VEMAX vs. MSMLX

Last updated Jun 4, 2026

VEMAX (Vanguard Emerging Markets Stock Index Fund Admiral Shares) and MSMLX (Matthews Emerging Markets Small Companies Fund) are both mutual funds - VEMAX is a Emerging Markets Equities fund managed by Vanguard, while MSMLX is a Emerging Markets Diversified fund managed by Matthews. Over the past 10 years, VEMAX returned 9.04%/yr vs 11.73%/yr for MSMLX. A 0.78 correlation means they provide meaningful diversification when combined. VEMAX charges 0.14%/yr vs 1.37%/yr for MSMLX.

Performance

VEMAX vs. MSMLX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX) and Matthews Emerging Markets Small Companies Fund (MSMLX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEMAX achieves a 13.97% return, which is significantly lower than MSMLX's 25.47% return. Over the past 10 years, VEMAX has underperformed MSMLX with an annualized return of 9.04%, while MSMLX has yielded a comparatively higher 11.73% annualized return.

VEMAX

• 1D: 1.58%
• 1M: 4.22%
• YTD: 13.97%
• 6M: 15.57%
• 1Y: 32.68%
• 3Y*: 18.62%
• 5Y*: 5.62%
• 10Y*: 9.04%

MSMLX

• 1D: 0.87%
• 1M: 2.24%
• YTD: 25.47%
• 6M: 24.22%
• 1Y: 34.43%
• 3Y*: 13.33%
• 5Y*: 8.65%
• 10Y*: 11.73%

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

VEMAX vs. MSMLX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEMAX Vanguard Emerging Markets Stock Index Fund Admiral Shares	13.97%	24.76%	11.34%	8.82%	-17.79%	0.85%	15.24%	20.29%	-14.59%	31.37%
MSMLX Matthews Emerging Markets Small Companies Fund	25.47%	13.50%	-6.10%	20.04%	-16.78%	26.40%	43.69%	17.38%	-17.80%	30.43%

Correlation

The correlation between VEMAX and MSMLX is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (10Y) Calculated over the trailing 10-year period	0.78
Correlation (All Time) Calculated using the full available price history since Sep 16, 2008	0.78

The correlation between VEMAX and MSMLX has been stable across timeframes, ranging from 0.75 to 0.79 - a consistent structural relationship.

Return for Risk

VEMAX vs. MSMLX — Risk / Return Rank

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

VEMAX

VEMAX Risk / Return Rank: 59
VEMAX Sharpe Ratio Rank: 62
VEMAX Sortino Ratio Rank: 57
VEMAX Omega Ratio Rank: 58
VEMAX Calmar Ratio Rank: 61
VEMAX Martin Ratio Rank: 56

MSMLX

MSMLX Risk / Return Rank: 46
MSMLX Sharpe Ratio Rank: 45
MSMLX Sortino Ratio Rank: 42
MSMLX Omega Ratio Rank: 43
MSMLX Calmar Ratio Rank: 56
MSMLX Martin Ratio Rank: 45

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.

VEMAX vs. MSMLX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX) and Matthews Emerging Markets Small Companies Fund (MSMLX). 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.

	VEMAX	MSMLX	Difference
Sharpe ratio: Return per unit of total volatility	2.31	1.96	+0.36
Sortino ratio: Return per unit of downside risk	3.18	2.70	+0.49
Omega ratio: Gain probability vs. loss probability	1.42	1.35	+0.07
Calmar ratio: Return relative to maximum drawdown	3.00	2.85	+0.14
Martin ratio: Return relative to average drawdown	11.18	9.39	+1.79
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEMAX vs. MSMLX - Sharpe Ratio Comparison

The current VEMAX Sharpe Ratio is 2.31, which is comparable to the MSMLX Sharpe Ratio of 1.96. The chart below compares the historical Sharpe Ratios of VEMAX and MSMLX, 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

	VEMAX	MSMLX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.31	1.96	+0.36
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.37	0.49	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	0.69	-0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.30	0.65	-0.36

Drawdowns

VEMAX vs. MSMLX - Drawdown Comparison

The maximum VEMAX drawdown since its inception was -66.45%, which is greater than MSMLX's maximum drawdown of -36.40%. Use the drawdown chart below to compare losses from any high point for VEMAX and MSMLX.

Drawdown Indicators

	VEMAX	MSMLX	Difference
Max Drawdown Largest peak-to-trough decline	-66.45%	-36.40%	-30.05%
Max Drawdown (1Y) Largest decline over 1 year	-11.05%	-12.89%	+1.84%
Max Drawdown (3Y) Largest decline over 3 years	-15.78%	-22.62%	+6.84%
Max Drawdown (5Y) Largest decline over 5 years	-32.55%	-28.00%	-4.55%
Max Drawdown (10Y) Largest decline over 10 years	-36.11%	-34.33%	-1.78%
Current Drawdown Current decline from peak	0.00%	-1.49%	+1.49%
Average Drawdown Average peak-to-trough decline	-16.12%	-9.24%	-6.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.96%	3.86%	-0.90%

Volatility

VEMAX vs. MSMLX - Volatility Comparison

The current volatility for Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX) is 5.01%, while Matthews Emerging Markets Small Companies Fund (MSMLX) has a volatility of 7.17%. This indicates that VEMAX experiences smaller price fluctuations and is considered to be less risky than MSMLX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEMAX	MSMLX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.01%	7.17%	-2.16%
Volatility (6M) Calculated over the trailing 6-month period	11.80%	15.84%	-4.04%
Volatility (1Y) Calculated over the trailing 1-year period	14.31%	18.81%	-4.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.38%	17.74%	-2.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.46%	17.18%	-0.72%

VEMAX vs. MSMLX - Expense Ratio Comparison

VEMAX has a 0.14% expense ratio, which is lower than MSMLX's 1.37% expense ratio.

Dividends

VEMAX vs. MSMLX - Dividend Comparison

VEMAX's dividend yield for the trailing twelve months is around 2.34%, more than MSMLX's 1.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSMLX Matthews Emerging Markets Small Companies Fund	1.19%	1.50%	3.95%	8.36%	8.04%	9.18%	0.28%	0.51%	21.31%	8.12%	0.43%	0.13%
VEMAX Vanguard Emerging Markets Stock Index Fund Admiral Shares	2.34%	2.74%	3.13%	3.47%	4.05%	2.57%	1.87%	3.20%	2.85%	2.31%	2.51%	3.25%

Frequently Asked Questions

Can I hold both VEMAX and MSMLX in my portfolio?

VEMAX and MSMLX have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VEMAX or MSMLX?

MSMLX has higher volatility (7.17%) compared to VEMAX (5.01%). In terms of maximum drawdown, VEMAX dropped -66.45% vs MSMLX's -36.40%.

Which has better risk-adjusted returns?

VEMAX currently has the higher Sharpe Ratio (2.31 vs 1.96), 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.