VB vs. MSFT
VB (Vanguard Small-Cap ETF) is Small Cap Blend Equities fund tracking the CRSP US Small Cap Index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, VB returned 11.68%/yr vs 24.60%/yr for MSFT. A 0.53 correlation means they provide meaningful diversification when combined.
Performance
VB vs. MSFT - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VB achieves a 16.13% return, which is significantly higher than MSFT's -16.97% return. Over the past 10 years, VB has underperformed MSFT with an annualized return of 11.68%, while MSFT has yielded a comparatively higher 24.60% annualized return.
VB
- 1D
- 0.70%
- 1M
- 5.90%
- YTD
- 16.13%
- 6M
- 15.08%
- 1Y
- 31.74%
- 3Y*
- 16.53%
- 5Y*
- 7.37%
- 10Y*
- 11.68%
MSFT
- 1D
- 2.31%
- 1M
- -5.05%
- YTD
- -16.97%
- 6M
- -15.43%
- 1Y
- -15.16%
- 3Y*
- 6.13%
- 5Y*
- 10.11%
- 10Y*
- 24.60%
VB vs. MSFT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VB Vanguard Small-Cap ETF | 16.13% | 8.87% | 14.17% | 18.22% | -17.51% | 17.57% | 19.19% | 27.34% | -9.34% | 16.26% |
MSFT Microsoft Corporation | -16.97% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
Correlation
The correlation between VB and MSFT is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.20 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.33 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.47 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.50 |
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004 | 0.53 |
Over the past year, the correlation between VB and MSFT has dropped to 0.20 - well below their long-term average of 0.53, suggesting their price drivers have been diverging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VB vs. MSFT — Risk / Return Rank
VB
MSFT
VB vs. MSFT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap ETF (VB) and Microsoft Corporation (MSFT). 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.
| VB | MSFT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.52 | ||
| Sortino ratioReturn per unit of downside risk | +3.39 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 0.91 | +0.42 |
| Calmar ratioReturn relative to maximum drawdown | 3.55 | -0.45 | +4.00 |
| Martin ratioReturn relative to average drawdown | 13.04 | -0.92 | +13.96 |
Loading charts...
Drawdowns
VB vs. MSFT - Drawdown Comparison
The maximum VB drawdown since its inception was -59.56%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for VB and MSFT.
Loading charts...
Drawdown Indicators
| VB | MSFT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.56% | -69.38% | +9.82% |
Max Drawdown (1Y)Largest decline over 1 year | -8.98% | -33.91% | +24.93% |
Max Drawdown (3Y)Largest decline over 3 years | -25.36% | -33.91% | +8.55% |
Max Drawdown (5Y)Largest decline over 5 years | -28.15% | -37.15% | +9.00% |
Max Drawdown (10Y)Largest decline over 10 years | -42.05% | -37.15% | -4.90% |
Current DrawdownCurrent decline from peak | 0.00% | -25.79% | +25.79% |
Average DrawdownAverage peak-to-trough decline | -8.43% | -21.78% | +13.35% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.44% | 16.56% | -14.12% |
Volatility
VB vs. MSFT - Volatility Comparison
The current volatility for Vanguard Small-Cap ETF (VB) is 5.43%, while Microsoft Corporation (MSFT) has a volatility of 10.74%. This indicates that VB experiences smaller price fluctuations and is considered to be less risky than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VB | MSFT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.43% | 10.74% | -5.31% |
Volatility (6M)Calculated over the trailing 6-month period | 12.21% | 22.41% | -10.20% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.63% | 25.54% | -8.91% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.81% | 26.68% | -5.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.45% | 27.07% | -5.62% |
Dividends
VB vs. MSFT - Dividend Comparison
VB's dividend yield for the trailing twelve months is around 1.17%, more than MSFT's 0.89% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MSFT Microsoft Corporation | 0.89% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
VB Vanguard Small-Cap ETF | 1.17% | 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
VB and MSFT have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MSFT has higher volatility (10.74%) compared to VB (5.43%). In terms of maximum drawdown, VB dropped -59.56% vs MSFT's -69.38%.
VB currently has the higher Sharpe Ratio (1.92 vs -0.60), 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.
Find the right allocation for VB and MSFT
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer