Return per unit of downside risk	2.47	2.58	-0.11
Omega ratio: Gain probability vs. loss probability	1.30	1.31	-0.01
Calmar ratio: Return relative to maximum drawdown	3.21	3.20	+0.02
Martin ratio: Return relative to average drawdown	11.80	11.02	+0.78

VB vs. PRFZ - Sharpe Ratio Comparison

The current VB Sharpe Ratio is 1.73, which is comparable to the PRFZ Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of VB and PRFZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VB vs. PRFZ - Drawdown Comparison

The maximum VB drawdown since its inception was -59.56%, roughly equal to the maximum PRFZ drawdown of -62.41%. Use the drawdown chart below to compare losses from any high point for VB and PRFZ.

Drawdown Indicators

	VB	PRFZ	Difference
Max Drawdown Largest peak-to-trough decline	-59.56%	-62.41%	+2.85%
Max Drawdown (1Y) Largest decline over 1 year	-8.98%	-10.38%	+1.40%
Max Drawdown (3Y) Largest decline over 3 years	-25.36%	-26.54%	+1.18%
Max Drawdown (5Y) Largest decline over 5 years	-28.15%	-26.58%	-1.57%
Max Drawdown (10Y) Largest decline over 10 years	-42.05%	-44.28%	+2.23%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-8.43%	-9.41%	+0.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.44%	3.01%	-0.57%

Volatility

VB vs. PRFZ - Volatility Comparison

The current volatility for Vanguard Small-Cap ETF (VB) is 5.41%, while Invesco FTSE RAFI US 1500 Small-Mid ETF (PRFZ) has a volatility of 5.92%. This indicates that VB experiences smaller price fluctuations and is considered to be less risky than PRFZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VB	PRFZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.41%	5.92%	-0.51%
Volatility (6M) Calculated over the trailing 6-month period	12.24%	12.93%	-0.69%
Volatility (1Y) Calculated over the trailing 1-year period	16.68%	18.33%	-1.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.80%	21.38%	-0.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.44%	22.46%	-1.02%

VB vs. PRFZ - Expense Ratio Comparison

VB has a 0.05% expense ratio, which is lower than PRFZ's 0.39% expense ratio.

Dividends

VB vs. PRFZ - Dividend Comparison

VB's dividend yield for the trailing twelve months is around 1.18%, more than PRFZ's 0.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PRFZ Invesco FTSE RAFI US 1500 Small-Mid ETF	0.82%	0.82%	1.45%	1.42%	1.33%	0.93%	0.91%	1.29%	1.37%	0.97%	1.31%	1.39%
VB Vanguard Small-Cap ETF	1.18%	1.33%	1.30%	1.55%	1.59%	1.24%	1.14%	1.39%	1.67%	1.35%	1.50%	1.48%

Frequently Asked Questions

Can I hold both VB and PRFZ in my portfolio?

With a correlation of 0.96, VB and PRFZ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VB or PRFZ?

PRFZ has higher volatility (5.92%) compared to VB (5.41%). In terms of maximum drawdown, VB dropped -59.56% vs PRFZ's -62.41%.

Which ETF is better, VB or PRFZ?

On 10-year performance, PRFZ leads with 11.95% vs 11.61% for VB. On fees, VB is cheaper at 0.05% per year. On volatility, VB has been the lower-risk option at 5.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VB or PRFZ?

Over the 10-year period, PRFZ has performed better with a 11.95% return vs 11.61%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VB or PRFZ?

VB is cheaper with a 0.05% expense ratio, compared with 0.39% for PRFZ.

Which ETF pays a higher dividend yield, VB or PRFZ?

VB has the higher dividend yield at 1.18%, compared with 0.82% for PRFZ.

What is the main difference between VB and PRFZ?

VB tracks CRSP US Small Cap Index, while PRFZ tracks FTSE RAFI US 1500 Small-Mid Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.05% for VB and 0.39% for PRFZ.

Which has better risk-adjusted returns?

PRFZ currently has the higher Sharpe Ratio (1.81 vs 1.73), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.