VFIAX vs. VSEQX

Last updated Jun 13, 2026

VFIAX (Vanguard 500 Index Fund Admiral Shares) and VSEQX (Vanguard Strategic Equity Fund) are both mutual funds - VFIAX is a S&P 500 fund tracking the S&P 500 Index, while VSEQX is a Mid Cap Blend Equities fund managed by Vanguard. Over the past 10 years, VFIAX returned 15.40%/yr vs 13.32%/yr for VSEQX. Their correlation of 0.90 suggests significant overlap in exposure. VFIAX charges 0.04%/yr vs 0.17%/yr for VSEQX.

Performance

VFIAX vs. VSEQX - Performance Comparison

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

Returns By Period

In the year-to-date period, VFIAX achieves a 8.58% return, which is significantly lower than VSEQX's 16.18% return. Over the past 10 years, VFIAX has outperformed VSEQX with an annualized return of 15.40%, while VSEQX has yielded a comparatively lower 13.32% annualized return.

VFIAX

• 1D: 1.75%
• 1M: -0.55%
• YTD: 8.58%
• 6M: 8.92%
• 1Y: 23.76%
• 3Y*: 21.03%
• 5Y*: 13.30%
• 10Y*: 15.40%

VSEQX

• 1D: 2.25%
• 1M: 3.52%
• YTD: 16.18%
• 6M: 14.88%
• 1Y: 34.58%
• 3Y*: 20.51%
• 5Y*: 11.68%
• 10Y*: 13.32%

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

VFIAX vs. VSEQX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFIAX Vanguard 500 Index Fund Admiral Shares	8.58%	17.83%	24.97%	26.24%	-18.16%	28.65%	18.32%	31.46%	-4.45%	21.78%
VSEQX Vanguard Strategic Equity Fund	16.18%	15.32%	16.67%	19.31%	-11.90%	30.83%	10.26%	26.76%	-11.86%	12.36%

Correlation

The correlation between VFIAX and VSEQX is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since Nov 13, 2000	0.90

The correlation between VFIAX and VSEQX has been stable across timeframes, ranging from 0.81 to 0.90 - a consistent structural relationship.

VFIAX vs. VSEQX - Sectors Allocation Comparison

Sectors	VFIAX	VSEQX
Technology	35.7%	17.5%
Financial Services	11.6%	15.2%
Communication Services	11.3%	3.8%
Consumer Cyclical	10.2%	10.3%
Healthcare	8.5%	11.0%
Industrials	8.3%	16.6%
Consumer Defensive	4.9%	3.6%
Energy	3.5%	5.5%
Utilities	2.4%	4.9%
Real Estate	1.9%	6.7%
Basic Materials	1.8%	4.9%

Return for Risk

VFIAX vs. VSEQX — Risk / Return Rank

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

VFIAX

VFIAX Risk / Return Rank: 73
VFIAX Sharpe Ratio Rank: 72
VFIAX Sortino Ratio Rank: 68
VFIAX Omega Ratio Rank: 69
VFIAX Calmar Ratio Rank: 73
VFIAX Martin Ratio Rank: 83

VSEQX

VSEQX Risk / Return Rank: 85
VSEQX Sharpe Ratio Rank: 82
VSEQX Sortino Ratio Rank: 80
VSEQX Omega Ratio Rank: 75
VSEQX Calmar Ratio Rank: 94
VSEQX Martin Ratio Rank: 94

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. VSEQX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard 500 Index Fund Admiral Shares (VFIAX) and Vanguard Strategic Equity Fund (VSEQX). 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	VSEQX	Difference
Sharpe ratio: Return per unit of total volatility	1.97	2.26	-0.30
Sortino ratio: Return per unit of downside risk	2.67	3.14	-0.47
Omega ratio: Gain probability vs. loss probability	1.36	1.39	-0.03
Calmar ratio: Return relative to maximum drawdown	2.73	4.58	-1.84
Martin ratio: Return relative to average drawdown	12.43	17.54	-5.12

VFIAX vs. VSEQX - Sharpe Ratio Comparison

The current VFIAX Sharpe Ratio is 1.97, which is comparable to the VSEQX Sharpe Ratio of 2.26. The chart below compares the historical Sharpe Ratios of VFIAX and VSEQX, 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. VSEQX - Drawdown Comparison

The maximum VFIAX drawdown since its inception was -55.20%, smaller than the maximum VSEQX drawdown of -63.55%. Use the drawdown chart below to compare losses from any high point for VFIAX and VSEQX.

Drawdown Indicators

	VFIAX	VSEQX	Difference
Max Drawdown Largest peak-to-trough decline	-55.20%	-63.55%	+8.35%
Max Drawdown (1Y) Largest decline over 1 year	-8.90%	-7.60%	-1.30%
Max Drawdown (3Y) Largest decline over 3 years	-18.75%	-24.73%	+5.98%
Max Drawdown (5Y) Largest decline over 5 years	-24.53%	-24.73%	+0.20%
Max Drawdown (10Y) Largest decline over 10 years	-33.83%	-44.08%	+10.25%
Current Drawdown Current decline from peak	-2.79%	-0.07%	-2.72%
Average Drawdown Average peak-to-trough decline	-9.39%	-9.06%	-0.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.95%	1.98%	-0.03%

Volatility

VFIAX vs. VSEQX - Volatility Comparison

Vanguard 500 Index Fund Admiral Shares (VFIAX) and Vanguard Strategic Equity Fund (VSEQX) have volatilities of 4.43% and 4.65%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFIAX	VSEQX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.43%	4.65%	-0.22%
Volatility (6M) Calculated over the trailing 6-month period	9.70%	11.14%	-1.44%
Volatility (1Y) Calculated over the trailing 1-year period	12.37%	15.37%	-3.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.97%	20.00%	-3.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.10%	21.43%	-3.33%

VFIAX vs. VSEQX - Expense Ratio Comparison

VFIAX has a 0.04% expense ratio, which is lower than VSEQX's 0.17% 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. VSEQX - Dividend Comparison

VFIAX's dividend yield for the trailing twelve months is around 1.04%, less than VSEQX's 9.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFIAX Vanguard 500 Index Fund Admiral Shares	1.04%	1.12%	1.24%	1.45%	1.68%	1.24%	1.53%	1.87%	2.05%	1.78%	2.02%	2.10%
VSEQX Vanguard Strategic Equity Fund	9.60%	11.16%	11.36%	6.11%	11.77%	21.36%	1.77%	2.92%	10.34%	7.05%	3.13%	12.28%

Frequently Asked Questions

Can I hold both VFIAX and VSEQX in my portfolio?

VFIAX and VSEQX have a correlation of 0.82, 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 VSEQX?

VSEQX has higher volatility (4.65%) compared to VFIAX (4.43%). In terms of maximum drawdown, VFIAX dropped -55.20% vs VSEQX's -63.55%.

Which has better risk-adjusted returns?

VSEQX currently has the higher Sharpe Ratio (2.26 vs 1.97), 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.