VFAIX vs. VTIAX

Last updated Jun 24, 2026

VFAIX (Vanguard Financials Index Fund Admiral Shares) and VTIAX (Vanguard Total International Stock Index Fund Admiral Shares) are both mutual funds - VFAIX is a Financials Equities fund tracking the MSCI US Investable Market Financials 25/50 Index, while VTIAX is a Foreign Large Cap Equities fund tracking the FTSE Global All Cap ex US Index. Both are passively managed. Over the past 10 years, VFAIX returned 13.53%/yr vs 10.47%/yr for VTIAX. A 0.69 correlation means they provide meaningful diversification when combined. Both charge a 0.09% expense ratio.

Performance

VFAIX vs. VTIAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Financials Index Fund Admiral Shares (VFAIX) and Vanguard Total International Stock Index Fund Admiral Shares (VTIAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFAIX achieves a -0.70% return, which is significantly lower than VTIAX's 15.81% return. Over the past 10 years, VFAIX has outperformed VTIAX with an annualized return of 13.53%, while VTIAX has yielded a comparatively lower 10.47% annualized return.

VFAIX

• 1D: 0.52%
• 1M: 3.73%
• YTD: -0.70%
• 6M: -2.07%
• 1Y: 8.46%
• 3Y*: 20.82%
• 5Y*: 10.43%
• 10Y*: 13.53%

VTIAX

• 1D: 0.17%
• 1M: 3.27%
• YTD: 15.81%
• 6M: 15.70%
• 1Y: 33.45%
• 3Y*: 20.02%
• 5Y*: 9.14%
• 10Y*: 10.47%

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

VFAIX vs. VTIAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFAIX Vanguard Financials Index Fund Admiral Shares	-0.70%	14.90%	30.46%	14.07%	-12.26%	36.27%	-2.15%	31.63%	-13.47%	20.05%
VTIAX Vanguard Total International Stock Index Fund Admiral Shares	15.81%	32.18%	5.34%	15.28%	-16.02%	8.59%	11.27%	21.52%	-14.46%	27.54%

Correlation

The correlation between VFAIX and VTIAX is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.45
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since Nov 29, 2010	0.69

Over the past year, the correlation between VFAIX and VTIAX has dropped to 0.45 - well below their long-term average of 0.69, suggesting their price drivers have been diverging.

VFAIX vs. VTIAX - Sectors Allocation Comparison

Sectors	VFAIX	VTIAX
Financial Services	96.8%	22.3%
Technology	2.1%	18.1%
Real Estate	0.8%	2.6%
Industrials	0.2%	16.1%
Healthcare	0.1%	7.1%
Communication Services	0.0%	4.4%
Consumer Cyclical	0.0%	8.4%
Basic Materials	-	7.6%
Consumer Defensive	-	5.0%
Energy	-	5.2%
Utilities	-	3.2%

Return for Risk

VFAIX vs. VTIAX — Risk / Return Rank

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

VFAIX

VFAIX Risk / Return Rank: 8
VFAIX Sharpe Ratio Rank: 8
VFAIX Sortino Ratio Rank: 8
VFAIX Omega Ratio Rank: 8
VFAIX Calmar Ratio Rank: 7
VFAIX Martin Ratio Rank: 7

VTIAX

VTIAX Risk / Return Rank: 68
VTIAX Sharpe Ratio Rank: 73
VTIAX Sortino Ratio Rank: 65
VTIAX Omega Ratio Rank: 71
VTIAX Calmar Ratio Rank: 69
VTIAX Martin Ratio Rank: 64

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.

VFAIX vs. VTIAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials Index Fund Admiral Shares (VFAIX) and Vanguard Total International Stock Index Fund Admiral Shares (VTIAX). 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.

	VFAIX	VTIAX	Difference
Sharpe ratio: Return per unit of total volatility	0.66	2.28	-1.62
Sortino ratio: Return per unit of downside risk	0.98	3.07	-2.08
Omega ratio: Gain probability vs. loss probability	1.12	1.43	-0.30
Calmar ratio: Return relative to maximum drawdown	0.67	3.05	-2.38
Martin ratio: Return relative to average drawdown	1.74	11.84	-10.11

VFAIX vs. VTIAX - Sharpe Ratio Comparison

The current VFAIX Sharpe Ratio is 0.66, which is lower than the VTIAX Sharpe Ratio of 2.28. The chart below compares the historical Sharpe Ratios of VFAIX and VTIAX, 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

VFAIX vs. VTIAX - Drawdown Comparison

The maximum VFAIX drawdown since its inception was -78.64%, which is greater than VTIAX's maximum drawdown of -35.83%. Use the drawdown chart below to compare losses from any high point for VFAIX and VTIAX.

Drawdown Indicators

	VFAIX	VTIAX	Difference
Max Drawdown Largest peak-to-trough decline	-78.64%	-35.83%	-42.81%
Max Drawdown (1Y) Largest decline over 1 year	-14.72%	-11.28%	-3.44%
Max Drawdown (3Y) Largest decline over 3 years	-17.31%	-13.13%	-4.18%
Max Drawdown (5Y) Largest decline over 5 years	-25.71%	-29.52%	+3.81%
Max Drawdown (10Y) Largest decline over 10 years	-44.37%	-35.83%	-8.54%
Current Drawdown Current decline from peak	-3.73%	0.00%	-3.73%
Average Drawdown Average peak-to-trough decline	-18.57%	-8.06%	-10.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.66%	2.90%	+2.76%

Volatility

VFAIX vs. VTIAX - Volatility Comparison

The current volatility for Vanguard Financials Index Fund Admiral Shares (VFAIX) is 4.21%, while Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) has a volatility of 6.02%. This indicates that VFAIX experiences smaller price fluctuations and is considered to be less risky than VTIAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFAIX	VTIAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.21%	6.02%	-1.81%
Volatility (6M) Calculated over the trailing 6-month period	11.38%	13.03%	-1.65%
Volatility (1Y) Calculated over the trailing 1-year period	14.96%	15.10%	-0.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.29%	15.21%	+4.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.62%	15.95%	+6.67%

VFAIX vs. VTIAX - Expense Ratio Comparison

Both VFAIX and VTIAX have an expense ratio of 0.09%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VFAIX vs. VTIAX - Dividend Comparison

VFAIX's dividend yield for the trailing twelve months is around 1.47%, less than VTIAX's 2.48% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFAIX Vanguard Financials Index Fund Admiral Shares	1.47%	1.56%	1.75%	2.08%	2.31%	2.62%	2.21%	2.17%	2.30%	1.54%	1.64%	2.00%
VTIAX Vanguard Total International Stock Index Fund Admiral Shares	2.48%	3.15%	3.33%	3.22%	3.04%	3.05%	2.10%	3.04%	3.16%	2.73%	2.93%	2.84%

Frequently Asked Questions

Can I hold both VFAIX and VTIAX in my portfolio?

VFAIX and VTIAX have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFAIX or VTIAX?

VTIAX has higher volatility (6.02%) compared to VFAIX (4.21%). In terms of maximum drawdown, VFAIX dropped -78.64% vs VTIAX's -35.83%.

Which has better risk-adjusted returns?

VTIAX currently has the higher Sharpe Ratio (2.28 vs 0.66), 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.