VCR vs. MSFT

Last updated Jun 9, 2026

VCR (Vanguard Consumer Discretionary ETF) is Consumer Discretionary Equities fund tracking the MSCI US Investable Market Consumer Discretionary 25/50 Index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, VCR returned 13.45%/yr vs 24.64%/yr for MSFT. A 0.57 correlation means they provide meaningful diversification when combined.

Performance

VCR vs. MSFT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Consumer Discretionary ETF (VCR) and Microsoft Corporation (MSFT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VCR achieves a -1.82% return, which is significantly higher than MSFT's -14.48% return. Over the past 10 years, VCR has underperformed MSFT with an annualized return of 13.45%, while MSFT has yielded a comparatively higher 24.64% annualized return.

VCR

• 1D: 0.64%
• 1M: -3.13%
• YTD: -1.82%
• 6M: -0.68%
• 1Y: 10.03%
• 3Y*: 13.71%
• 5Y*: 5.83%
• 10Y*: 13.45%

MSFT

• 1D: -1.18%
• 1M: -0.60%
• YTD: -14.48%
• 6M: -15.77%
• 1Y: -11.77%
• 3Y*: 8.85%
• 5Y*: 11.09%
• 10Y*: 24.64%

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

VCR vs. MSFT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VCR Vanguard Consumer Discretionary ETF	-1.82%	5.77%	24.27%	40.38%	-35.15%	24.86%	48.36%	27.45%	-2.31%	22.82%
MSFT Microsoft Corporation	-14.48%	15.58%	12.93%	58.19%	-28.02%	52.48%	42.53%	57.56%	20.80%	40.73%

Correlation

The correlation between VCR and MSFT is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.48
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 Feb 2, 2004	0.57

Over the past year, the correlation between VCR and MSFT has dropped to 0.27 - well below their long-term average of 0.57, suggesting their price drivers have been diverging.

Return for Risk

VCR vs. MSFT — Risk / Return Rank

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

VCR

VCR Risk / Return Rank: 19
VCR Sharpe Ratio Rank: 19
VCR Sortino Ratio Rank: 19
VCR Omega Ratio Rank: 18
VCR Calmar Ratio Rank: 18
VCR Martin Ratio Rank: 19

MSFT

MSFT Risk / Return Rank: 24
MSFT Sharpe Ratio Rank: 21
MSFT Sortino Ratio Rank: 21
MSFT Omega Ratio Rank: 20
MSFT Calmar Ratio Rank: 31
MSFT Martin Ratio Rank: 28

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.

VCR vs. MSFT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Consumer Discretionary ETF (VCR) and Microsoft Corporation (MSFT). 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.

	VCR	MSFT	Difference
Sharpe ratio: Return per unit of total volatility	0.55	-0.47	+1.02
Sortino ratio: Return per unit of downside risk	0.89	-0.49	+1.38
Omega ratio: Gain probability vs. loss probability	1.10	0.94	+0.17
Calmar ratio: Return relative to maximum drawdown	0.65	-0.35	+0.99
Martin ratio: Return relative to average drawdown	2.01	-0.73	+2.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCR vs. MSFT - Sharpe Ratio Comparison

The current VCR Sharpe Ratio is 0.55, which is higher than the MSFT Sharpe Ratio of -0.47. The chart below compares the historical Sharpe Ratios of VCR and MSFT, 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

	VCR	MSFT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.55	-0.47	+1.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.24	0.42	-0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.60	0.91	-0.31
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.74	-0.24

Drawdowns

VCR vs. MSFT - Drawdown Comparison

The maximum VCR drawdown since its inception was -61.54%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for VCR and MSFT.

Drawdown Indicators

	VCR	MSFT	Difference
Max Drawdown Largest peak-to-trough decline	-61.54%	-69.38%	+7.84%
Max Drawdown (1Y) Largest decline over 1 year	-15.59%	-33.91%	+18.32%
Max Drawdown (3Y) Largest decline over 3 years	-27.36%	-33.91%	+6.55%
Max Drawdown (5Y) Largest decline over 5 years	-39.20%	-37.15%	-2.05%
Max Drawdown (10Y) Largest decline over 10 years	-39.20%	-37.15%	-2.05%
Current Drawdown Current decline from peak	-6.29%	-23.56%	+17.27%
Average Drawdown Average peak-to-trough decline	-9.40%	-21.78%	+12.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.01%	16.13%	-11.12%

Volatility

VCR vs. MSFT - Volatility Comparison

The current volatility for Vanguard Consumer Discretionary ETF (VCR) is 5.30%, while Microsoft Corporation (MSFT) has a volatility of 10.25%. This indicates that VCR experiences smaller price fluctuations and is considered to be less risky than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCR	MSFT	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.30%	10.25%	-4.95%
Volatility (6M) Calculated over the trailing 6-month period	13.20%	22.36%	-9.16%
Volatility (1Y) Calculated over the trailing 1-year period	18.44%	25.31%	-6.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.00%	26.64%	-2.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.42%	27.06%	-4.64%

Dividends

VCR vs. MSFT - Dividend Comparison

VCR's dividend yield for the trailing twelve months is around 0.74%, less than MSFT's 0.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSFT Microsoft Corporation	0.86%	0.70%	0.73%	0.74%	1.06%	0.68%	0.94%	1.20%	1.69%	1.86%	2.37%	2.33%
VCR Vanguard Consumer Discretionary ETF	0.74%	0.74%	0.74%	0.84%	0.98%	0.79%	1.71%	1.17%	1.37%	1.21%	1.60%	1.32%

Frequently Asked Questions

Can I hold both VCR and MSFT in my portfolio?

VCR and MSFT have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VCR or MSFT?

MSFT has higher volatility (10.25%) compared to VCR (5.30%). In terms of maximum drawdown, VCR dropped -61.54% vs MSFT's -69.38%.

Which has better risk-adjusted returns?

VCR currently has the higher Sharpe Ratio (0.55 vs -0.47), 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.