VBR vs. IUSB

Last updated Jun 13, 2026

VBR (Vanguard Small-Cap Value ETF) and IUSB (iShares Core Universal USD Bond ETF) are both exchange-traded funds - VBR is a Small Cap Value Equities fund tracking the CRSP US Small Cap Value Index, while IUSB is a Intermediate Core-Plus Bond fund tracking the Bloomberg U.S. Universal Index. Both are passively managed. Over the past 10 years, VBR returned 10.99%/yr vs 1.97%/yr for IUSB. At a 0.04 correlation, their price movements are largely independent. VBR charges 0.05%/yr vs 0.06%/yr for IUSB.

Performance

VBR vs. IUSB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Small-Cap Value ETF (VBR) and iShares Core Universal USD Bond ETF (IUSB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBR achieves a 14.60% return, which is significantly higher than IUSB's 0.67% return. Over the past 10 years, VBR has outperformed IUSB with an annualized return of 10.99%, while IUSB has yielded a comparatively lower 1.97% annualized return.

VBR

• 1D: 0.87%
• 1M: 4.91%
• YTD: 14.60%
• 6M: 12.92%
• 1Y: 27.94%
• 3Y*: 16.09%
• 5Y*: 8.36%
• 10Y*: 10.99%

IUSB

• 1D: -0.07%
• 1M: 0.46%
• YTD: 0.67%
• 6M: 1.05%
• 1Y: 4.82%
• 3Y*: 4.70%
• 5Y*: 0.39%
• 10Y*: 1.97%

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

VBR vs. IUSB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBR Vanguard Small-Cap Value ETF	14.60%	9.09%	12.40%	16.00%	-9.38%	28.08%	5.90%	22.78%	-12.28%	11.81%
IUSB iShares Core Universal USD Bond ETF	0.67%	7.38%	2.11%	6.23%	-13.04%	-1.33%	7.62%	9.13%	-0.27%	3.82%

Correlation

The correlation between VBR and IUSB is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.21
Correlation (10Y) Calculated over the trailing 10-year period	0.06
Correlation (All Time) Calculated using the full available price history since Jun 12, 2014	0.04

Over the past year, VBR and IUSB have become more correlated (0.40) than their long-term average of 0.04, meaning their price movements have been converging.

VBR vs. IUSB - Sectors Allocation Comparison

Sectors	VBR	IUSB
Industrials	18.1%	-
Financial Services	17.6%	-
Consumer Cyclical	12.4%	-
Technology	10.6%	-
Real Estate	10.1%	-
Healthcare	7.9%	-
Basic Materials	6.3%	-
Energy	5.2%	100.0%
Utilities	4.8%	-
Consumer Defensive	4.0%	-
Communication Services	2.5%	-

Return for Risk

VBR vs. IUSB — Risk / Return Rank

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

VBR

VBR Risk / Return Rank: 67
VBR Sharpe Ratio Rank: 64
VBR Sortino Ratio Rank: 68
VBR Omega Ratio Rank: 59
VBR Calmar Ratio Rank: 72
VBR Martin Ratio Rank: 70

IUSB

IUSB Risk / Return Rank: 43
IUSB Sharpe Ratio Rank: 44
IUSB Sortino Ratio Rank: 45
IUSB Omega Ratio Rank: 42
IUSB Calmar Ratio Rank: 44
IUSB Martin Ratio Rank: 40

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.

VBR vs. IUSB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap Value ETF (VBR) and iShares Core Universal USD Bond ETF (IUSB). 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.

