VBR vs. IVLU

Last updated Jun 9, 2026

VBR (Vanguard Small-Cap Value ETF) and IVLU (iShares MSCI Intl Value Factor ETF) are both exchange-traded funds - VBR is a Small Cap Value Equities fund tracking the CRSP US Small Cap Value Index, while IVLU is a Foreign Large Cap Equities fund tracking the MSCI World ex USA Enhanced Value. Both are passively managed. Over the past 10 years, VBR returned 10.50%/yr vs 11.09%/yr for IVLU. A 0.69 correlation means they provide meaningful diversification when combined. VBR charges 0.05%/yr vs 0.30%/yr for IVLU.

Performance

VBR vs. IVLU - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with VBR having a 11.45% return and IVLU slightly lower at 10.99%. Over the past 10 years, VBR has underperformed IVLU with an annualized return of 10.50%, while IVLU has yielded a comparatively higher 11.09% annualized return.

VBR

• 1D: 0.16%
• 1M: 0.48%
• YTD: 11.45%
• 6M: 12.14%
• 1Y: 24.85%
• 3Y*: 15.60%
• 5Y*: 7.78%
• 10Y*: 10.50%

IVLU

• 1D: 0.45%
• 1M: 0.05%
• YTD: 10.99%
• 6M: 14.55%
• 1Y: 32.63%
• 3Y*: 23.34%
• 5Y*: 13.74%
• 10Y*: 11.09%

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

VBR vs. IVLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBR Vanguard Small-Cap Value ETF	11.45%	9.09%	12.40%	16.00%	-9.38%	28.08%	5.90%	22.78%	-12.28%	11.81%
IVLU iShares MSCI Intl Value Factor ETF	10.99%	46.09%	6.76%	20.07%	-5.73%	15.60%	-4.50%	15.60%	-15.10%	23.10%

Correlation

The correlation between VBR and IVLU is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.71
Correlation (All Time) Calculated using the full available price history since Jul 16, 2015	0.69

The correlation between VBR and IVLU has been stable across timeframes, ranging from 0.67 to 0.72 - a consistent structural relationship.

VBR vs. IVLU - Sectors Allocation Comparison

Sectors	VBR	IVLU
Industrials	18.1%	17.2%
Financial Services	17.6%	25.3%
Consumer Cyclical	12.4%	7.4%
Technology	10.6%	11.3%
Real Estate	10.1%	1.5%
Healthcare	7.9%	9.7%
Basic Materials	6.3%	7.5%
Energy	5.2%	5.1%
Utilities	4.8%	3.3%
Consumer Defensive	4.0%	6.3%
Communication Services	2.5%	4.0%

Return for Risk

VBR vs. IVLU — Risk / Return Rank

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

VBR

VBR Risk / Return Rank: 57
VBR Sharpe Ratio Rank: 53
VBR Sortino Ratio Rank: 56
VBR Omega Ratio Rank: 51
VBR Calmar Ratio Rank: 62
VBR Martin Ratio Rank: 61

IVLU

IVLU Risk / Return Rank: 69
IVLU Sharpe Ratio Rank: 73
IVLU Sortino Ratio Rank: 72
IVLU Omega Ratio Rank: 72
IVLU Calmar Ratio Rank: 62
IVLU Martin Ratio Rank: 64

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. IVLU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap Value ETF (VBR) and iShares MSCI Intl Value Factor ETF (IVLU). 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.

