VB vs. DFSTX

Last updated Jun 3, 2026

VB (Vanguard Small-Cap ETF) and DFSTX (DFA U.S. Small Cap Portfolio) are both Small Cap Blend Equities funds. Over the past 10 years, VB returned 11.38%/yr vs 10.85%/yr for DFSTX. With a 0.97 correlation, they move nearly in lockstep. VB charges 0.05%/yr vs 0.27%/yr for DFSTX.

Performance

VB vs. DFSTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Small-Cap ETF (VB) and DFA U.S. Small Cap Portfolio (DFSTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VB achieves a 14.91% return, which is significantly higher than DFSTX's 13.83% return. Both investments have delivered pretty close results over the past 10 years, with VB having a 11.38% annualized return and DFSTX not far behind at 10.85%.

VB

• 1D: 0.75%
• 1M: 3.68%
• YTD: 14.91%
• 6M: 16.03%
• 1Y: 31.39%
• 3Y*: 17.31%
• 5Y*: 7.35%
• 10Y*: 11.38%

DFSTX

• 1D: 0.08%
• 1M: 1.80%
• YTD: 13.83%
• 6M: 14.64%
• 1Y: 30.03%
• 3Y*: 15.95%
• 5Y*: 7.88%
• 10Y*: 10.85%

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

VB vs. DFSTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VB Vanguard Small-Cap ETF	14.91%	8.87%	14.17%	18.22%	-17.51%	17.57%	19.19%	27.34%	-9.34%	16.26%
DFSTX DFA U.S. Small Cap Portfolio	13.83%	8.07%	11.50%	17.66%	-13.50%	30.50%	11.19%	21.78%	-13.20%	11.19%

Correlation

The correlation between VB and DFSTX is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.97

The correlation between VB and DFSTX has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

Return for Risk

VB vs. DFSTX — Risk / Return Rank

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

VB

VB Risk / Return Rank: 61
VB Sharpe Ratio Rank: 56
VB Sortino Ratio Rank: 57
VB Omega Ratio Rank: 54
VB Calmar Ratio Rank: 69
VB Martin Ratio Rank: 68

DFSTX

DFSTX Risk / Return Rank: 47
DFSTX Sharpe Ratio Rank: 38
DFSTX Sortino Ratio Rank: 40
DFSTX Omega Ratio Rank: 34
DFSTX Calmar Ratio Rank: 70
DFSTX Martin Ratio Rank: 54

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.

VB vs. DFSTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap ETF (VB) and DFA U.S. Small Cap Portfolio (DFSTX). 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.

	VB	DFSTX	Difference
Sharpe ratio Return per unit of total volatility	1.94	1.79	+0.15
Sortino ratio Return per unit of downside risk	2.75	2.63	+0.12
Omega ratio Gain probability vs. loss probability	1.34	1.31	+0.02
Calmar ratio Return relative to maximum drawdown	3.48	3.24	+0.24
Martin ratio Return relative to average drawdown	12.82	11.01	+1.81
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VB vs. DFSTX - Sharpe Ratio Comparison

The current VB Sharpe Ratio is 1.94, which is comparable to the DFSTX Sharpe Ratio of 1.79. The chart below compares the historical Sharpe Ratios of VB and DFSTX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VB	DFSTX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.94	1.79	+0.15
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.36	0.39	-0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.53	0.49	+0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	0.50	-0.06

Drawdowns

VB vs. DFSTX - Drawdown Comparison

The maximum VB drawdown since its inception was -59.56%, roughly equal to the maximum DFSTX drawdown of -60.99%. Use the drawdown chart below to compare losses from any high point for VB and DFSTX.

Drawdown Indicators

	VB	DFSTX	Difference
Max Drawdown Largest peak-to-trough decline	-59.56%	-60.99%	+1.43%
Max Drawdown (1Y) Largest decline over 1 year	-8.98%	-9.16%	+0.18%
Max Drawdown (3Y) Largest decline over 3 years	-25.36%	-25.91%	+0.55%
Max Drawdown (5Y) Largest decline over 5 years	-28.15%	-25.91%	-2.24%
Max Drawdown (10Y) Largest decline over 10 years	-42.05%	-44.78%	+2.73%
Current Drawdown Current decline from peak	0.00%	-0.47%	+0.47%
Average Drawdown Average peak-to-trough decline	-8.44%	-8.77%	+0.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.43%	2.69%	-0.26%

Volatility

VB vs. DFSTX - Volatility Comparison

Vanguard Small-Cap ETF (VB) and DFA U.S. Small Cap Portfolio (DFSTX) have volatilities of 4.40% and 4.40%, 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

	VB	DFSTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.40%	4.40%	0.00%
Volatility (6M) Calculated over the trailing 6-month period	11.73%	11.55%	+0.18%
Volatility (1Y) Calculated over the trailing 1-year period	16.27%	16.78%	-0.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.75%	20.56%	+0.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.43%	22.08%	-0.65%

VB vs. DFSTX - Expense Ratio Comparison

VB has a 0.05% expense ratio, which is lower than DFSTX's 0.27% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VB vs. DFSTX - Dividend Comparison

VB's dividend yield for the trailing twelve months is around 1.19%, more than DFSTX's 0.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFSTX DFA U.S. Small Cap Portfolio	0.95%	1.08%	1.05%	2.45%	5.18%	6.39%	1.08%	3.30%	5.16%	4.56%	3.10%	5.90%
VB Vanguard Small-Cap ETF	1.19%	1.33%	1.30%	1.55%	1.59%	1.24%	1.14%	1.39%	1.67%	1.35%	1.50%	1.48%

Frequently Asked Questions

Can I hold both VB and DFSTX in my portfolio?

With a correlation of 0.96, VB and DFSTX 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, VB or DFSTX?

DFSTX has higher volatility (4.40%) compared to VB (4.40%). In terms of maximum drawdown, VB dropped -59.56% vs DFSTX's -60.99%.

Which has better risk-adjusted returns?

VB currently has the higher Sharpe Ratio (1.94 vs 1.79), 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.