HSCZ vs. VTI

Last updated Jun 14, 2026

HSCZ (iShares Currency Hedged MSCI EAFE Small Cap ETF) and VTI (Vanguard Total Stock Market ETF) are both exchange-traded funds - HSCZ is a Foreign Small & Mid Cap Equities fund tracking the MSCI EAFE Small-Cap 100% Hedged to USD Index, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. Both are passively managed. Over the past 10 years, HSCZ returned 12.35%/yr vs 15.02%/yr for VTI. A 0.71 correlation means they provide meaningful diversification when combined. HSCZ charges 0.43%/yr vs 0.03%/yr for VTI.

Performance

HSCZ vs. VTI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) and Vanguard Total Stock Market ETF (VTI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HSCZ achieves a 10.99% return, which is significantly higher than VTI's 9.62% return. Over the past 10 years, HSCZ has underperformed VTI with an annualized return of 12.35%, while VTI has yielded a comparatively higher 15.02% annualized return.

HSCZ

• 1D: 0.71%
• 1M: 0.48%
• YTD: 10.99%
• 6M: 13.18%
• 1Y: 29.11%
• 3Y*: 18.32%
• 5Y*: 10.94%
• 10Y*: 12.35%

VTI

• 1D: 0.57%
• 1M: -0.28%
• YTD: 9.62%
• 6M: 9.69%
• 1Y: 26.27%
• 3Y*: 20.60%
• 5Y*: 12.20%
• 10Y*: 15.02%

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

HSCZ vs. VTI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	10.99%	25.74%	12.89%	17.03%	-11.46%	17.75%	6.40%	27.89%	-13.99%	24.52%
VTI Vanguard Total Stock Market ETF	9.62%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.23%	21.21%

Correlation

The correlation between HSCZ and VTI is 0.71, 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	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.74
Correlation (All Time) Calculated using the full available price history since Jul 14, 2015	0.71

The correlation between HSCZ and VTI has been stable across timeframes, ranging from 0.71 to 0.77 - a consistent structural relationship.

HSCZ vs. VTI - Sectors Allocation Comparison

Sectors	HSCZ	VTI
Industrials	24.4%	9.5%
Financial Services	13.3%	11.9%
Technology	10.8%	33.3%
Consumer Cyclical	10.8%	9.8%
Basic Materials	10.8%	2.0%
Real Estate	9.5%	2.4%
Healthcare	4.8%	9.1%
Consumer Defensive	3.9%	4.7%
Energy	3.8%	3.8%
Communication Services	3.1%	10.1%
Utilities	2.4%	2.7%

Return for Risk

HSCZ vs. VTI — Risk / Return Rank

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

HSCZ

HSCZ Risk / Return Rank: 80
HSCZ Sharpe Ratio Rank: 86
HSCZ Sortino Ratio Rank: 87
HSCZ Omega Ratio Rank: 85
HSCZ Calmar Ratio Rank: 67
HSCZ Martin Ratio Rank: 75

VTI

VTI Risk / Return Rank: 70
VTI Sharpe Ratio Rank: 70
VTI Sortino Ratio Rank: 68
VTI Omega Ratio Rank: 69
VTI Calmar Ratio Rank: 64
VTI Martin Ratio Rank: 76

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.

HSCZ vs. VTI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) and Vanguard Total Stock Market ETF (VTI). 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.

	HSCZ	VTI	Difference
Sharpe ratio: Return per unit of total volatility	2.45	1.97	+0.48
Sortino ratio: Return per unit of downside risk	3.44	2.67	+0.76
Omega ratio: Gain probability vs. loss probability	1.45	1.35	+0.10
Calmar ratio: Return relative to maximum drawdown	2.95	2.79	+0.16
Martin ratio: Return relative to average drawdown	12.57	12.52	+0.05

HSCZ vs. VTI - Sharpe Ratio Comparison

The current HSCZ Sharpe Ratio is 2.45, which is comparable to the VTI Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of HSCZ and VTI, 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

HSCZ vs. VTI - Drawdown Comparison

The maximum HSCZ drawdown since its inception was -34.89%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for HSCZ and VTI.

Drawdown Indicators

	HSCZ	VTI	Difference
Max Drawdown Largest peak-to-trough decline	-34.89%	-55.45%	+20.56%
Max Drawdown (1Y) Largest decline over 1 year	-9.61%	-8.92%	-0.69%
Max Drawdown (3Y) Largest decline over 3 years	-12.81%	-19.30%	+6.49%
Max Drawdown (5Y) Largest decline over 5 years	-20.11%	-25.36%	+5.25%
Max Drawdown (10Y) Largest decline over 10 years	-34.89%	-35.00%	+0.11%
Current Drawdown Current decline from peak	-0.60%	-2.14%	+1.54%
Average Drawdown Average peak-to-trough decline	-4.64%	-8.02%	+3.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.25%	1.99%	+0.26%

Volatility

HSCZ vs. VTI - Volatility Comparison

The current volatility for iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) is 4.08%, while Vanguard Total Stock Market ETF (VTI) has a volatility of 4.50%. This indicates that HSCZ experiences smaller price fluctuations and is considered to be less risky than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HSCZ	VTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.08%	4.50%	-0.42%
Volatility (6M) Calculated over the trailing 6-month period	9.68%	9.82%	-0.14%
Volatility (1Y) Calculated over the trailing 1-year period	11.60%	12.64%	-1.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.52%	17.47%	-3.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.68%	18.33%	-2.65%

HSCZ vs. VTI - Expense Ratio Comparison

HSCZ has a 0.43% expense ratio, which is higher than VTI's 0.03% expense ratio.

Dividends

HSCZ vs. VTI - Dividend Comparison

HSCZ's dividend yield for the trailing twelve months is around 2.93%, more than VTI's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	2.93%	3.25%	3.26%	2.98%	26.91%	2.90%	1.46%	4.66%	6.15%	2.52%	2.57%	1.75%
VTI Vanguard Total Stock Market ETF	1.03%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both HSCZ and VTI in my portfolio?

HSCZ and VTI have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HSCZ or VTI?

VTI has higher volatility (4.50%) compared to HSCZ (4.08%). In terms of maximum drawdown, HSCZ dropped -34.89% vs VTI's -55.45%.

Which ETF is better, HSCZ or VTI?

On 10-year performance, VTI leads with 15.02% vs 12.35% for HSCZ. On fees, VTI is cheaper at 0.03% per year. On volatility, HSCZ has been the lower-risk option at 4.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HSCZ or VTI?

Over the 10-year period, VTI has performed better with a 15.02% return vs 12.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HSCZ or VTI?

VTI is cheaper with a 0.03% expense ratio, compared with 0.43% for HSCZ.

Which ETF pays a higher dividend yield, HSCZ or VTI?

HSCZ has the higher dividend yield at 2.93%, compared with 1.03% for VTI.

What is the main difference between HSCZ and VTI?

HSCZ is categorized as Foreign Small & Mid Cap Equities, while VTI is Large Cap Blend Equities. HSCZ tracks MSCI EAFE Small-Cap 100% Hedged to USD Index, while VTI tracks CRSP US Total Market Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.43% for HSCZ and 0.03% for VTI.

Which has better risk-adjusted returns?

HSCZ currently has the higher Sharpe Ratio (2.45 vs 1.97), 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.