VB vs. PXH

Last updated Jun 14, 2026

VB (Vanguard Small-Cap ETF) and PXH (Invesco FTSE RAFI Emerging Markets ETF) are both exchange-traded funds - VB is a Small Cap Blend Equities fund tracking the CRSP US Small Cap Index, while PXH is a Emerging Markets Equities fund tracking the FTSE RAFI Emerging Markets Index. Both are passively managed. Over the past 10 years, VB returned 11.61%/yr vs 10.91%/yr for PXH. A 0.67 correlation means they provide meaningful diversification when combined. VB charges 0.05%/yr vs 0.50%/yr for PXH.

Performance

VB vs. PXH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Small-Cap ETF (VB) and Invesco FTSE RAFI Emerging Markets ETF (PXH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VB achieves a 15.33% return, which is significantly higher than PXH's 12.73% return. Over the past 10 years, VB has outperformed PXH with an annualized return of 11.61%, while PXH has yielded a comparatively lower 10.91% annualized return.

VB

• 1D: 0.70%
• 1M: 5.17%
• YTD: 15.33%
• 6M: 13.69%
• 1Y: 30.83%
• 3Y*: 16.14%
• 5Y*: 6.98%
• 10Y*: 11.61%

PXH

• 1D: 0.66%
• 1M: 1.72%
• YTD: 12.73%
• 6M: 14.41%
• 1Y: 30.72%
• 3Y*: 20.06%
• 5Y*: 8.70%
• 10Y*: 10.91%

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

VB vs. PXH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VB Vanguard Small-Cap ETF	15.33%	8.87%	14.17%	18.22%	-17.51%	17.57%	19.19%	27.34%	-9.34%	16.26%
PXH Invesco FTSE RAFI Emerging Markets ETF	12.73%	31.44%	12.09%	13.93%	-15.18%	8.31%	-1.91%	16.77%	-8.68%	26.60%

Correlation

The correlation between VB and PXH is 0.61, 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	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since Sep 28, 2007	0.67

The correlation between VB and PXH shifts across timeframes, from 0.56 (3 years) to 0.67 (all time), reflecting how their relationship changes across market environments.

VB vs. PXH - Sectors Allocation Comparison

Sectors	VB	PXH
Industrials	20.8%	4.4%
Technology	17.2%	24.5%
Financial Services	12.6%	24.8%
Consumer Cyclical	11.3%	9.8%
Healthcare	11.1%	0.8%
Real Estate	7.6%	1.7%
Basic Materials	4.8%	11.8%
Energy	4.7%	11.5%
Consumer Defensive	3.4%	2.7%
Utilities	3.3%	2.2%
Communication Services	3.1%	5.9%

Return for Risk

VB vs. PXH — Risk / Return Rank

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

VB

VB Risk / Return Rank: 64
VB Sharpe Ratio Rank: 59
VB Sortino Ratio Rank: 60
VB Omega Ratio Rank: 55
VB Calmar Ratio Rank: 73
VB Martin Ratio Rank: 73

PXH

PXH Risk / Return Rank: 64
PXH Sharpe Ratio Rank: 64
PXH Sortino Ratio Rank: 61
PXH Omega Ratio Rank: 65
PXH Calmar Ratio Rank: 65
PXH Martin Ratio Rank: 64

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. PXH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap ETF (VB) and Invesco FTSE RAFI Emerging Markets ETF (PXH). 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	PXH	Difference
Sharpe ratio: Return per unit of total volatility	1.73	1.84	-0.11
Sortino ratio: Return per unit of downside risk	2.47	2.49	-0.03
Omega ratio: Gain probability vs. loss probability	1.30	1.34	-0.04
Calmar ratio: Return relative to maximum drawdown	3.21	2.85	+0.36
Martin ratio: Return relative to average drawdown	11.80	10.21	+1.60

VB vs. PXH - Sharpe Ratio Comparison

The current VB Sharpe Ratio is 1.73, which is comparable to the PXH Sharpe Ratio of 1.84. The chart below compares the historical Sharpe Ratios of VB and PXH, 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

VB vs. PXH - Drawdown Comparison

The maximum VB drawdown since its inception was -59.56%, smaller than the maximum PXH drawdown of -63.63%. Use the drawdown chart below to compare losses from any high point for VB and PXH.

Drawdown Indicators

	VB	PXH	Difference
Max Drawdown Largest peak-to-trough decline	-59.56%	-63.63%	+4.07%
Max Drawdown (1Y) Largest decline over 1 year	-8.98%	-10.24%	+1.26%
Max Drawdown (3Y) Largest decline over 3 years	-25.36%	-17.72%	-7.64%
Max Drawdown (5Y) Largest decline over 5 years	-28.15%	-29.59%	+1.44%
Max Drawdown (10Y) Largest decline over 10 years	-42.05%	-40.42%	-1.63%
Current Drawdown Current decline from peak	0.00%	-3.27%	+3.27%
Average Drawdown Average peak-to-trough decline	-8.43%	-16.84%	+8.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.44%	2.85%	-0.41%

Volatility

VB vs. PXH - Volatility Comparison

The current volatility for Vanguard Small-Cap ETF (VB) is 5.41%, while Invesco FTSE RAFI Emerging Markets ETF (PXH) has a volatility of 6.41%. This indicates that VB experiences smaller price fluctuations and is considered to be less risky than PXH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VB	PXH	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.41%	6.41%	-1.00%
Volatility (6M) Calculated over the trailing 6-month period	12.24%	13.09%	-0.85%
Volatility (1Y) Calculated over the trailing 1-year period	16.68%	15.90%	+0.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.80%	17.87%	+2.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.44%	20.06%	+1.38%

VB vs. PXH - Expense Ratio Comparison

VB has a 0.05% expense ratio, which is lower than PXH's 0.50% expense ratio.

Dividends

VB vs. PXH - Dividend Comparison

VB's dividend yield for the trailing twelve months is around 1.18%, less than PXH's 3.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PXH Invesco FTSE RAFI Emerging Markets ETF	3.49%	4.02%	4.43%	4.84%	5.33%	4.69%	2.79%	3.28%	3.30%	2.74%	1.97%	3.44%
VB Vanguard Small-Cap ETF	1.18%	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 PXH in my portfolio?

VB and PXH have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VB or PXH?

PXH has higher volatility (6.41%) compared to VB (5.41%). In terms of maximum drawdown, VB dropped -59.56% vs PXH's -63.63%.

Which ETF is better, VB or PXH?

On 10-year performance, VB leads with 11.61% vs 10.91% for PXH. On fees, VB is cheaper at 0.05% per year. On volatility, VB has been the lower-risk option at 5.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VB or PXH?

Over the 10-year period, VB has performed better with a 11.61% return vs 10.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VB or PXH?

VB is cheaper with a 0.05% expense ratio, compared with 0.50% for PXH.

Which ETF pays a higher dividend yield, VB or PXH?

PXH has the higher dividend yield at 3.49%, compared with 1.18% for VB.

What is the main difference between VB and PXH?

VB is categorized as Small Cap Blend Equities, while PXH is Emerging Markets Equities. VB tracks CRSP US Small Cap Index, while PXH tracks FTSE RAFI Emerging Markets Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.05% for VB and 0.50% for PXH.

Which has better risk-adjusted returns?

PXH currently has the higher Sharpe Ratio (1.84 vs 1.73), 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.