VFWAX vs. VSIAX

Last updated Jun 13, 2026

VFWAX (Vanguard FTSE All-World ex-US Index Fund Admiral Shares) and VSIAX (Vanguard Small-Cap Value Index Fund Admiral Shares) are both mutual funds - VFWAX is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index, while VSIAX is a Small Cap Value Equities fund tracking the CRSP US Small Cap Value Index. Both are passively managed. Over the past 10 years, VFWAX returned 10.14%/yr vs 10.84%/yr for VSIAX. A 0.74 correlation means they provide meaningful diversification when combined. VFWAX charges 0.11%/yr vs 0.07%/yr for VSIAX.

Performance

VFWAX vs. VSIAX - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with VFWAX having a 13.24% return and VSIAX slightly higher at 13.57%. Over the past 10 years, VFWAX has underperformed VSIAX with an annualized return of 10.14%, while VSIAX has yielded a comparatively higher 10.84% annualized return.

VFWAX

• 1D: 3.19%
• 1M: 0.27%
• YTD: 13.24%
• 6M: 15.08%
• 1Y: 29.72%
• 3Y*: 18.68%
• 5Y*: 8.37%
• 10Y*: 10.14%

VSIAX

• 1D: 2.03%
• 1M: 3.61%
• YTD: 13.57%
• 6M: 11.91%
• 1Y: 28.83%
• 3Y*: 16.20%
• 5Y*: 8.17%
• 10Y*: 10.84%

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

VFWAX vs. VSIAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFWAX Vanguard FTSE All-World ex-US Index Fund Admiral Shares	13.24%	32.32%	5.43%	15.55%	-15.51%	8.08%	11.34%	21.53%	-13.97%	27.20%
VSIAX Vanguard Small-Cap Value Index Fund Admiral Shares	13.57%	9.09%	11.34%	17.06%	-9.31%	28.10%	5.80%	22.76%	-12.24%	11.80%

Correlation

The correlation between VFWAX and VSIAX is 0.69, 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	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.71
Correlation (All Time) Calculated using the full available price history since Sep 27, 2011	0.74

The correlation between VFWAX and VSIAX has been stable across timeframes, ranging from 0.69 to 0.74 - a consistent structural relationship.

VFWAX vs. VSIAX - Sectors Allocation Comparison

Sectors	VFWAX	VSIAX
Financial Services	23.3%	17.6%
Technology	18.5%	10.6%
Industrials	15.7%	18.1%
Consumer Cyclical	8.2%	12.4%
Basic Materials	7.1%	6.3%
Healthcare	7.1%	7.9%
Energy	5.2%	5.2%
Consumer Defensive	5.1%	4.0%
Communication Services	4.6%	2.5%
Utilities	3.2%	4.8%
Real Estate	2.0%	10.1%

Return for Risk

VFWAX vs. VSIAX — Risk / Return Rank

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

VFWAX

VFWAX Risk / Return Rank: 65
VFWAX Sharpe Ratio Rank: 67
VFWAX Sortino Ratio Rank: 63
VFWAX Omega Ratio Rank: 67
VFWAX Calmar Ratio Rank: 66
VFWAX Martin Ratio Rank: 63

VSIAX

VSIAX Risk / Return Rank: 64
VSIAX Sharpe Ratio Rank: 58
VSIAX Sortino Ratio Rank: 63
VSIAX Omega Ratio Rank: 50
VSIAX Calmar Ratio Rank: 80
VSIAX Martin Ratio Rank: 72

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.

VFWAX vs. VSIAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX) and Vanguard Small-Cap Value Index Fund Admiral Shares (VSIAX). 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.

	VFWAX	VSIAX	Difference
Sharpe ratio: Return per unit of total volatility	1.88	1.74	+0.14
Sortino ratio: Return per unit of downside risk	2.57	2.57	0.00
Omega ratio: Gain probability vs. loss probability	1.35	1.30	+0.05
Calmar ratio: Return relative to maximum drawdown	2.54	3.02	-0.48
Martin ratio: Return relative to average drawdown	9.81	10.71	-0.90

VFWAX vs. VSIAX - Sharpe Ratio Comparison

The current VFWAX Sharpe Ratio is 1.88, which is comparable to the VSIAX Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of VFWAX and VSIAX, 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

VFWAX vs. VSIAX - Drawdown Comparison

The maximum VFWAX drawdown since its inception was -34.93%, smaller than the maximum VSIAX drawdown of -45.39%. Use the drawdown chart below to compare losses from any high point for VFWAX and VSIAX.

Drawdown Indicators

	VFWAX	VSIAX	Difference
Max Drawdown Largest peak-to-trough decline	-34.93%	-45.39%	+10.46%
Max Drawdown (1Y) Largest decline over 1 year	-11.34%	-8.87%	-2.47%
Max Drawdown (3Y) Largest decline over 3 years	-13.25%	-24.09%	+10.84%
Max Drawdown (5Y) Largest decline over 5 years	-29.30%	-24.09%	-5.21%
Max Drawdown (10Y) Largest decline over 10 years	-34.93%	-45.39%	+10.46%
Current Drawdown Current decline from peak	-2.19%	0.00%	-2.19%
Average Drawdown Average peak-to-trough decline	-7.18%	-5.48%	-1.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.93%	2.50%	+0.43%

Volatility

VFWAX vs. VSIAX - Volatility Comparison

Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX) has a higher volatility of 6.53% compared to Vanguard Small-Cap Value Index Fund Admiral Shares (VSIAX) at 4.44%. This indicates that VFWAX's price experiences larger fluctuations and is considered to be riskier than VSIAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFWAX	VSIAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.53%	4.44%	+2.09%
Volatility (6M) Calculated over the trailing 6-month period	13.17%	10.78%	+2.39%
Volatility (1Y) Calculated over the trailing 1-year period	15.30%	15.38%	-0.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.36%	19.80%	-4.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.13%	22.46%	-6.33%

VFWAX vs. VSIAX - Expense Ratio Comparison

VFWAX has a 0.11% expense ratio, which is higher than VSIAX'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

VFWAX vs. VSIAX - Dividend Comparison

VFWAX's dividend yield for the trailing twelve months is around 2.60%, more than VSIAX's 1.73% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFWAX Vanguard FTSE All-World ex-US Index Fund Admiral Shares	2.60%	3.05%	3.20%	3.28%	3.07%	3.03%	1.97%	3.07%	3.24%	2.67%	2.96%	2.95%
VSIAX Vanguard Small-Cap Value Index Fund Admiral Shares	1.73%	1.95%	1.98%	2.10%	2.03%	1.75%	1.68%	2.06%	2.35%	1.79%	1.77%	1.99%

Frequently Asked Questions

Can I hold both VFWAX and VSIAX in my portfolio?

VFWAX and VSIAX have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFWAX or VSIAX?

VFWAX has higher volatility (6.53%) compared to VSIAX (4.44%). In terms of maximum drawdown, VFWAX dropped -34.93% vs VSIAX's -45.39%.

Which has better risk-adjusted returns?

VFWAX currently has the higher Sharpe Ratio (1.88 vs 1.74), 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.