VFFSX vs. VFAIX

Last updated Aug 1, 2026

VFFSX (Vanguard 500 Index Fund Institutional Select Shares) and VFAIX (Vanguard Financials Index Fund Admiral Shares) are both mutual funds - VFFSX is a Large Cap Blend Equities fund tracking the S&P 500 Index, while VFAIX is a Financials Equities fund tracking the MSCI US Investable Market Financials 25/50 Index. Both are passively managed. Over the past 5 years, VFFSX returned 12.68%/yr vs 11.54%/yr for VFAIX. Their 0.73 correlation means they have sometimes moved together and sometimes differently. VFFSX charges 0.01%/yr vs 0.09%/yr for VFAIX.

Performance

VFFSX vs. VFAIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard 500 Index Fund Institutional Select Shares (VFFSX) and Vanguard Financials Index Fund Admiral Shares (VFAIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFFSX achieves a 9.35% return, which is significantly higher than VFAIX's 5.46% return.

VFFSX

• 1D: 1.66%
• 1M: -0.56%
• 6M: 7.79%
• YTD: 9.35%
• 1Y: 20.63%
• 3Y*: 19.03%
• 5Y*: 12.68%
• 10Y*: —
• ALL TIME*: 15.22%

VFAIX

• 1D: 0.50%
• 1M: 2.34%
• 6M: 7.49%
• YTD: 5.46%
• 1Y: 13.21%
• 3Y*: 19.66%
• 5Y*: 11.54%
• 10Y*: 13.41%
• ALL TIME*: 6.81%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VFAIX Vanguard Financials Index Fund Admiral Shares	$0.00	$0.00	$0.00
VFFSX Vanguard 500 Index Fund Institutional Select Shares	$0.00	$0.00	$0.00

VFFSX vs. VFAIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFFSX Vanguard 500 Index Fund Institutional Select Shares	9.35%	17.87%	25.00%	26.28%	-18.14%	29.24%	18.35%	31.88%	-4.42%	20.80%
VFAIX Vanguard Financials Index Fund Admiral Shares	5.46%	14.90%	30.46%	14.07%	-12.26%	36.27%	-2.15%	31.63%	-13.47%	20.05%

Correlation

The correlation between VFFSX and VFAIX is 0.55, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.55
Correlation (3Y) Balances recent behavior with more history.	0.65
Correlation (5Y) Shows whether the relationship held over a longer period.	0.74
Correlation (All Time) Calculated using the full available price history since Jan 3, 2017	0.73

The correlation between VFFSX and VFAIX shifts across timeframes, from 0.55 (1 year) to 0.74 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VFFSX vs. VFAIX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VFFSX

VFFSX Risk / Return Rank: 63
VFFSX Sharpe Ratio Rank: 61
VFFSX Sortino Ratio Rank: 57
VFFSX Omega Ratio Rank: 58
VFFSX Calmar Ratio Rank: 64
VFFSX Martin Ratio Rank: 76

VFAIX

VFAIX Risk / Return Rank: 18
VFAIX Sharpe Ratio Rank: 20
VFAIX Sortino Ratio Rank: 19
VFAIX Omega Ratio Rank: 20
VFAIX Calmar Ratio Rank: 15
VFAIX Martin Ratio Rank: 14

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VFFSX vs. VFAIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard 500 Index Fund Institutional Select Shares (VFFSX) and Vanguard Financials Index Fund Admiral Shares (VFAIX). 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.

	VFFSX	VFAIX	Difference
Sharpe ratio: Return per unit of total volatility	1.43	0.70	+0.73
Sortino ratio: Return per unit of downside risk	2.00	1.03	+0.96
Omega ratio: Gain probability vs. loss probability	1.26	1.13	+0.13
Calmar ratio: Return relative to maximum drawdown	2.06	0.71	+1.35
Martin ratio: Return relative to average drawdown	8.86	1.85	+7.01

VFFSX vs. VFAIX - Sharpe Ratio Comparison

The current VFFSX Sharpe Ratio is 1.43, which is higher than the VFAIX Sharpe Ratio of 0.70. The chart below compares the historical Sharpe Ratios of VFFSX and VFAIX, 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

VFFSX vs. VFAIX - Drawdown Comparison

The maximum VFFSX drawdown since its inception was -33.82%, smaller than the maximum VFAIX drawdown of -78.64%. Use the drawdown chart below to compare losses from any high point for VFFSX and VFAIX.

Drawdown Indicators

	VFFSX	VFAIX	Difference
Max Drawdown Largest peak-to-trough decline	-33.82%	-78.64%	+44.82%
Max Drawdown (1Y) Largest decline over 1 year	-8.90%	-14.72%	+5.82%
Max Drawdown (3Y) Largest decline over 3 years	-18.75%	-17.31%	-1.44%
Max Drawdown (5Y) Largest decline over 5 years	-24.51%	-25.71%	+1.20%
Max Drawdown (10Y) Largest decline over 10 years	—	-44.37%	—
Current Drawdown Current decline from peak	-2.11%	-1.08%	-1.03%
Average Drawdown Average peak-to-trough decline	-4.46%	-18.49%	+14.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.07%	5.66%	-3.59%

Volatility

VFFSX vs. VFAIX - Volatility Comparison

The current volatility for Vanguard 500 Index Fund Institutional Select Shares (VFFSX) is 3.45%, while Vanguard Financials Index Fund Admiral Shares (VFAIX) has a volatility of 4.48%. This indicates that VFFSX experiences smaller price fluctuations and is considered to be less risky than VFAIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFFSX	VFAIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.45%	4.48%	-1.03%
Volatility (6M) Calculated over the trailing 6-month period	10.10%	11.25%	-1.15%
Volatility (1Y) Calculated over the trailing 1-year period	12.86%	15.04%	-2.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.02%	19.17%	-2.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.36%	22.54%	-4.18%

VFFSX vs. VFAIX - Expense Ratio Comparison

VFFSX has a 0.01% expense ratio, which is lower than VFAIX's 0.09% 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

VFFSX vs. VFAIX - Dividend Comparison

VFFSX's dividend yield for the trailing twelve months is around 1.09%, less than VFAIX's 1.67% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFAIX Vanguard Financials Index Fund Admiral Shares	1.67%	1.56%	1.75%	2.08%	2.31%	2.62%	2.21%	2.17%	2.30%	1.54%	1.64%	2.00%
VFFSX Vanguard 500 Index Fund Institutional Select Shares	1.09%	1.14%	1.24%	1.46%	1.70%	1.61%	1.56%	2.15%	2.09%	1.81%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VFFSX and VFAIX in my portfolio?

VFFSX and VFAIX have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFFSX or VFAIX?

VFAIX has higher volatility (4.48%) compared to VFFSX (3.45%). In terms of maximum drawdown, VFFSX dropped -33.82% vs VFAIX's -78.64%.

Which has better risk-adjusted returns?

VFFSX currently has the higher Sharpe Ratio (1.43 vs 0.70), 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.