VFSNX vs. VT

Last updated Jul 11, 2026

VFSNX (Vanguard FTSE All-World ex-US Small-Cap Index Fund Institutional Shares) and VT (Vanguard Total World Stock ETF) are both funds - VFSNX is a Foreign Small & Mid Cap Equities fund managed by Vanguard, while VT is a Global Equities fund tracking the FTSE Global All Cap Index. Over the past 10 years, VFSNX returned 8.01%/yr vs 12.58%/yr for VT. Their correlation of 0.88 suggests significant overlap in exposure. VFSNX charges 0.11%/yr vs 0.06%/yr for VT.

Performance

VFSNX vs. VT - 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 Institutional Shares (VFSNX) and Vanguard Total World Stock ETF (VT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFSNX achieves a 7.40% return, which is significantly lower than VT's 12.41% return. Over the past 10 years, VFSNX has underperformed VT with an annualized return of 8.01%, while VT has yielded a comparatively higher 12.58% annualized return.

VFSNX

• 1D: 0.73%
• 1M: -2.15%
• 6M: 4.34%
• YTD: 7.40%
• 1Y: 17.32%
• 3Y*: 15.19%
• 5Y*: 5.35%
• 10Y*: 8.01%

VT

• 1D: 0.40%
• 1M: 1.22%
• 6M: 9.67%
• YTD: 12.41%
• 1Y: 24.11%
• 3Y*: 19.87%
• 5Y*: 10.78%
• 10Y*: 12.58%

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

VFSNX vs. VT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFSNX Vanguard FTSE All-World ex-US Small-Cap Index Fund Institutional Shares	7.40%	29.97%	2.63%	15.18%	-21.26%	12.74%	11.92%	21.72%	-18.46%	30.30%
VT Vanguard Total World Stock ETF	12.41%	22.43%	16.49%	22.02%	-18.00%	18.27%	16.59%	26.81%	-9.76%	24.50%

Correlation

The correlation between VFSNX and VT is 0.86, 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	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Mar 20, 2009	0.88

The correlation between VFSNX and VT has been stable across timeframes, ranging from 0.85 to 0.88 - a consistent structural relationship.

Return for Risk

VFSNX vs. VT — Risk / Return Rank

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

VFSNX

VFSNX Risk / Return Rank: 29
VFSNX Sharpe Ratio Rank: 30
VFSNX Sortino Ratio Rank: 28
VFSNX Omega Ratio Rank: 31
VFSNX Calmar Ratio Rank: 27
VFSNX Martin Ratio Rank: 30

VT

VT Risk / Return Rank: 66
VT Sharpe Ratio Rank: 66
VT Sortino Ratio Rank: 65
VT Omega Ratio Rank: 66
VT Calmar Ratio Rank: 61
VT Martin Ratio Rank: 71

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.

VFSNX vs. VT - 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 Institutional Shares (VFSNX) and Vanguard Total World Stock ETF (VT). 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.

	VFSNX	VT	Difference
Sharpe ratio: Return per unit of total volatility	1.19	1.73	-0.54
Sortino ratio: Return per unit of downside risk	1.69	2.41	-0.73
Omega ratio: Gain probability vs. loss probability	1.22	1.31	-0.09
Calmar ratio: Return relative to maximum drawdown	1.50	2.44	-0.94
Martin ratio: Return relative to average drawdown	5.28	10.41	-5.12

VFSNX vs. VT - Sharpe Ratio Comparison

The current VFSNX Sharpe Ratio is 1.19, which is lower than the VT Sharpe Ratio of 1.73. The chart below compares the historical Sharpe Ratios of VFSNX and VT, 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

VFSNX vs. VT - Drawdown Comparison

The maximum VFSNX drawdown since its inception was -43.65%, smaller than the maximum VT drawdown of -50.27%. Use the drawdown chart below to compare losses from any high point for VFSNX and VT.

Drawdown Indicators

	VFSNX	VT	Difference
Max Drawdown Largest peak-to-trough decline	-43.65%	-50.27%	+6.62%
Max Drawdown (1Y) Largest decline over 1 year	-11.47%	-9.67%	-1.80%
Max Drawdown (3Y) Largest decline over 3 years	-14.70%	-16.51%	+1.81%
Max Drawdown (5Y) Largest decline over 5 years	-33.75%	-26.38%	-7.37%
Max Drawdown (10Y) Largest decline over 10 years	-43.65%	-34.24%	-9.41%
Current Drawdown Current decline from peak	-4.95%	-0.72%	-4.23%
Average Drawdown Average peak-to-trough decline	-9.45%	-6.99%	-2.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.24%	2.26%	+0.98%

Volatility

VFSNX vs. VT - Volatility Comparison

Vanguard FTSE All-World ex-US Small-Cap Index Fund Institutional Shares (VFSNX) has a higher volatility of 5.55% compared to Vanguard Total World Stock ETF (VT) at 4.90%. This indicates that VFSNX's price experiences larger fluctuations and is considered to be riskier than VT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFSNX	VT	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.55%	4.90%	+0.65%
Volatility (6M) Calculated over the trailing 6-month period	12.65%	11.41%	+1.24%
Volatility (1Y) Calculated over the trailing 1-year period	14.41%	13.61%	+0.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.22%	16.19%	-0.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.62%	17.15%	-1.53%

VFSNX vs. VT - Expense Ratio Comparison

VFSNX has a 0.11% expense ratio, which is higher than VT's 0.06% 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

VFSNX vs. VT - Dividend Comparison

VFSNX's dividend yield for the trailing twelve months is around 3.23%, more than VT's 1.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFSNX Vanguard FTSE All-World ex-US Small-Cap Index Fund Institutional Shares	3.23%	3.36%	3.41%	3.11%	2.26%	2.70%	1.90%	3.25%	2.81%	2.85%	2.93%	2.69%
VT Vanguard Total World Stock ETF	1.58%	1.82%	1.95%	2.08%	2.20%	1.82%	1.66%	2.32%	2.53%	2.11%	2.39%	2.45%

Frequently Asked Questions

Can I hold both VFSNX and VT in my portfolio?

VFSNX and VT have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFSNX or VT?

VFSNX has higher volatility (5.55%) compared to VT (4.90%). In terms of maximum drawdown, VFSNX dropped -43.65% vs VT's -50.27%.

Which has better risk-adjusted returns?

VT currently has the higher Sharpe Ratio (1.73 vs 1.19), 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.