	VBR	IVLU	Difference
Sharpe ratio: Return per unit of total volatility	1.65	2.14	-0.49
Sortino ratio: Return per unit of downside risk	2.43	2.92	-0.49
Omega ratio: Gain probability vs. loss probability	1.29	1.38	-0.10
Calmar ratio: Return relative to maximum drawdown	2.82	2.80	+0.02
Martin ratio: Return relative to average drawdown	9.94	10.66	-0.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VBR vs. IVLU - Sharpe Ratio Comparison

The current VBR Sharpe Ratio is 1.65, which is comparable to the IVLU Sharpe Ratio of 2.14. The chart below compares the historical Sharpe Ratios of VBR and IVLU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VBR	IVLU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.65	2.14	-0.49
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.40	0.84	-0.44
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.63	-0.15
Sharpe Ratio (All Time) Calculated using the full available price history	0.42	0.47	-0.05

Drawdowns

VBR vs. IVLU - Drawdown Comparison

The maximum VBR drawdown since its inception was -61.98%, which is greater than IVLU's maximum drawdown of -41.85%. Use the drawdown chart below to compare losses from any high point for VBR and IVLU.

Drawdown Indicators

	VBR	IVLU	Difference
Max Drawdown Largest peak-to-trough decline	-61.98%	-41.85%	-20.13%
Max Drawdown (1Y) Largest decline over 1 year	-8.85%	-11.69%	+2.84%
Max Drawdown (3Y) Largest decline over 3 years	-24.19%	-15.48%	-8.71%
Max Drawdown (5Y) Largest decline over 5 years	-24.19%	-26.04%	+1.85%
Max Drawdown (10Y) Largest decline over 10 years	-45.28%	-41.85%	-3.43%
Current Drawdown Current decline from peak	-0.95%	-2.27%	+1.32%
Average Drawdown Average peak-to-trough decline	-8.26%	-8.59%	+0.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.51%	3.07%	-0.56%

Volatility

VBR vs. IVLU - Volatility Comparison

The current volatility for Vanguard Small-Cap Value ETF (VBR) is 3.67%, while iShares MSCI Intl Value Factor ETF (IVLU) has a volatility of 4.47%. This indicates that VBR experiences smaller price fluctuations and is considered to be less risky than IVLU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBR	IVLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.67%	4.47%	-0.80%
Volatility (6M) Calculated over the trailing 6-month period	10.49%	12.48%	-1.99%
Volatility (1Y) Calculated over the trailing 1-year period	15.16%	15.33%	-0.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.77%	16.52%	+3.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.74%	17.67%	+4.07%

VBR vs. IVLU - Expense Ratio Comparison

VBR has a 0.05% expense ratio, which is lower than IVLU's 0.30% expense ratio.

Dividends

VBR vs. IVLU - Dividend Comparison

VBR's dividend yield for the trailing twelve months is around 1.76%, less than IVLU's 3.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IVLU iShares MSCI Intl Value Factor ETF	3.34%	3.71%	4.46%	4.69%	3.59%	3.47%	2.05%	3.53%	2.82%	2.87%	2.53%	0.93%
VBR Vanguard Small-Cap Value ETF	1.76%	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 IVLU in my portfolio?

VBR and IVLU have a correlation of 0.67, 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 IVLU?

IVLU has higher volatility (4.47%) compared to VBR (3.67%). In terms of maximum drawdown, VBR dropped -61.98% vs IVLU's -41.85%.

Which ETF is better, VBR or IVLU?

On 10-year performance, IVLU leads with 11.09% vs 10.50% for VBR. On fees, VBR is cheaper at 0.05% per year. On volatility, VBR has been the lower-risk option at 3.67%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VBR or IVLU?

Over the 10-year period, IVLU has performed better with a 11.09% return vs 10.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VBR or IVLU?

VBR is cheaper with a 0.05% expense ratio, compared with 0.30% for IVLU.

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

IVLU has the higher dividend yield at 3.34%, compared with 1.76% for VBR.

What is the main difference between VBR and IVLU?

VBR is categorized as Small Cap Value Equities, while IVLU is Foreign Large Cap Equities. VBR tracks CRSP US Small Cap Value Index, while IVLU tracks MSCI World ex USA Enhanced Value. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.05% for VBR and 0.30% for IVLU.

Which has better risk-adjusted returns?

IVLU currently has the higher Sharpe Ratio (2.14 vs 1.65), 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.