VB vs. VSMAX

Last updated Jun 3, 2026

VB (Vanguard Small-Cap ETF) and VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) are both Small Cap Blend Equities funds from Vanguard. Over the past 10 years, VB returned 11.38%/yr vs 11.28%/yr for VSMAX. With a 0.99 correlation, they move nearly in lockstep. Both charge a 0.05% expense ratio.

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 14.91% return, which is significantly higher than VSMAX's 14.03% return. Both investments have delivered pretty close results over the past 10 years, with VB having a 11.38% annualized return and VSMAX not far behind at 11.28%.

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%

VSMAX

• 1D: -0.17%
• 1M: 2.89%
• YTD: 14.03%
• 6M: 15.16%
• 1Y: 30.33%
• 3Y*: 16.99%
• 5Y*: 7.01%
• 10Y*: 11.28%

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

VB vs. VSMAX - 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%
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	14.03%	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 1.00 - 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	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Feb 2, 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	20.8%	20.8%
Technology	17.2%	17.2%
Financial Services	12.6%	12.6%
Consumer Cyclical	11.3%	11.3%
Healthcare	11.1%	11.1%
Real Estate	7.6%	7.6%
Basic Materials	4.8%	4.8%
Energy	4.7%	4.7%
Consumer Defensive	3.4%	3.4%
Utilities	3.3%	3.3%
Communication Services	3.1%	3.1%

Return for Risk

VB vs. VSMAX — 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

VSMAX

VSMAX Risk / Return Rank: 50
VSMAX Sharpe Ratio Rank: 41
VSMAX Sortino Ratio Rank: 40
VSMAX Omega Ratio Rank: 37
VSMAX Calmar Ratio Rank: 72
VSMAX Martin Ratio Rank: 62

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. 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.

	VB	VSMAX	Difference
Sharpe ratio Return per unit of total volatility	1.94	1.86	+0.07
Sortino ratio Return per unit of downside risk	2.75	2.66	+0.09
Omega ratio Gain probability vs. loss probability	1.34	1.32	+0.01
Calmar ratio Return relative to maximum drawdown	3.48	3.31	+0.16
Martin ratio Return relative to average drawdown	12.82	12.26	+0.57
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. VSMAX - Sharpe Ratio Comparison

The current VB Sharpe Ratio is 1.94, which is comparable to the VSMAX Sharpe Ratio of 1.86. 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.

Sharpe Ratios by Period

	VB	VSMAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.94	1.86	+0.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.36	0.34	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.53	0.52	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	0.39	+0.05

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	0.00%	-0.32%	+0.32%
Average Drawdown Average peak-to-trough decline	-8.44%	-9.70%	+1.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.43%	2.43%	0.00%

Volatility

VB vs. VSMAX - Volatility Comparison

Vanguard Small-Cap ETF (VB) and Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) have volatilities of 4.40% and 4.35%, 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	VSMAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.40%	4.35%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	11.73%	11.71%	+0.02%
Volatility (1Y) Calculated over the trailing 1-year period	16.27%	16.29%	-0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.75%	20.71%	+0.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.43%	21.56%	-0.13%

VB vs. VSMAX - Expense Ratio Comparison

Both VB and VSMAX have an expense ratio of 0.05%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VB vs. VSMAX - Dividend Comparison

VB's dividend yield for the trailing twelve months is around 1.19%, which matches VSMAX's 1.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	1.19%	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 1.00, 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 (4.40%) compared to VSMAX (4.35%). 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 (1.94 vs 1.86), 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.