MGK vs. VSMAX

Last updated Jun 13, 2026

MGK (Vanguard Mega Cap Growth ETF) and VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) are both funds - MGK is a Large Cap Growth Equities fund tracking the CRSP US Mega Cap Growth Index, while VSMAX is a Small Cap Blend Equities fund tracking the CRSP US Small Cap Index. Both are passively managed. Over the past 10 years, MGK returned 18.85%/yr vs 11.48%/yr for VSMAX. A 0.79 correlation means they provide meaningful diversification when combined. Both charge a 0.05% expense ratio.

Performance

MGK vs. VSMAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mega Cap Growth ETF (MGK) and Vanguard Small-Cap Index Fund Admiral Shares (VSMAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MGK achieves a 5.33% return, which is significantly lower than VSMAX's 14.59% return. Over the past 10 years, MGK has outperformed VSMAX with an annualized return of 18.85%, while VSMAX has yielded a comparatively lower 11.48% annualized return.

MGK

• 1D: 0.22%
• 1M: -2.06%
• YTD: 5.33%
• 6M: 6.21%
• 1Y: 23.03%
• 3Y*: 24.17%
• 5Y*: 14.87%
• 10Y*: 18.85%

VSMAX

• 1D: 2.58%
• 1M: 3.08%
• YTD: 14.59%
• 6M: 12.93%
• 1Y: 27.91%
• 3Y*: 16.37%
• 5Y*: 6.83%
• 10Y*: 11.48%

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

MGK vs. VSMAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MGK Vanguard Mega Cap Growth ETF	5.33%	20.67%	32.94%	51.67%	-33.59%	28.58%	41.01%	37.38%	-2.91%	29.49%
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	14.59%	8.83%	14.23%	18.17%	-17.61%	17.74%	19.06%	27.36%	-9.33%	16.24%

Correlation

The correlation between MGK and VSMAX is 0.58, 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	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.70
Correlation (10Y) Calculated over the trailing 10-year period	0.71
Correlation (All Time) Calculated using the full available price history since Dec 27, 2007	0.79

Over the past year, the correlation between MGK and VSMAX has dropped to 0.58 - well below their long-term average of 0.79, suggesting their price drivers have been diverging.

MGK vs. VSMAX - Sectors Allocation Comparison

Sectors	MGK	VSMAX
Technology	56.1%	17.2%
Communication Services	17.3%	3.1%
Consumer Cyclical	12.8%	11.3%
Healthcare	4.5%	11.1%
Financial Services	4.5%	12.6%
Real Estate	1.3%	7.6%
Utilities	1.2%	3.3%
Industrials	1.1%	20.8%
Basic Materials	0.7%	4.8%
Consumer Defensive	0.4%	3.4%
Energy	-	4.7%

Return for Risk

MGK vs. VSMAX — Risk / Return Rank

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

MGK

MGK Risk / Return Rank: 39
MGK Sharpe Ratio Rank: 44
MGK Sortino Ratio Rank: 42
MGK Omega Ratio Rank: 42
MGK Calmar Ratio Rank: 31
MGK Martin Ratio Rank: 35

VSMAX

VSMAX Risk / Return Rank: 62
VSMAX Sharpe Ratio Rank: 52
VSMAX Sortino Ratio Rank: 54
VSMAX Omega Ratio Rank: 46
VSMAX Calmar Ratio Rank: 81
VSMAX Martin Ratio Rank: 78

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.

MGK vs. VSMAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mega Cap Growth ETF (MGK) and Vanguard Small-Cap Index Fund Admiral Shares (VSMAX). 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.

	MGK	VSMAX	Difference
Sharpe ratio: Return per unit of total volatility	1.37	1.67	-0.30
Sortino ratio: Return per unit of downside risk	1.89	2.39	-0.50
Omega ratio: Gain probability vs. loss probability	1.24	1.29	-0.05
Calmar ratio: Return relative to maximum drawdown	1.37	3.11	-1.73
Martin ratio: Return relative to average drawdown	4.65	11.42	-6.77

MGK vs. VSMAX - Sharpe Ratio Comparison

The current MGK Sharpe Ratio is 1.37, which is comparable to the VSMAX Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of MGK and VSMAX, 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

MGK vs. VSMAX - Drawdown Comparison

The maximum MGK drawdown since its inception was -48.43%, smaller than the maximum VSMAX drawdown of -59.68%. Use the drawdown chart below to compare losses from any high point for MGK and VSMAX.

Drawdown Indicators

	MGK	VSMAX	Difference
Max Drawdown Largest peak-to-trough decline	-48.43%	-59.68%	+11.25%
Max Drawdown (1Y) Largest decline over 1 year	-16.85%	-8.97%	-7.88%
Max Drawdown (3Y) Largest decline over 3 years	-23.36%	-25.25%	+1.89%
Max Drawdown (5Y) Largest decline over 5 years	-36.01%	-28.14%	-7.87%
Max Drawdown (10Y) Largest decline over 10 years	-36.01%	-41.82%	+5.81%
Current Drawdown Current decline from peak	-5.63%	-0.32%	-5.31%
Average Drawdown Average peak-to-trough decline	-7.58%	-9.68%	+2.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.97%	2.44%	+2.53%

Volatility

MGK vs. VSMAX - Volatility Comparison

Vanguard Mega Cap Growth ETF (MGK) has a higher volatility of 5.96% compared to Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) at 5.47%. This indicates that MGK's price experiences larger fluctuations and is considered to be riskier than VSMAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MGK	VSMAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.96%	5.47%	+0.49%
Volatility (6M) Calculated over the trailing 6-month period	13.29%	12.32%	+0.97%
Volatility (1Y) Calculated over the trailing 1-year period	16.87%	16.69%	+0.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.72%	20.77%	+1.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.93%	21.59%	+0.34%

MGK vs. VSMAX - Expense Ratio Comparison

Both MGK and VSMAX have an expense ratio of 0.05%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

MGK vs. VSMAX - Dividend Comparison

MGK's dividend yield for the trailing twelve months is around 0.33%, less than VSMAX's 1.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGK Vanguard Mega Cap Growth ETF	0.33%	0.35%	0.43%	0.50%	0.70%	0.41%	0.65%	0.85%	1.12%	1.23%	1.53%	1.43%
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	1.19%	1.33%	1.30%	1.56%	1.54%	1.24%	1.14%	1.39%	1.67%	1.35%	1.49%	1.48%

Frequently Asked Questions

Can I hold both MGK and VSMAX in my portfolio?

MGK and VSMAX have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MGK or VSMAX?

MGK has higher volatility (5.96%) compared to VSMAX (5.47%). In terms of maximum drawdown, MGK dropped -48.43% vs VSMAX's -59.68%.

Which has better risk-adjusted returns?

VSMAX currently has the higher Sharpe Ratio (1.67 vs 1.37), 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.