SCZ vs. VSS

Last updated Jun 23, 2026

SCZ (iShares MSCI EAFE Small-Cap ETF) and VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) are both Foreign Small & Mid Cap Equities funds - SCZ tracks the MSCI EAFE Small Cap Index while VSS tracks the FTSE Global Small Cap ex US Index. Both are passively managed. Over the past 10 years, SCZ returned 8.92%/yr vs 8.76%/yr for VSS. Their correlation of 0.94 suggests significant overlap in exposure. SCZ charges 0.40%/yr vs 0.07%/yr for VSS.

Performance

SCZ vs. VSS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI EAFE Small-Cap ETF (SCZ) 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, SCZ achieves a 9.50% return, which is significantly lower than VSS's 10.76% return. Both investments have delivered pretty close results over the past 10 years, with SCZ having a 8.92% annualized return and VSS not far behind at 8.76%.

SCZ

• 1D: 0.16%
• 1M: -0.31%
• YTD: 9.50%
• 6M: 9.97%
• 1Y: 24.34%
• 3Y*: 16.72%
• 5Y*: 5.65%
• 10Y*: 8.92%

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)

SCZ vs. VSS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCZ iShares MSCI EAFE Small-Cap ETF	9.50%	32.08%	1.52%	12.98%	-21.27%	10.12%	11.71%	24.68%	-17.64%	32.72%
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 SCZ and VSS is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Apr 6, 2009	0.94

The correlation between SCZ and VSS has been stable across timeframes, ranging from 0.93 to 0.95 - a consistent structural relationship.

SCZ vs. VSS - Sectors Allocation Comparison

Sectors	SCZ	VSS
Industrials	24.2%	18.7%
Financial Services	12.5%	10.1%
Consumer Cyclical	12.3%	9.1%
Technology	10.8%	14.5%
Basic Materials	10.2%	12.2%
Real Estate	9.9%	7.1%
Healthcare	5.9%	6.0%
Consumer Defensive	4.7%	3.5%
Communication Services	3.8%	2.3%
Energy	3.5%	4.4%
Utilities	2.2%	2.5%

Return for Risk

SCZ vs. VSS — Risk / Return Rank

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

SCZ

SCZ Risk / Return Rank: 48
SCZ Sharpe Ratio Rank: 49
SCZ Sortino Ratio Rank: 49
SCZ Omega Ratio Rank: 49
SCZ Calmar Ratio Rank: 44
SCZ Martin Ratio Rank: 49

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.

SCZ vs. VSS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI EAFE Small-Cap ETF (SCZ) 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.

	SCZ	VSS	Difference
Sharpe ratio: Return per unit of total volatility	1.65	1.74	-0.09
Sortino ratio: Return per unit of downside risk	2.34	2.38	-0.03
Omega ratio: Gain probability vs. loss probability	1.30	1.32	-0.02
Calmar ratio: Return relative to maximum drawdown	2.14	2.33	-0.19
Martin ratio: Return relative to average drawdown	8.07	8.70	-0.63

SCZ vs. VSS - Sharpe Ratio Comparison

The current SCZ 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 SCZ 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

SCZ vs. VSS - Drawdown Comparison

The maximum SCZ drawdown since its inception was -61.86%, which is greater than VSS's maximum drawdown of -43.51%. Use the drawdown chart below to compare losses from any high point for SCZ and VSS.

Drawdown Indicators

	SCZ	VSS	Difference
Max Drawdown Largest peak-to-trough decline	-61.86%	-43.51%	-18.35%
Max Drawdown (1Y) Largest decline over 1 year	-11.43%	-11.62%	+0.19%
Max Drawdown (3Y) Largest decline over 3 years	-15.06%	-15.73%	+0.67%
Max Drawdown (5Y) Largest decline over 5 years	-36.87%	-33.93%	-2.94%
Max Drawdown (10Y) Largest decline over 10 years	-41.07%	-43.51%	+2.44%
Current Drawdown Current decline from peak	-1.84%	-2.41%	+0.57%
Average Drawdown Average peak-to-trough decline	-13.03%	-9.62%	-3.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.02%	3.10%	-0.08%

Volatility

SCZ vs. VSS - Volatility Comparison

The current volatility for iShares MSCI EAFE Small-Cap ETF (SCZ) is 4.73%, while Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a volatility of 5.97%. This indicates that SCZ 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

	SCZ	VSS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.73%	5.97%	-1.24%
Volatility (6M) Calculated over the trailing 6-month period	12.53%	13.61%	-1.08%
Volatility (1Y) Calculated over the trailing 1-year period	14.89%	15.59%	-0.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.79%	16.59%	+0.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.40%	17.28%	+0.12%

SCZ vs. VSS - Expense Ratio Comparison

SCZ has a 0.40% expense ratio, which is higher than VSS's 0.07% expense ratio.

Dividends

SCZ vs. VSS - Dividend Comparison

SCZ's dividend yield for the trailing twelve months is around 3.19%, more than VSS's 3.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCZ iShares MSCI EAFE Small-Cap ETF	3.19%	3.30%	3.50%	2.96%	1.99%	2.96%	1.52%	3.52%	2.79%	2.38%	2.82%	2.06%
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 SCZ and VSS in my portfolio?

With a correlation of 0.93, SCZ and VSS 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, SCZ or VSS?

VSS has higher volatility (5.97%) compared to SCZ (4.73%). In terms of maximum drawdown, SCZ dropped -61.86% vs VSS's -43.51%.

Which ETF is better, SCZ or VSS?

On 10-year performance, SCZ leads with 8.92% vs 8.76% for VSS. On fees, VSS is cheaper at 0.07% per year. On volatility, SCZ has been the lower-risk option at 4.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCZ or VSS?

Over the 10-year period, SCZ has performed better with a 8.92% return vs 8.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCZ or VSS?

VSS is cheaper with a 0.07% expense ratio, compared with 0.40% for SCZ.

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

SCZ has the higher dividend yield at 3.19%, compared with 3.15% for VSS.

What is the main difference between SCZ and VSS?

SCZ tracks MSCI EAFE Small Cap Index, while VSS tracks FTSE Global Small Cap ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.40% for SCZ 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.