VBK vs. SMMD

Last updated Jun 4, 2026

VBK (Vanguard Small-Cap Growth ETF) and SMMD (iShares Russell 2500 ETF) are both Small Cap Growth Equities funds - VBK tracks the CRSP US Small Cap Growth Index while SMMD tracks the Russell 2500 Index. Both are passively managed. Over the past 5 years, VBK returned 5.68%/yr vs 7.64%/yr for SMMD. Their correlation of 0.90 suggests significant overlap in exposure. VBK charges 0.07%/yr vs 0.15%/yr for SMMD.

Performance

VBK vs. SMMD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Small-Cap Growth ETF (VBK) and iShares Russell 2500 ETF (SMMD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBK achieves a 17.41% return, which is significantly lower than SMMD's 18.37% return.

VBK

• 1D: -1.06%
• 1M: 4.84%
• YTD: 17.41%
• 6M: 16.96%
• 1Y: 32.77%
• 3Y*: 17.73%
• 5Y*: 5.68%
• 10Y*: 11.74%

SMMD

• 1D: -0.63%
• 1M: 4.41%
• YTD: 18.37%
• 6M: 18.20%
• 1Y: 36.03%
• 3Y*: 18.53%
• 5Y*: 7.64%
• 10Y*: —

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

VBK vs. SMMD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBK Vanguard Small-Cap Growth ETF	17.41%	8.50%	16.50%	21.45%	-28.44%	5.66%	35.44%	32.75%	-5.70%	10.99%
SMMD iShares Russell 2500 ETF	18.37%	11.72%	11.87%	17.71%	-18.53%	18.30%	19.98%	28.01%	-10.58%	10.82%

Correlation

The correlation between VBK and SMMD is 0.95 - 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	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Jul 10, 2017	0.90

The correlation between VBK and SMMD has been stable across timeframes, ranging from 0.90 to 0.96 - a consistent structural relationship.

VBK vs. SMMD - Sectors Allocation Comparison

Sectors	VBK	SMMD
Technology	25.9%	18.8%
Industrials	24.7%	21.0%
Healthcare	15.3%	11.8%
Consumer Cyclical	9.6%	10.6%
Financial Services	5.6%	13.8%
Energy	4.8%	4.9%
Real Estate	3.9%	6.7%
Communication Services	3.5%	2.5%
Basic Materials	3.2%	4.4%
Consumer Defensive	2.4%	2.8%
Utilities	1.2%	2.7%

Return for Risk

VBK vs. SMMD — Risk / Return Rank

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

VBK

VBK Risk / Return Rank: 51
VBK Sharpe Ratio Rank: 49
VBK Sortino Ratio Rank: 46
VBK Omega Ratio Rank: 44
VBK Calmar Ratio Rank: 57
VBK Martin Ratio Rank: 60

SMMD

SMMD Risk / Return Rank: 66
SMMD Sharpe Ratio Rank: 61
SMMD Sortino Ratio Rank: 63
SMMD Omega Ratio Rank: 58
SMMD Calmar Ratio Rank: 74
SMMD Martin Ratio Rank: 75

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.

VBK vs. SMMD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap Growth ETF (VBK) and iShares Russell 2500 ETF (SMMD). 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.

	VBK	SMMD	Difference
Sharpe ratio: Return per unit of total volatility	1.72	2.11	-0.39
Sortino ratio: Return per unit of downside risk	2.38	2.96	-0.58
Omega ratio: Gain probability vs. loss probability	1.29	1.36	-0.07
Calmar ratio: Return relative to maximum drawdown	2.88	3.75	-0.87
Martin ratio: Return relative to average drawdown	10.98	14.29	-3.32
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VBK vs. SMMD - Sharpe Ratio Comparison

The current VBK Sharpe Ratio is 1.72, which is comparable to the SMMD Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of VBK and SMMD, 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

	VBK	SMMD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.72	2.11	-0.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.24	0.37	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.50	-0.07

Drawdowns

VBK vs. SMMD - Drawdown Comparison

The maximum VBK drawdown since its inception was -58.68%, which is greater than SMMD's maximum drawdown of -41.06%. Use the drawdown chart below to compare losses from any high point for VBK and SMMD.

Drawdown Indicators

	VBK	SMMD	Difference
Max Drawdown Largest peak-to-trough decline	-58.68%	-41.06%	-17.62%
Max Drawdown (1Y) Largest decline over 1 year	-11.44%	-9.66%	-1.78%
Max Drawdown (3Y) Largest decline over 3 years	-27.54%	-25.50%	-2.04%
Max Drawdown (5Y) Largest decline over 5 years	-38.39%	-28.26%	-10.13%
Max Drawdown (10Y) Largest decline over 10 years	-38.70%	—	—
Current Drawdown Current decline from peak	-1.06%	-0.63%	-0.43%
Average Drawdown Average peak-to-trough decline	-10.15%	-8.37%	-1.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.99%	2.53%	+0.46%

Volatility

VBK vs. SMMD - Volatility Comparison

Vanguard Small-Cap Growth ETF (VBK) and iShares Russell 2500 ETF (SMMD) have volatilities of 5.37% and 5.17%, 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

	VBK	SMMD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.37%	5.17%	+0.20%
Volatility (6M) Calculated over the trailing 6-month period	14.62%	12.58%	+2.04%
Volatility (1Y) Calculated over the trailing 1-year period	19.21%	17.20%	+2.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.48%	20.82%	+2.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.86%	22.37%	+0.49%

VBK vs. SMMD - Expense Ratio Comparison

VBK has a 0.07% expense ratio, which is lower than SMMD's 0.15% 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

VBK vs. SMMD - Dividend Comparison

VBK's dividend yield for the trailing twelve months is around 0.45%, less than SMMD's 1.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SMMD iShares Russell 2500 ETF	1.05%	1.28%	1.27%	1.44%	1.79%	1.12%	1.31%	1.50%	2.45%	0.68%	0.00%	0.00%
VBK Vanguard Small-Cap Growth ETF	0.45%	0.54%	0.54%	0.68%	0.55%	0.36%	0.44%	0.57%	0.79%	0.82%	1.08%	0.98%

Frequently Asked Questions

Can I hold both VBK and SMMD in my portfolio?

With a correlation of 0.95, VBK and SMMD 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, VBK or SMMD?

VBK has higher volatility (5.37%) compared to SMMD (5.17%). In terms of maximum drawdown, VBK dropped -58.68% vs SMMD's -41.06%.

Which ETF is better, VBK or SMMD?

On 5-year performance, SMMD leads with 7.64% vs 5.68% for VBK. On fees, VBK is cheaper at 0.07% per year. On volatility, SMMD has been the lower-risk option at 5.17%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VBK or SMMD?

Over the 5-year period, SMMD has performed better with a 7.64% return vs 5.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VBK or SMMD?

VBK is cheaper with a 0.07% expense ratio, compared with 0.15% for SMMD.

Which ETF pays a higher dividend yield, VBK or SMMD?

SMMD has the higher dividend yield at 1.05%, compared with 0.45% for VBK.

What is the main difference between VBK and SMMD?

VBK tracks CRSP US Small Cap Growth Index, while SMMD tracks Russell 2500 Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.07% for VBK and 0.15% for SMMD.

Which has better risk-adjusted returns?

SMMD currently has the higher Sharpe Ratio (2.11 vs 1.72), 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.