PSSMX vs. VSMAX

Last updated Aug 1, 2026

PSSMX (Principal SmallCap S&P 600 Index Fund) and VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) are both Small Cap Blend Equities funds. Over the past 10 years, PSSMX returned 10.79%/yr vs 10.94%/yr for VSMAX. Their 0.97 correlation means they have historically moved very closely together. PSSMX charges 0.73%/yr vs 0.05%/yr for VSMAX.

Performance

PSSMX vs. VSMAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal SmallCap S&P 600 Index Fund (PSSMX) 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, PSSMX achieves a 21.15% return, which is significantly higher than VSMAX's 15.44% return. Both investments have delivered pretty close results over the past 10 years, with PSSMX having a 10.79% annualized return and VSMAX not far ahead at 10.94%.

PSSMX

• 1D: 0.85%
• 1M: -0.64%
• 6M: 14.80%
• YTD: 21.15%
• 1Y: 35.09%
• 3Y*: 15.43%
• 5Y*: 8.35%
• 10Y*: 10.79%
• ALL TIME*: 9.60%

VSMAX

• 1D: 0.91%
• 1M: -1.57%
• 6M: 10.35%
• YTD: 15.44%
• 1Y: 26.12%
• 3Y*: 13.94%
• 5Y*: 7.48%
• 10Y*: 10.94%
• ALL TIME*: 8.92%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
PSSMX Principal SmallCap S&P 600 Index Fund	$0.00	$0.00	$0.00
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	$0.00	$0.00	$0.00

PSSMX vs. VSMAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSSMX Principal SmallCap S&P 600 Index Fund	21.15%	5.34%	16.60%	15.18%	-16.69%	25.39%	10.65%	21.99%	-9.42%	12.46%
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	15.44%	8.83%	14.23%	18.17%	-17.61%	17.74%	19.06%	27.36%	-9.33%	16.24%

Correlation

The correlation between PSSMX and VSMAX is 0.94, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.94
Correlation (3Y) Balances recent behavior with more history.	0.95
Correlation (5Y) Shows whether the relationship held over a longer period.	0.96
Correlation (10Y) Provides a long-term view across more market conditions.	0.95
Correlation (All Time) Calculated using the full available price history since Jan 2, 2001	0.97

The correlation between PSSMX and VSMAX has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.

Return for Risk

PSSMX vs. VSMAX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

PSSMX

PSSMX Risk / Return Rank: 82
PSSMX Sharpe Ratio Rank: 77
PSSMX Sortino Ratio Rank: 78
PSSMX Omega Ratio Rank: 72
PSSMX Calmar Ratio Rank: 92
PSSMX Martin Ratio Rank: 90

VSMAX

VSMAX Risk / Return Rank: 66
VSMAX Sharpe Ratio Rank: 58
VSMAX Sortino Ratio Rank: 60
VSMAX Omega Ratio Rank: 53
VSMAX Calmar Ratio Rank: 79
VSMAX Martin Ratio Rank: 80

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

PSSMX vs. VSMAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal SmallCap S&P 600 Index Fund (PSSMX) 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.

	PSSMX	VSMAX	Difference
Sharpe ratio: Return per unit of total volatility	1.81	1.40	+0.41
Sortino ratio: Return per unit of downside risk	2.68	2.05	+0.64
Omega ratio: Gain probability vs. loss probability	1.32	1.25	+0.07
Calmar ratio: Return relative to maximum drawdown	3.59	2.56	+1.03
Martin ratio: Return relative to average drawdown	12.27	9.40	+2.87

PSSMX vs. VSMAX - Sharpe Ratio Comparison

The current PSSMX Sharpe Ratio is 1.81, which is comparable to the VSMAX Sharpe Ratio of 1.40. The chart below compares the historical Sharpe Ratios of PSSMX 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

PSSMX vs. VSMAX - Drawdown Comparison

The maximum PSSMX drawdown since its inception was -58.43%, roughly equal to the maximum VSMAX drawdown of -59.68%. Use the drawdown chart below to compare losses from any high point for PSSMX and VSMAX.

Drawdown Indicators

	PSSMX	VSMAX	Difference
Max Drawdown Largest peak-to-trough decline	-58.43%	-59.68%	+1.25%
Max Drawdown (1Y) Largest decline over 1 year	-8.76%	-8.97%	+0.21%
Max Drawdown (3Y) Largest decline over 3 years	-24.30%	-25.25%	+0.95%
Max Drawdown (5Y) Largest decline over 5 years	-27.01%	-28.14%	+1.13%
Max Drawdown (10Y) Largest decline over 10 years	-44.85%	-41.82%	-3.03%
Current Drawdown Current decline from peak	-1.87%	-2.36%	+0.49%
Average Drawdown Average peak-to-trough decline	-9.47%	-9.64%	+0.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.57%	2.45%	+0.12%

Volatility

PSSMX vs. VSMAX - Volatility Comparison

Principal SmallCap S&P 600 Index Fund (PSSMX) and Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) have volatilities of 3.47% and 3.32%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSSMX	VSMAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.47%	3.32%	+0.15%
Volatility (6M) Calculated over the trailing 6-month period	11.69%	11.98%	-0.29%
Volatility (1Y) Calculated over the trailing 1-year period	17.41%	16.47%	+0.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.62%	20.67%	+0.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.86%	21.51%	+1.35%

PSSMX vs. VSMAX - Expense Ratio Comparison

PSSMX has a 0.73% expense ratio, which is higher than VSMAX's 0.05% expense ratio.

Dividends

PSSMX vs. VSMAX - Dividend Comparison

PSSMX's dividend yield for the trailing twelve months is around 8.24%, more than VSMAX's 1.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSSMX Principal SmallCap S&P 600 Index Fund	8.24%	9.98%	15.91%	3.75%	10.45%	8.23%	1.67%	6.56%	13.08%	6.03%	6.15%	8.07%
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	1.21%	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 PSSMX and VSMAX in my portfolio?

With a correlation of 0.94, PSSMX and VSMAX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, PSSMX or VSMAX?

PSSMX has higher volatility (3.47%) compared to VSMAX (3.32%). In terms of maximum drawdown, PSSMX dropped -58.43% vs VSMAX's -59.68%.

Which has better risk-adjusted returns?

PSSMX currently has the higher Sharpe Ratio (1.81 vs 1.40), 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.