	VBR	IUSB	Difference
Sharpe ratio: Return per unit of total volatility	1.83	1.35	+0.47
Sortino ratio: Return per unit of downside risk	2.67	2.02	+0.65
Omega ratio: Gain probability vs. loss probability	1.31	1.24	+0.08
Calmar ratio: Return relative to maximum drawdown	3.17	1.92	+1.25
Martin ratio: Return relative to average drawdown	11.22	5.62	+5.60

VBR vs. IUSB - Sharpe Ratio Comparison

The current VBR Sharpe Ratio is 1.83, which is higher than the IUSB Sharpe Ratio of 1.35. The chart below compares the historical Sharpe Ratios of VBR and IUSB, 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

VBR vs. IUSB - Drawdown Comparison

The maximum VBR drawdown since its inception was -61.98%, which is greater than IUSB's maximum drawdown of -17.90%. Use the drawdown chart below to compare losses from any high point for VBR and IUSB.

Drawdown Indicators

	VBR	IUSB	Difference
Max Drawdown Largest peak-to-trough decline	-61.98%	-17.90%	-44.08%
Max Drawdown (1Y) Largest decline over 1 year	-8.85%	-2.53%	-6.32%
Max Drawdown (3Y) Largest decline over 3 years	-24.19%	-5.82%	-18.37%
Max Drawdown (5Y) Largest decline over 5 years	-24.19%	-17.87%	-6.32%
Max Drawdown (10Y) Largest decline over 10 years	-45.28%	-17.90%	-27.38%
Current Drawdown Current decline from peak	0.00%	-1.09%	+1.09%
Average Drawdown Average peak-to-trough decline	-8.26%	-3.58%	-4.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.50%	0.86%	+1.64%

Volatility

VBR vs. IUSB - Volatility Comparison

Vanguard Small-Cap Value ETF (VBR) has a higher volatility of 4.43% compared to iShares Core Universal USD Bond ETF (IUSB) at 1.30%. This indicates that VBR's price experiences larger fluctuations and is considered to be riskier than IUSB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBR	IUSB	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.43%	1.30%	+3.13%
Volatility (6M) Calculated over the trailing 6-month period	10.65%	2.69%	+7.96%
Volatility (1Y) Calculated over the trailing 1-year period	15.36%	3.59%	+11.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.79%	5.80%	+13.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.74%	5.04%	+16.70%

VBR vs. IUSB - Expense Ratio Comparison

VBR has a 0.05% expense ratio, which is lower than IUSB's 0.06% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VBR vs. IUSB - Dividend Comparison

VBR's dividend yield for the trailing twelve months is around 1.71%, less than IUSB's 4.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IUSB iShares Core Universal USD Bond ETF	4.22%	4.17%	4.04%	3.46%	2.53%	1.74%	2.68%	3.04%	2.98%	2.56%	2.60%	1.95%
VBR Vanguard Small-Cap Value ETF	1.71%	1.95%	1.98%	2.12%	2.03%	1.75%	1.68%	2.06%	2.35%	1.79%	1.77%	1.99%

Frequently Asked Questions

Can I hold both VBR and IUSB in my portfolio?

VBR and IUSB have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBR or IUSB?

VBR has higher volatility (4.43%) compared to IUSB (1.30%). In terms of maximum drawdown, VBR dropped -61.98% vs IUSB's -17.90%.

Which ETF is better, VBR or IUSB?

On 10-year performance, VBR leads with 10.99% vs 1.97% for IUSB. On fees, VBR is cheaper at 0.05% per year. On volatility, IUSB has been the lower-risk option at 1.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VBR or IUSB?

Over the 10-year period, VBR has performed better with a 10.99% return vs 1.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VBR or IUSB?

VBR is cheaper with a 0.05% expense ratio, compared with 0.06% for IUSB.

Which ETF pays a higher dividend yield, VBR or IUSB?

IUSB has the higher dividend yield at 4.22%, compared with 1.71% for VBR.

What is the main difference between VBR and IUSB?

VBR is categorized as Small Cap Value Equities, while IUSB is Intermediate Core-Plus Bond. VBR tracks CRSP US Small Cap Value Index, while IUSB tracks Bloomberg U.S. Universal Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.05% for VBR and 0.06% for IUSB.

Which has better risk-adjusted returns?

VBR currently has the higher Sharpe Ratio (1.83 vs 1.35), 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.