VBK vs. PRFZ

Last updated Jul 22, 2026

VBK (Vanguard Small-Cap Growth ETF) and PRFZ (Invesco FTSE RAFI US 1500 Small-Mid ETF) are both exchange-traded funds - VBK is a Small Cap Growth Equities fund tracking the CRSP US Small Cap Growth Index, while PRFZ is a Small Cap Blend Equities fund tracking the FTSE RAFI US 1500 Small-Mid Index. Both are passively managed. Over the past 10 years, VBK returned 11.08%/yr vs 11.70%/yr for PRFZ. Their correlation of 0.93 suggests significant overlap in exposure. VBK charges 0.05%/yr vs 0.39%/yr for PRFZ.

Performance

VBK vs. PRFZ - Performance Comparison

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

Returns By Period

In the year-to-date period, VBK achieves a 15.49% return, which is significantly lower than PRFZ's 19.43% return. Over the past 10 years, VBK has underperformed PRFZ with an annualized return of 11.08%, while PRFZ has yielded a comparatively higher 11.70% annualized return.

VBK

• 1D: 1.50%
• 1M: -2.25%
• 6M: 8.68%
• YTD: 15.49%
• 1Y: 24.51%
• 3Y*: 14.50%
• 5Y*: 4.81%
• 10Y*: 11.08%
• ALL TIME*: 9.87%

PRFZ

• 1D: 1.26%
• 1M: 2.57%
• 6M: 13.47%
• YTD: 19.43%
• 1Y: 31.60%
• 3Y*: 16.34%
• 5Y*: 10.13%
• 10Y*: 11.70%
• ALL TIME*: 10.13%

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

VBK vs. PRFZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBK Vanguard Small-Cap Growth ETF	15.49%	8.50%	16.50%	21.45%	-28.44%	5.66%	35.44%	32.75%	-5.70%	21.87%
PRFZ Invesco FTSE RAFI US 1500 Small-Mid ETF	19.43%	11.26%	12.68%	20.21%	-16.29%	28.26%	11.84%	21.91%	-11.43%	13.82%

Correlation

The correlation between VBK and PRFZ is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Sep 20, 2006	0.93

The correlation between VBK and PRFZ has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.

VBK vs. PRFZ - Sectors Allocation Comparison

Sectors	VBK	PRFZ
Technology	27.1%	19.5%
Industrials	23.4%	16.1%
Healthcare	17.9%	17.8%
Consumer Cyclical	8.9%	11.2%
Financial Services	5.7%	13.6%
Real Estate	3.7%	6.9%
Communication Services	3.6%	2.9%
Energy	3.4%	4.4%
Basic Materials	3.1%	3.2%
Consumer Defensive	2.0%	3.0%
Utilities	1.1%	1.3%

Return for Risk

VBK vs. PRFZ — Risk / Return Rank

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

VBK

VBK Risk / Return Rank: 51
VBK Sharpe Ratio Rank: 47
VBK Sortino Ratio Rank: 46
VBK Omega Ratio Rank: 43
VBK Calmar Ratio Rank: 58
VBK Martin Ratio Rank: 60

PRFZ

PRFZ Risk / Return Rank: 74
PRFZ Sharpe Ratio Rank: 73
PRFZ Sortino Ratio Rank: 75
PRFZ Omega Ratio Rank: 67
PRFZ Calmar Ratio Rank: 79
PRFZ Martin Ratio Rank: 77

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.

VBK vs. PRFZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap Growth ETF (VBK) 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.

	VBK	PRFZ	Difference
Sharpe ratio: Return per unit of total volatility	1.22	1.75	-0.53
Sortino ratio: Return per unit of downside risk	1.76	2.55	-0.79
Omega ratio: Gain probability vs. loss probability	1.21	1.30	-0.09
Calmar ratio: Return relative to maximum drawdown	2.15	3.06	-0.91
Martin ratio: Return relative to average drawdown	7.71	10.42	-2.70

VBK vs. PRFZ - Sharpe Ratio Comparison

The current VBK Sharpe Ratio is 1.22, which is lower than the PRFZ Sharpe Ratio of 1.75. The chart below compares the historical Sharpe Ratios of VBK 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

VBK vs. PRFZ - Drawdown Comparison

The maximum VBK drawdown since its inception was -58.68%, smaller than the maximum PRFZ drawdown of -62.41%. Use the drawdown chart below to compare losses from any high point for VBK and PRFZ.

Drawdown Indicators

	VBK	PRFZ	Difference
Max Drawdown Largest peak-to-trough decline	-58.68%	-62.41%	+3.73%
Max Drawdown (1Y) Largest decline over 1 year	-11.44%	-10.38%	-1.06%
Max Drawdown (3Y) Largest decline over 3 years	-27.54%	-26.54%	-1.00%
Max Drawdown (5Y) Largest decline over 5 years	-38.39%	-26.58%	-11.81%
Max Drawdown (10Y) Largest decline over 10 years	-38.70%	-44.28%	+5.58%
Current Drawdown Current decline from peak	-4.80%	-2.13%	-2.67%
Average Drawdown Average peak-to-trough decline	-10.11%	-9.37%	-0.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.19%	3.04%	+0.15%

Volatility

VBK vs. PRFZ - Volatility Comparison

Vanguard Small-Cap Growth ETF (VBK) has a higher volatility of 4.87% compared to Invesco FTSE RAFI US 1500 Small-Mid ETF (PRFZ) at 3.74%. This indicates that VBK's price experiences larger fluctuations and is considered to be riskier than PRFZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBK	PRFZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.87%	3.74%	+1.13%
Volatility (6M) Calculated over the trailing 6-month period	15.76%	13.05%	+2.71%
Volatility (1Y) Calculated over the trailing 1-year period	20.19%	18.09%	+2.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.63%	21.24%	+2.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.89%	22.38%	+0.51%

VBK vs. PRFZ - Expense Ratio Comparison

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

Dividends

VBK vs. PRFZ - Dividend Comparison

VBK's dividend yield for the trailing twelve months is around 0.44%, less than PRFZ's 0.79% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PRFZ Invesco FTSE RAFI US 1500 Small-Mid ETF	0.79%	0.82%	1.45%	1.42%	1.33%	0.93%	0.91%	1.29%	1.37%	0.97%	1.31%	1.39%
VBK Vanguard Small-Cap Growth ETF	0.44%	0.54%	0.54%	0.68%	0.55%	0.36%	0.44%	0.57%	0.79%	0.82%	1.08%	0.98%

Frequently Asked Questions

Can I hold both VBK and PRFZ in my portfolio?

With a correlation of 0.91, VBK 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, VBK or PRFZ?

VBK has higher volatility (4.87%) compared to PRFZ (3.74%). In terms of maximum drawdown, VBK dropped -58.68% vs PRFZ's -62.41%.

Which ETF is better, VBK or PRFZ?

On 10-year performance, PRFZ leads with 11.70% vs 11.08% for VBK. On fees, VBK is cheaper at 0.05% per year. On volatility, PRFZ has been the lower-risk option at 3.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VBK or PRFZ?

Over the 10-year period, PRFZ has performed better with a 11.70% return vs 11.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VBK or PRFZ?

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

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

PRFZ has the higher dividend yield at 0.79%, compared with 0.44% for VBK.

What is the main difference between VBK and PRFZ?

VBK is categorized as Small Cap Growth Equities, while PRFZ is Small Cap Blend Equities. VBK tracks CRSP US Small Cap Growth 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 VBK and 0.39% for PRFZ.

Which has better risk-adjusted returns?

PRFZ currently has the higher Sharpe Ratio (1.75 vs 1.22), 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.