DLS vs. VSS

Last updated Jun 23, 2026

DLS (WisdomTree International SmallCap Dividend) and VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) are both Foreign Small & Mid Cap Equities funds - DLS tracks the WisdomTree International SmallCap Dividend Index while VSS tracks the FTSE Global Small Cap ex US Index. Both are passively managed. Over the past 10 years, DLS returned 8.34%/yr vs 8.76%/yr for VSS. Their correlation of 0.93 suggests significant overlap in exposure. DLS charges 0.58%/yr vs 0.07%/yr for VSS.

Performance

DLS vs. VSS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree International SmallCap Dividend (DLS) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DLS achieves a 6.66% return, which is significantly lower than VSS's 10.76% return. Over the past 10 years, DLS has underperformed VSS with an annualized return of 8.34%, while VSS has yielded a comparatively higher 8.76% annualized return.

DLS

• 1D: -0.01%
• 1M: -0.67%
• YTD: 6.66%
• 6M: 7.69%
• 1Y: 22.64%
• 3Y*: 17.89%
• 5Y*: 7.27%
• 10Y*: 8.34%

VSS

• 1D: 0.22%
• 1M: -0.37%
• YTD: 10.76%
• 6M: 11.06%
• 1Y: 26.93%
• 3Y*: 17.08%
• 5Y*: 6.23%
• 10Y*: 8.76%

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

DLS vs. VSS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DLS WisdomTree International SmallCap Dividend	6.66%	34.11%	3.06%	15.33%	-17.31%	11.71%	-1.28%	22.20%	-18.95%	31.83%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	10.76%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%

Correlation

The correlation between DLS and VSS is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Apr 6, 2009	0.93

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

DLS vs. VSS - Sectors Allocation Comparison

Sectors	DLS	VSS
Industrials	27.8%	18.7%
Financial Services	13.4%	10.1%
Consumer Cyclical	12.7%	9.1%
Basic Materials	9.2%	12.2%
Technology	8.9%	14.5%
Consumer Defensive	7.6%	3.5%
Real Estate	7.6%	7.1%
Communication Services	4.3%	2.3%
Healthcare	3.6%	6.0%
Energy	2.7%	4.4%
Utilities	2.0%	2.5%

Return for Risk

DLS vs. VSS — Risk / Return Rank

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

DLS

DLS Risk / Return Rank: 47
DLS Sharpe Ratio Rank: 49
DLS Sortino Ratio Rank: 50
DLS Omega Ratio Rank: 49
DLS Calmar Ratio Rank: 43
DLS Martin Ratio Rank: 46

VSS

VSS Risk / Return Rank: 51
VSS Sharpe Ratio Rank: 53
VSS Sortino Ratio Rank: 50
VSS Omega Ratio Rank: 53
VSS Calmar Ratio Rank: 48
VSS Martin Ratio Rank: 52

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.

DLS vs. VSS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree International SmallCap Dividend (DLS) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). 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.

	DLS	VSS	Difference
Sharpe ratio: Return per unit of total volatility	1.65	1.74	-0.09
Sortino ratio: Return per unit of downside risk	2.37	2.38	-0.01
Omega ratio: Gain probability vs. loss probability	1.30	1.32	-0.02
Calmar ratio: Return relative to maximum drawdown	2.06	2.33	-0.27
Martin ratio: Return relative to average drawdown	7.37	8.70	-1.33

DLS vs. VSS - Sharpe Ratio Comparison

The current DLS Sharpe Ratio is 1.65, which is comparable to the VSS Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of DLS and VSS, 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

DLS vs. VSS - Drawdown Comparison

The maximum DLS drawdown since its inception was -63.13%, which is greater than VSS's maximum drawdown of -43.51%. Use the drawdown chart below to compare losses from any high point for DLS and VSS.

Drawdown Indicators

	DLS	VSS	Difference
Max Drawdown Largest peak-to-trough decline	-63.13%	-43.51%	-19.62%
Max Drawdown (1Y) Largest decline over 1 year	-11.04%	-11.62%	+0.58%
Max Drawdown (3Y) Largest decline over 3 years	-12.69%	-15.73%	+3.04%
Max Drawdown (5Y) Largest decline over 5 years	-32.22%	-33.93%	+1.71%
Max Drawdown (10Y) Largest decline over 10 years	-44.77%	-43.51%	-1.26%
Current Drawdown Current decline from peak	-3.18%	-2.41%	-0.77%
Average Drawdown Average peak-to-trough decline	-13.62%	-9.62%	-4.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.08%	3.10%	-0.02%

Volatility

DLS vs. VSS - Volatility Comparison

The current volatility for WisdomTree International SmallCap Dividend (DLS) is 4.38%, while Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a volatility of 5.97%. This indicates that DLS experiences smaller price fluctuations and is considered to be less risky than VSS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DLS	VSS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.38%	5.97%	-1.59%
Volatility (6M) Calculated over the trailing 6-month period	11.49%	13.61%	-2.12%
Volatility (1Y) Calculated over the trailing 1-year period	13.78%	15.59%	-1.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.62%	16.59%	-0.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.65%	17.28%	-0.63%

DLS vs. VSS - Expense Ratio Comparison

DLS has a 0.58% expense ratio, which is higher than VSS's 0.07% expense ratio.

Dividends

DLS vs. VSS - Dividend Comparison

DLS's dividend yield for the trailing twelve months is around 3.50%, more than VSS's 3.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DLS WisdomTree International SmallCap Dividend	3.50%	3.87%	4.56%	4.29%	4.96%	3.29%	2.50%	3.37%	3.66%	2.79%	3.29%	2.72%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.15%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Frequently Asked Questions

Can I hold both DLS and VSS in my portfolio?

DLS and VSS have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DLS or VSS?

VSS has higher volatility (5.97%) compared to DLS (4.38%). In terms of maximum drawdown, DLS dropped -63.13% vs VSS's -43.51%.

Which ETF is better, DLS or VSS?

On 10-year performance, VSS leads with 8.76% vs 8.34% for DLS. On fees, VSS is cheaper at 0.07% per year. On volatility, DLS has been the lower-risk option at 4.38%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DLS or VSS?

Over the 10-year period, VSS has performed better with a 8.76% return vs 8.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DLS or VSS?

VSS is cheaper with a 0.07% expense ratio, compared with 0.58% for DLS.

Which ETF pays a higher dividend yield, DLS or VSS?

DLS has the higher dividend yield at 3.50%, compared with 3.15% for VSS.

What is the main difference between DLS and VSS?

DLS tracks WisdomTree International SmallCap Dividend Index, while VSS tracks FTSE Global Small Cap ex US Index. They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.58% for DLS and 0.07% for VSS.

Which has better risk-adjusted returns?

VSS currently has the higher Sharpe Ratio (1.74 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.