VB vs. VSMAX

Last updated Aug 4, 2026

VB (Vanguard Small-Cap ETF) and VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) are both Small Cap Blend Equities funds from Vanguard tracking the CRSP US Small Cap Index. Both are passively managed. Over the past 10 years, VB returned 11.04%/yr vs 11.06%/yr for VSMAX. Their 0.99 correlation means they have historically moved very closely together. VB charges 0.03%/yr vs 0.05%/yr for VSMAX.

Performance

VB vs. VSMAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Small-Cap ETF (VB) 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, VB achieves a 16.95% return, which is significantly higher than VSMAX's 15.17% return. Both investments have delivered pretty close results over the past 10 years, with VB having a 11.04% annualized return and VSMAX not far ahead at 11.06%.

VB

• 1D: 1.52%
• 1M: -0.23%
• 6M: 11.01%
• YTD: 16.95%
• 1Y: 27.83%
• 3Y*: 15.29%
• 5Y*: 7.95%
• 10Y*: 11.04%
• ALL TIME*: 9.95%

VSMAX

• 1D: -0.24%
• 1M: -1.81%
• 6M: 9.26%
• YTD: 15.17%
• 1Y: 25.82%
• 3Y*: 13.99%
• 5Y*: 7.42%
• 10Y*: 11.06%
• ALL TIME*: 8.91%

*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)
VB Vanguard Small-Cap ETF	$124.44M	$120.08M	$165.69M
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	$0.00	$0.00	$0.00

VB vs. VSMAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VB Vanguard Small-Cap ETF	16.95%	8.87%	14.17%	18.22%	-17.51%	17.57%	19.19%	27.34%	-9.34%	16.26%
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	15.17%	8.83%	14.23%	18.17%	-17.61%	17.74%	19.06%	27.36%	-9.33%	16.24%

Correlation

The correlation between VB and VSMAX is 0.99 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.99
Correlation (3Y) Balances recent behavior with more history.	1.00
Correlation (5Y) Shows whether the relationship held over a longer period.	1.00
Correlation (10Y) Provides a long-term view across more market conditions.	1.00
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.99

The correlation between VB and VSMAX has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.

VB vs. VSMAX - Sectors Allocation Comparison

Sectors	VB	VSMAX
Industrials	19.9%	19.9%
Technology	17.9%	17.9%
Healthcare	12.5%	12.5%
Financial Services	12.4%	12.4%
Consumer Cyclical	11.6%	11.6%
Real Estate	7.9%	7.9%
Basic Materials	4.4%	4.4%
Energy	3.9%	3.9%
Consumer Defensive	3.3%	3.3%
Utilities	3.3%	3.3%
Communication Services	2.9%	2.9%

Return for Risk

VB vs. VSMAX — Risk / Return Rank

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

VB

VB Risk / Return Rank: 77
VB Sharpe Ratio Rank: 74
VB Sortino Ratio Rank: 75
VB Omega Ratio Rank: 70
VB Calmar Ratio Rank: 83
VB Martin Ratio Rank: 83

VSMAX

VSMAX Risk / Return Rank: 61
VSMAX Sharpe Ratio Rank: 51
VSMAX Sortino Ratio Rank: 52
VSMAX Omega Ratio Rank: 47
VSMAX Calmar Ratio Rank: 79
VSMAX Martin Ratio Rank: 77

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.

VB vs. VSMAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap ETF (VB) 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.

	VB	VSMAX	Difference
Sharpe ratio: Return per unit of total volatility	1.70	1.46	+0.25
Sortino ratio: Return per unit of downside risk	2.45	2.13	+0.33
Omega ratio: Gain probability vs. loss probability	1.30	1.26	+0.04
Calmar ratio: Return relative to maximum drawdown	3.11	2.67	+0.45
Martin ratio: Return relative to average drawdown	11.36	9.77	+1.58

VB vs. VSMAX - Sharpe Ratio Comparison

The current VB Sharpe Ratio is 1.70, which is comparable to the VSMAX Sharpe Ratio of 1.46. The chart below compares the historical Sharpe Ratios of VB 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

VB vs. VSMAX - Drawdown Comparison

The maximum VB drawdown since its inception was -59.56%, roughly equal to the maximum VSMAX drawdown of -59.68%. Use the drawdown chart below to compare losses from any high point for VB and VSMAX.

Drawdown Indicators

	VB	VSMAX	Difference
Max Drawdown Largest peak-to-trough decline	-59.56%	-59.68%	+0.12%
Max Drawdown (1Y) Largest decline over 1 year	-8.98%	-8.97%	-0.01%
Max Drawdown (3Y) Largest decline over 3 years	-25.36%	-25.25%	-0.11%
Max Drawdown (5Y) Largest decline over 5 years	-28.15%	-28.14%	-0.01%
Max Drawdown (10Y) Largest decline over 10 years	-42.05%	-41.82%	-0.23%
Current Drawdown Current decline from peak	-1.15%	-2.59%	+1.44%
Average Drawdown Average peak-to-trough decline	-8.39%	-9.64%	+1.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.46%	2.45%	+0.01%

Volatility

VB vs. VSMAX - Volatility Comparison

Vanguard Small-Cap ETF (VB) has a higher volatility of 3.71% compared to Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) at 3.29%. This indicates that VB's price experiences larger fluctuations and is considered to be riskier than VSMAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VB	VSMAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.71%	3.29%	+0.42%
Volatility (6M) Calculated over the trailing 6-month period	12.04%	11.98%	+0.06%
Volatility (1Y) Calculated over the trailing 1-year period	16.44%	16.47%	-0.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.71%	20.66%	+0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.38%	21.51%	-0.13%

VB vs. VSMAX - Expense Ratio Comparison

VB has a 0.03% expense ratio, which is lower than VSMAX's 0.05% 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. VSMAX - Dividend Comparison

VB's dividend yield for the trailing twelve months is around 1.20%, which matches VSMAX's 1.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VB Vanguard Small-Cap ETF	1.20%	1.33%	1.30%	1.55%	1.59%	1.24%	1.14%	1.39%	1.67%	1.35%	1.50%	1.48%
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 VB and VSMAX in my portfolio?

With a correlation of 0.99, VB 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, VB or VSMAX?

VB has higher volatility (3.71%) compared to VSMAX (3.29%). In terms of maximum drawdown, VB dropped -59.56% vs VSMAX's -59.68%.

Which has better risk-adjusted returns?

VB currently has the higher Sharpe Ratio (1.70 vs 1.46), 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.