HSMV vs. VIOO

Last updated Jun 23, 2026

HSMV (First Trust Horizon Managed Volatility Small/Mid ETF) and VIOO (Vanguard S&P Small-Cap 600 ETF) are both Small Cap Blend Equities funds. HSMV is actively managed, while VIOO is passively managed. Over the past 5 years, HSMV returned 4.56%/yr vs 6.28%/yr for VIOO. Their correlation of 0.89 suggests significant overlap in exposure. HSMV charges 0.80%/yr vs 0.07%/yr for VIOO.

Performance

HSMV vs. VIOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) and Vanguard S&P Small-Cap 600 ETF (VIOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HSMV achieves a 5.35% return, which is significantly lower than VIOO's 19.31% return.

HSMV

• 1D: 0.15%
• 1M: 0.17%
• YTD: 5.35%
• 6M: 4.27%
• 1Y: 7.28%
• 3Y*: 9.56%
• 5Y*: 4.56%
• 10Y*: —

VIOO

• 1D: -0.35%
• 1M: 4.23%
• YTD: 19.31%
• 6M: 16.84%
• 1Y: 34.71%
• 3Y*: 16.19%
• 5Y*: 6.28%
• 10Y*: 11.31%

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

HSMV vs. VIOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
HSMV First Trust Horizon Managed Volatility Small/Mid ETF	5.35%	1.57%	13.17%	5.01%	-9.44%	23.72%	34.70%
VIOO Vanguard S&P Small-Cap 600 ETF	19.31%	6.04%	8.48%	16.16%	-16.26%	26.79%	68.47%

Correlation

The correlation between HSMV and VIOO 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	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (All Time) Calculated using the full available price history since Apr 7, 2020	0.89

The correlation between HSMV and VIOO shifts across timeframes, from 0.71 (1 year) to 0.89 (all time), reflecting how their relationship changes across market environments.

HSMV vs. VIOO - Sectors Allocation Comparison

Sectors	HSMV	VIOO
Real Estate	24.3%	7.7%
Financial Services	16.7%	16.9%
Industrials	14.6%	15.5%
Utilities	11.7%	2.0%
Consumer Cyclical	7.9%	13.4%
Consumer Defensive	7.2%	3.5%
Basic Materials	5.8%	5.1%
Healthcare	4.7%	11.0%
Energy	2.8%	5.9%
Communication Services	2.4%	3.6%
Technology	1.9%	15.5%

Return for Risk

HSMV vs. VIOO — Risk / Return Rank

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

HSMV

HSMV Risk / Return Rank: 20
HSMV Sharpe Ratio Rank: 20
HSMV Sortino Ratio Rank: 20
HSMV Omega Ratio Rank: 18
HSMV Calmar Ratio Rank: 21
HSMV Martin Ratio Rank: 23

VIOO

VIOO Risk / Return Rank: 67
VIOO Sharpe Ratio Rank: 62
VIOO Sortino Ratio Rank: 64
VIOO Omega Ratio Rank: 57
VIOO Calmar Ratio Rank: 79
VIOO Martin Ratio Rank: 74

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.

HSMV vs. VIOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) and Vanguard S&P Small-Cap 600 ETF (VIOO). 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.

	HSMV	VIOO	Difference
Sharpe ratio: Return per unit of total volatility	0.69	1.97	-1.28
Sortino ratio: Return per unit of downside risk	1.09	2.85	-1.76
Omega ratio: Gain probability vs. loss probability	1.12	1.34	-0.22
Calmar ratio: Return relative to maximum drawdown	0.93	3.98	-3.04
Martin ratio: Return relative to average drawdown	2.77	13.43	-10.65

HSMV vs. VIOO - Sharpe Ratio Comparison

The current HSMV Sharpe Ratio is 0.69, which is lower than the VIOO Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of HSMV and VIOO, 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

HSMV vs. VIOO - Drawdown Comparison

The maximum HSMV drawdown since its inception was -19.16%, smaller than the maximum VIOO drawdown of -44.15%. Use the drawdown chart below to compare losses from any high point for HSMV and VIOO.

Drawdown Indicators

	HSMV	VIOO	Difference
Max Drawdown Largest peak-to-trough decline	-19.16%	-44.15%	+24.99%
Max Drawdown (1Y) Largest decline over 1 year	-7.83%	-8.77%	+0.94%
Max Drawdown (3Y) Largest decline over 3 years	-15.45%	-27.93%	+12.48%
Max Drawdown (5Y) Largest decline over 5 years	-19.16%	-27.93%	+8.77%
Max Drawdown (10Y) Largest decline over 10 years	—	-44.15%	—
Current Drawdown Current decline from peak	-2.29%	-0.47%	-1.82%
Average Drawdown Average peak-to-trough decline	-5.59%	-7.31%	+1.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.63%	2.59%	+0.04%

Volatility

HSMV vs. VIOO - Volatility Comparison

The current volatility for First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) is 3.45%, while Vanguard S&P Small-Cap 600 ETF (VIOO) has a volatility of 4.97%. This indicates that HSMV experiences smaller price fluctuations and is considered to be less risky than VIOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HSMV	VIOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.45%	4.97%	-1.52%
Volatility (6M) Calculated over the trailing 6-month period	7.58%	12.11%	-4.53%
Volatility (1Y) Calculated over the trailing 1-year period	10.60%	17.77%	-7.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.99%	21.40%	-6.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.03%	22.98%	-6.95%

HSMV vs. VIOO - Expense Ratio Comparison

HSMV has a 0.80% expense ratio, which is higher than VIOO's 0.07% expense ratio.

Dividends

HSMV vs. VIOO - Dividend Comparison

HSMV's dividend yield for the trailing twelve months is around 1.96%, more than VIOO's 1.14% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HSMV First Trust Horizon Managed Volatility Small/Mid ETF	1.96%	2.01%	1.43%	1.43%	1.26%	0.76%	0.80%	0.00%	0.00%	0.00%	0.00%	0.00%
VIOO Vanguard S&P Small-Cap 600 ETF	1.14%	1.36%	1.48%	1.47%	1.51%	1.16%	1.09%	1.37%	1.32%	1.11%	1.06%	1.26%

Frequently Asked Questions

Can I hold both HSMV and VIOO in my portfolio?

HSMV and VIOO 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, HSMV or VIOO?

VIOO has higher volatility (4.97%) compared to HSMV (3.45%). In terms of maximum drawdown, HSMV dropped -19.16% vs VIOO's -44.15%.

Which ETF is better, HSMV or VIOO?

On 5-year performance, VIOO leads with 6.28% vs 4.56% for HSMV. On fees, VIOO is cheaper at 0.07% per year. On volatility, HSMV has been the lower-risk option at 3.45%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HSMV or VIOO?

Over the 5-year period, VIOO has performed better with a 6.28% return vs 4.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HSMV or VIOO?

VIOO is cheaper with a 0.07% expense ratio, compared with 0.80% for HSMV.

Which ETF pays a higher dividend yield, HSMV or VIOO?

HSMV has the higher dividend yield at 1.96%, compared with 1.14% for VIOO.

What is the main difference between HSMV and VIOO?

They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.80% for HSMV and 0.07% for VIOO.

Which has better risk-adjusted returns?

VIOO currently has the higher Sharpe Ratio (1.97 vs 0.69), 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.