VFSAX vs. VBIRX

Last updated Jun 9, 2026

VFSAX (Vanguard FTSE All-World ex-US Small-Cap Index Fund Admiral Shares) and VBIRX (Vanguard Short-Term Bond Index Fund Admiral Shares) are both mutual funds - VFSAX is a Foreign Small & Mid Cap Equities fund managed by Vanguard, while VBIRX is a Total Bond Market fund managed by Vanguard. Over the past 5 years, VFSAX returned 5.21%/yr vs 1.55%/yr for VBIRX. At a 0.12 correlation, their price movements are largely independent. VFSAX charges 0.16%/yr vs 0.07%/yr for VBIRX.

Performance

VFSAX vs. VBIRX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US Small-Cap Index Fund Admiral Shares (VFSAX) and Vanguard Short-Term Bond Index Fund Admiral Shares (VBIRX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFSAX achieves a 7.80% return, which is significantly higher than VBIRX's 0.01% return.

VFSAX

• 1D: -2.93%
• 1M: -4.48%
• YTD: 7.80%
• 6M: 10.63%
• 1Y: 22.84%
• 3Y*: 15.67%
• 5Y*: 5.21%
• 10Y*: —

VBIRX

• 1D: -0.29%
• 1M: -0.34%
• YTD: 0.01%
• 6M: 0.54%
• 1Y: 3.63%
• 3Y*: 4.32%
• 5Y*: 1.55%
• 10Y*: 1.89%

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

VFSAX vs. VBIRX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
VFSAX Vanguard FTSE All-World ex-US Small-Cap Index Fund Admiral Shares	7.80%	29.89%	2.58%	15.13%	-21.30%	12.68%	11.90%	13.47%
VBIRX Vanguard Short-Term Bond Index Fund Admiral Shares	0.01%	6.09%	3.75%	4.87%	-5.63%	-1.20%	4.69%	4.36%

Correlation

The correlation between VFSAX and VBIRX is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (3Y) Calculated over the trailing 3-year period	0.26
Correlation (5Y) Calculated over the trailing 5-year period	0.21
Correlation (All Time) Calculated using the full available price history since Feb 8, 2019	0.12

The correlation between VFSAX and VBIRX shifts across timeframes, from 0.12 (all time) to 0.31 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VFSAX vs. VBIRX — Risk / Return Rank

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

VFSAX

VFSAX Risk / Return Rank: 35
VFSAX Sharpe Ratio Rank: 37
VFSAX Sortino Ratio Rank: 34
VFSAX Omega Ratio Rank: 37
VFSAX Calmar Ratio Rank: 32
VFSAX Martin Ratio Rank: 36

VBIRX

VBIRX Risk / Return Rank: 34
VBIRX Sharpe Ratio Rank: 30
VBIRX Sortino Ratio Rank: 38
VBIRX Omega Ratio Rank: 33
VBIRX Calmar Ratio Rank: 36
VBIRX Martin Ratio Rank: 32

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.

VFSAX vs. VBIRX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US Small-Cap Index Fund Admiral Shares (VFSAX) and Vanguard Short-Term Bond Index Fund Admiral Shares (VBIRX). 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.

	VFSAX	VBIRX	Difference
Sharpe ratio: Return per unit of total volatility	1.68	1.47	+0.21
Sortino ratio: Return per unit of downside risk	2.30	2.46	-0.16
Omega ratio: Gain probability vs. loss probability	1.31	1.29	+0.02
Calmar ratio: Return relative to maximum drawdown	2.01	2.17	-0.16
Martin ratio: Return relative to average drawdown	7.67	6.96	+0.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFSAX vs. VBIRX - Sharpe Ratio Comparison

The current VFSAX Sharpe Ratio is 1.68, which is comparable to the VBIRX Sharpe Ratio of 1.47. The chart below compares the historical Sharpe Ratios of VFSAX and VBIRX, 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

	VFSAX	VBIRX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.68	1.47	+0.21
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.35	0.52	-0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.79	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.97	-0.45

Drawdowns

VFSAX vs. VBIRX - Drawdown Comparison

The maximum VFSAX drawdown since its inception was -39.86%, which is greater than VBIRX's maximum drawdown of -8.69%. Use the drawdown chart below to compare losses from any high point for VFSAX and VBIRX.

Drawdown Indicators

	VFSAX	VBIRX	Difference
Max Drawdown Largest peak-to-trough decline	-39.86%	-8.69%	-31.17%
Max Drawdown (1Y) Largest decline over 1 year	-11.48%	-1.54%	-9.94%
Max Drawdown (3Y) Largest decline over 3 years	-14.73%	-1.55%	-13.18%
Max Drawdown (5Y) Largest decline over 5 years	-33.81%	-8.64%	-25.17%
Max Drawdown (10Y) Largest decline over 10 years	—	-8.69%	—
Current Drawdown Current decline from peak	-4.55%	-0.92%	-3.63%
Average Drawdown Average peak-to-trough decline	-9.24%	-0.99%	-8.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.00%	0.48%	+2.52%

Volatility

VFSAX vs. VBIRX - Volatility Comparison

Vanguard FTSE All-World ex-US Small-Cap Index Fund Admiral Shares (VFSAX) has a higher volatility of 4.85% compared to Vanguard Short-Term Bond Index Fund Admiral Shares (VBIRX) at 0.73%. This indicates that VFSAX's price experiences larger fluctuations and is considered to be riskier than VBIRX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFSAX	VBIRX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.85%	0.73%	+4.12%
Volatility (6M) Calculated over the trailing 6-month period	11.62%	1.61%	+10.01%
Volatility (1Y) Calculated over the trailing 1-year period	13.71%	2.27%	+11.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.09%	2.97%	+12.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.05%	2.40%	+14.65%

VFSAX vs. VBIRX - Expense Ratio Comparison

VFSAX has a 0.16% expense ratio, which is higher than VBIRX's 0.07% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VFSAX vs. VBIRX - Dividend Comparison

VFSAX's dividend yield for the trailing twelve months is around 3.07%, less than VBIRX's 4.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBIRX Vanguard Short-Term Bond Index Fund Admiral Shares	4.00%	3.83%	3.37%	2.41%	1.46%	1.22%	1.77%	2.24%	2.03%	1.66%	1.50%	1.41%
VFSAX Vanguard FTSE All-World ex-US Small-Cap Index Fund Admiral Shares	3.07%	3.31%	3.36%	3.06%	2.22%	2.67%	1.85%	3.19%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VFSAX and VBIRX in my portfolio?

VFSAX and VBIRX have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFSAX or VBIRX?

VFSAX has higher volatility (4.85%) compared to VBIRX (0.73%). In terms of maximum drawdown, VFSAX dropped -39.86% vs VBIRX's -8.69%.

Which has better risk-adjusted returns?

VFSAX currently has the higher Sharpe Ratio (1.68 vs 1.47), 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.