VFIAX vs. VEIRX

Last updated Jun 25, 2026

VFIAX (Vanguard 500 Index Fund Admiral Shares) and VEIRX (Vanguard Equity Income Fund Admiral Shares) are both mutual funds - VFIAX is a S&P 500 fund tracking the S&P 500 Index, while VEIRX is a Large Cap Value Equities fund actively managed by Vanguard. VFIAX is passively managed, while VEIRX is actively managed. Over the past 10 years, VFIAX returned 15.59%/yr vs 12.01%/yr for VEIRX. Their correlation of 0.92 suggests significant overlap in exposure. VFIAX charges 0.04%/yr vs 0.19%/yr for VEIRX.

Performance

VFIAX vs. VEIRX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard 500 Index Fund Admiral Shares (VFIAX) and Vanguard Equity Income Fund Admiral Shares (VEIRX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with VFIAX having a 8.19% return and VEIRX slightly lower at 8.14%. Over the past 10 years, VFIAX has outperformed VEIRX with an annualized return of 15.59%, while VEIRX has yielded a comparatively lower 12.01% annualized return.

VFIAX

• 1D: -1.44%
• 1M: -1.34%
• YTD: 8.19%
• 6M: 6.86%
• 1Y: 22.31%
• 3Y*: 20.77%
• 5Y*: 13.11%
• 10Y*: 15.59%

VEIRX

• 1D: -0.03%
• 1M: -0.43%
• YTD: 8.14%
• 6M: 7.08%
• 1Y: 19.59%
• 3Y*: 16.90%
• 5Y*: 11.29%
• 10Y*: 12.01%

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

VFIAX vs. VEIRX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFIAX Vanguard 500 Index Fund Admiral Shares	8.19%	17.83%	24.97%	26.24%	-18.16%	28.65%	18.32%	31.46%	-4.45%	21.78%
VEIRX Vanguard Equity Income Fund Admiral Shares	8.14%	17.25%	14.91%	7.76%	-0.08%	25.49%	3.08%	25.34%	-5.68%	17.68%

Correlation

The correlation between VFIAX and VEIRX is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Aug 13, 2001	0.92

Over the past year, the correlation between VFIAX and VEIRX has dropped to 0.66 - well below their long-term average of 0.92, suggesting their price drivers have been diverging.

VFIAX vs. VEIRX - Sectors Allocation Comparison

Sectors	VFIAX	VEIRX
Technology	39.1%	13.0%
Financial Services	10.9%	20.5%
Communication Services	10.5%	2.9%
Consumer Cyclical	9.8%	6.0%
Healthcare	8.3%	14.8%
Industrials	7.6%	10.6%
Consumer Defensive	4.5%	9.4%
Energy	3.2%	8.3%
Utilities	2.5%	7.0%
Real Estate	1.8%	1.9%
Basic Materials	1.7%	3.4%

Return for Risk

VFIAX vs. VEIRX — Risk / Return Rank

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

VFIAX

VFIAX Risk / Return Rank: 52
VFIAX Sharpe Ratio Rank: 49
VFIAX Sortino Ratio Rank: 44
VFIAX Omega Ratio Rank: 46
VFIAX Calmar Ratio Rank: 53
VFIAX Martin Ratio Rank: 66

VEIRX

VEIRX Risk / Return Rank: 55
VEIRX Sharpe Ratio Rank: 53
VEIRX Sortino Ratio Rank: 54
VEIRX Omega Ratio Rank: 51
VEIRX Calmar Ratio Rank: 62
VEIRX Martin Ratio Rank: 56

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.

VFIAX vs. VEIRX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard 500 Index Fund Admiral Shares (VFIAX) and Vanguard Equity Income Fund Admiral Shares (VEIRX). 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.

	VFIAX	VEIRX	Difference
Sharpe ratio: Return per unit of total volatility	1.90	1.98	-0.08
Sortino ratio: Return per unit of downside risk	2.58	2.83	-0.24
Omega ratio: Gain probability vs. loss probability	1.34	1.36	-0.01
Calmar ratio: Return relative to maximum drawdown	2.67	2.87	-0.20
Martin ratio: Return relative to average drawdown	12.00	10.65	+1.35

VFIAX vs. VEIRX - Sharpe Ratio Comparison

The current VFIAX Sharpe Ratio is 1.90, which is comparable to the VEIRX Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of VFIAX and VEIRX, 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

VFIAX vs. VEIRX - Drawdown Comparison

The maximum VFIAX drawdown since its inception was -55.20%, roughly equal to the maximum VEIRX drawdown of -54.02%. Use the drawdown chart below to compare losses from any high point for VFIAX and VEIRX.

Drawdown Indicators

	VFIAX	VEIRX	Difference
Max Drawdown Largest peak-to-trough decline	-55.20%	-54.02%	-1.18%
Max Drawdown (1Y) Largest decline over 1 year	-8.90%	-7.13%	-1.77%
Max Drawdown (3Y) Largest decline over 3 years	-18.75%	-13.36%	-5.39%
Max Drawdown (5Y) Largest decline over 5 years	-24.53%	-15.12%	-9.41%
Max Drawdown (10Y) Largest decline over 10 years	-33.83%	-35.26%	+1.43%
Current Drawdown Current decline from peak	-3.13%	-1.45%	-1.68%
Average Drawdown Average peak-to-trough decline	-9.38%	-6.49%	-2.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.98%	1.92%	+0.06%

Volatility

VFIAX vs. VEIRX - Volatility Comparison

Vanguard 500 Index Fund Admiral Shares (VFIAX) has a higher volatility of 4.90% compared to Vanguard Equity Income Fund Admiral Shares (VEIRX) at 2.81%. This indicates that VFIAX's price experiences larger fluctuations and is considered to be riskier than VEIRX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFIAX	VEIRX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.90%	2.81%	+2.09%
Volatility (6M) Calculated over the trailing 6-month period	9.93%	7.60%	+2.33%
Volatility (1Y) Calculated over the trailing 1-year period	12.57%	10.38%	+2.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.00%	13.89%	+3.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.08%	16.28%	+1.80%

VFIAX vs. VEIRX - Expense Ratio Comparison

VFIAX has a 0.04% expense ratio, which is lower than VEIRX's 0.19% 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

VFIAX vs. VEIRX - Dividend Comparison

VFIAX's dividend yield for the trailing twelve months is around 1.05%, less than VEIRX's 10.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEIRX Vanguard Equity Income Fund Admiral Shares	10.26%	11.03%	9.83%	7.96%	8.79%	7.71%	2.86%	4.45%	10.98%	3.04%	3.87%	6.48%
VFIAX Vanguard 500 Index Fund Admiral Shares	1.05%	1.12%	1.24%	1.45%	1.68%	1.24%	1.53%	1.87%	2.05%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both VFIAX and VEIRX in my portfolio?

VFIAX and VEIRX have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFIAX or VEIRX?

VFIAX has higher volatility (4.90%) compared to VEIRX (2.81%). In terms of maximum drawdown, VFIAX dropped -55.20% vs VEIRX's -54.02%.

Which has better risk-adjusted returns?

VEIRX currently has the higher Sharpe Ratio (1.98 vs 1.90), 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.