VBR vs. SMCF

Last updated Jun 23, 2026

VBR (Vanguard Small-Cap Value ETF) and SMCF (Themes US Small Cap Cash Flow Champions ETF) are both Small Cap Value Equities funds - VBR tracks the CRSP US Small Cap Value Index while SMCF tracks the Solactive US Small Cap Cash Flow Champions Index - Benchmark TR Gross. Both are passively managed. Over the past year, VBR returned 27.72% vs 32.75% for SMCF. Their correlation of 0.89 suggests significant overlap in exposure. VBR charges 0.05%/yr vs 0.29%/yr for SMCF.

Performance

VBR vs. SMCF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Small-Cap Value ETF (VBR) and Themes US Small Cap Cash Flow Champions ETF (SMCF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBR achieves a 13.42% return, which is significantly lower than SMCF's 16.19% return.

VBR

• 1D: 0.18%
• 1M: 2.65%
• YTD: 13.42%
• 6M: 11.41%
• 1Y: 27.72%
• 3Y*: 16.95%
• 5Y*: 8.85%
• 10Y*: 11.02%

SMCF

• 1D: 0.79%
• 1M: 0.85%
• YTD: 16.19%
• 6M: 13.61%
• 1Y: 32.75%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VBR vs. SMCF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VBR Vanguard Small-Cap Value ETF	13.42%	9.09%	12.40%	6.16%
SMCF Themes US Small Cap Cash Flow Champions ETF	16.19%	9.56%	16.30%	7.07%

Correlation

The correlation between VBR and SMCF is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.85
Correlation (All Time) Calculated using the full available price history since Dec 13, 2023	0.89

The correlation between VBR and SMCF has been stable across timeframes, ranging from 0.85 to 0.89 - a consistent structural relationship.

VBR vs. SMCF - Sectors Allocation Comparison

Sectors	VBR	SMCF
Financial Services	17.5%	48.8%
Industrials	17.4%	9.1%
Consumer Cyclical	12.5%	3.1%
Technology	12.1%	13.0%
Real Estate	10.5%	0.5%
Healthcare	8.3%	4.8%
Basic Materials	6.0%	0.7%
Utilities	4.6%	-
Energy	4.3%	17.1%
Consumer Defensive	4.0%	1.3%
Communication Services	2.8%	1.6%

Return for Risk

VBR vs. SMCF — Risk / Return Rank

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

VBR

VBR Risk / Return Rank: 59
VBR Sharpe Ratio Rank: 56
VBR Sortino Ratio Rank: 58
VBR Omega Ratio Rank: 52
VBR Calmar Ratio Rank: 65
VBR Martin Ratio Rank: 63

SMCF

SMCF Risk / Return Rank: 69
SMCF Sharpe Ratio Rank: 64
SMCF Sortino Ratio Rank: 66
SMCF Omega Ratio Rank: 61
SMCF Calmar Ratio Rank: 86
SMCF Martin Ratio Rank: 69

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.

VBR vs. SMCF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap Value ETF (VBR) and Themes US Small Cap Cash Flow Champions ETF (SMCF). 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.

	VBR	SMCF	Difference
Sharpe ratio: Return per unit of total volatility	1.82	2.04	-0.22
Sortino ratio: Return per unit of downside risk	2.67	2.94	-0.27
Omega ratio: Gain probability vs. loss probability	1.31	1.36	-0.05
Calmar ratio: Return relative to maximum drawdown	3.14	4.61	-1.47
Martin ratio: Return relative to average drawdown	11.11	12.34	-1.23

VBR vs. SMCF - Sharpe Ratio Comparison

The current VBR Sharpe Ratio is 1.82, which is comparable to the SMCF Sharpe Ratio of 2.04. The chart below compares the historical Sharpe Ratios of VBR and SMCF, 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

VBR vs. SMCF - Drawdown Comparison

The maximum VBR drawdown since its inception was -61.98%, which is greater than SMCF's maximum drawdown of -28.48%. Use the drawdown chart below to compare losses from any high point for VBR and SMCF.

Drawdown Indicators

	VBR	SMCF	Difference
Max Drawdown Largest peak-to-trough decline	-61.98%	-28.48%	-33.50%
Max Drawdown (1Y) Largest decline over 1 year	-8.85%	-7.13%	-1.72%
Max Drawdown (3Y) Largest decline over 3 years	-24.19%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-24.19%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-45.28%	—	—
Current Drawdown Current decline from peak	-1.03%	-0.66%	-0.37%
Average Drawdown Average peak-to-trough decline	-8.25%	-5.20%	-3.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.50%	2.66%	-0.16%

Volatility

VBR vs. SMCF - Volatility Comparison

Vanguard Small-Cap Value ETF (VBR) has a higher volatility of 3.97% compared to Themes US Small Cap Cash Flow Champions ETF (SMCF) at 3.23%. This indicates that VBR's price experiences larger fluctuations and is considered to be riskier than SMCF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBR	SMCF	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.97%	3.23%	+0.74%
Volatility (6M) Calculated over the trailing 6-month period	10.66%	9.85%	+0.81%
Volatility (1Y) Calculated over the trailing 1-year period	15.33%	16.12%	-0.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.73%	20.22%	-0.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.75%	20.22%	+1.53%

VBR vs. SMCF - Expense Ratio Comparison

VBR has a 0.05% expense ratio, which is lower than SMCF's 0.29% expense ratio.

Dividends

VBR vs. SMCF - Dividend Comparison

VBR's dividend yield for the trailing twelve months is around 1.73%, less than SMCF's 3.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SMCF Themes US Small Cap Cash Flow Champions ETF	3.37%	3.91%	0.61%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VBR Vanguard Small-Cap Value ETF	1.73%	1.95%	1.98%	2.12%	2.03%	1.75%	1.68%	2.06%	2.35%	1.79%	1.77%	1.99%

Frequently Asked Questions

Can I hold both VBR and SMCF in my portfolio?

VBR and SMCF have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBR or SMCF?

VBR has higher volatility (3.97%) compared to SMCF (3.23%). In terms of maximum drawdown, VBR dropped -61.98% vs SMCF's -28.48%.

Which ETF is better, VBR or SMCF?

On 1-year performance, SMCF leads with 32.75% vs 27.72% for VBR. On fees, VBR is cheaper at 0.05% per year. On volatility, SMCF has been the lower-risk option at 3.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VBR or SMCF?

Over the 1-year period, SMCF has performed better with a 32.75% return vs 27.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VBR or SMCF?

VBR is cheaper with a 0.05% expense ratio, compared with 0.29% for SMCF.

Which ETF pays a higher dividend yield, VBR or SMCF?

SMCF has the higher dividend yield at 3.37%, compared with 1.73% for VBR.

What is the main difference between VBR and SMCF?

VBR tracks CRSP US Small Cap Value Index, while SMCF tracks Solactive US Small Cap Cash Flow Champions Index - Benchmark TR Gross. They also come from different issuers: Vanguard and Themes. Their fees differ too: 0.05% for VBR and 0.29% for SMCF.

Which has better risk-adjusted returns?

SMCF currently has the higher Sharpe Ratio (2.04 vs 1.82), 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.