VGE.AX vs. VSO.AX

Last updated Jul 16, 2026

VGE.AX (Vanguard FTSE Emerging Markets Shares ETF) and VSO.AX (Vanguard MSCI Australian Small Companies INDEX ETF) are both exchange-traded funds - VGE.AX is a Emerging Markets Equities fund tracking the Vanguard FTSE Emerging Markets Shares Index, while VSO.AX is a Australia Equities fund tracking the MSCI Australian Shares Small Cap Index. Both are passively managed. Over the past 10 years, VGE.AX returned 8.28%/yr vs 7.48%/yr for VSO.AX. At a 0.39 correlation, their price movements are largely independent.

Performance

VGE.AX vs. VSO.AX - Performance Comparison

The chart below illustrates the hypothetical performance of a A$10,000 investment in Vanguard FTSE Emerging Markets Shares ETF (VGE.AX) and Vanguard MSCI Australian Small Companies INDEX ETF (VSO.AX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VGE.AX achieves a 4.15% return, which is significantly higher than VSO.AX's -6.04% return. Over the past 10 years, VGE.AX has outperformed VSO.AX with an annualized return of 8.28%, while VSO.AX has yielded a comparatively lower 7.48% annualized return.

VGE.AX

• 1D: -0.09%
• 1M: -0.57%
• 6M: 1.41%
• YTD: 4.15%
• 1Y: 11.82%
• 3Y*: 13.35%
• 5Y*: 5.34%
• 10Y*: 8.28%

VSO.AX

• 1D: 0.43%
• 1M: -4.53%
• 6M: -7.75%
• YTD: -6.04%
• 1Y: 6.63%
• 3Y*: 8.30%
• 5Y*: 4.24%
• 10Y*: 7.48%

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

VGE.AX vs. VSO.AX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGE.AX Vanguard FTSE Emerging Markets Shares ETF	4.15%	16.61%	19.57%	5.11%	-12.17%	7.21%	6.36%	20.69%	-5.23%	21.54%
VSO.AX Vanguard MSCI Australian Small Companies INDEX ETF	-6.04%	24.14%	7.38%	3.70%	-13.32%	21.77%	14.75%	21.67%	-8.38%	15.95%

Correlation

The correlation between VGE.AX and VSO.AX is 0.50, 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	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (5Y) Calculated over the trailing 5-year period	0.40
Correlation (10Y) Calculated over the trailing 10-year period	0.40
Correlation (All Time) Calculated using the full available price history since Nov 18, 2013	0.39

The correlation between VGE.AX and VSO.AX shifts across timeframes, from 0.37 (3 years) to 0.50 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VGE.AX vs. VSO.AX — Risk / Return Rank

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

VGE.AX

VGE.AX Risk / Return Rank: 26
VGE.AX Sharpe Ratio Rank: 28
VGE.AX Sortino Ratio Rank: 27
VGE.AX Omega Ratio Rank: 27
VGE.AX Calmar Ratio Rank: 23
VGE.AX Martin Ratio Rank: 26

VSO.AX

VSO.AX Risk / Return Rank: 15
VSO.AX Sharpe Ratio Rank: 16
VSO.AX Sortino Ratio Rank: 15
VSO.AX Omega Ratio Rank: 15
VSO.AX Calmar Ratio Rank: 14
VSO.AX Martin Ratio Rank: 15

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.

VGE.AX vs. VSO.AX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets Shares ETF (VGE.AX) and Vanguard MSCI Australian Small Companies INDEX ETF (VSO.AX). 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.

	VGE.AX	VSO.AX	Difference
Sharpe ratio: Return per unit of total volatility	0.85	0.39	+0.46
Sortino ratio: Return per unit of downside risk	1.27	0.66	+0.62
Omega ratio: Gain probability vs. loss probability	1.16	1.08	+0.08
Calmar ratio: Return relative to maximum drawdown	0.90	0.39	+0.51
Martin ratio: Return relative to average drawdown	2.80	1.00	+1.79

VGE.AX vs. VSO.AX - Sharpe Ratio Comparison

The current VGE.AX Sharpe Ratio is 0.85, which is higher than the VSO.AX Sharpe Ratio of 0.39. The chart below compares the historical Sharpe Ratios of VGE.AX and VSO.AX, 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

VGE.AX vs. VSO.AX - Drawdown Comparison

The maximum VGE.AX drawdown since its inception was -27.06%, smaller than the maximum VSO.AX drawdown of -40.60%. Use the drawdown chart below to compare losses from any high point for VGE.AX and VSO.AX.

Drawdown Indicators

	VGE.AX	VSO.AX	Difference
Max Drawdown Largest peak-to-trough decline	-27.06%	-40.60%	+13.54%
Max Drawdown (1Y) Largest decline over 1 year	-12.53%	-16.81%	+4.28%
Max Drawdown (3Y) Largest decline over 3 years	-12.53%	-16.81%	+4.28%
Max Drawdown (5Y) Largest decline over 5 years	-20.98%	-23.62%	+2.64%
Max Drawdown (10Y) Largest decline over 10 years	-22.93%	-40.60%	+17.67%
Current Drawdown Current decline from peak	-2.08%	-9.45%	+7.37%
Average Drawdown Average peak-to-trough decline	-6.81%	-6.78%	-0.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.13%	6.73%	-2.60%

Volatility

VGE.AX vs. VSO.AX - Volatility Comparison

Vanguard FTSE Emerging Markets Shares ETF (VGE.AX) has a higher volatility of 4.55% compared to Vanguard MSCI Australian Small Companies INDEX ETF (VSO.AX) at 3.79%. This indicates that VGE.AX's price experiences larger fluctuations and is considered to be riskier than VSO.AX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGE.AX	VSO.AX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.55%	3.79%	+0.76%
Volatility (6M) Calculated over the trailing 6-month period	11.58%	14.29%	-2.71%
Volatility (1Y) Calculated over the trailing 1-year period	13.39%	16.97%	-3.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.53%	16.31%	-2.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.50%	16.89%	-2.39%

Dividends

VGE.AX vs. VSO.AX - Dividend Comparison

VGE.AX's dividend yield for the trailing twelve months is around 0.32%, less than VSO.AX's 3.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGE.AX Vanguard FTSE Emerging Markets Shares ETF	0.32%	3.22%	0.50%	1.62%	2.83%	2.68%	3.78%	3.15%	2.22%	2.01%	1.65%	3.22%
VSO.AX Vanguard MSCI Australian Small Companies INDEX ETF	3.08%	6.86%	1.12%	1.48%	3.25%	3.55%	6.24%	2.96%	1.09%	2.57%	1.50%	1.08%

Frequently Asked Questions

Can I hold both VGE.AX and VSO.AX in my portfolio?

VGE.AX and VSO.AX have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

What is the main difference between VGE.AX and VSO.AX?

VGE.AX is categorized as Emerging Markets Equities, while VSO.AX is Australia Equities. VGE.AX tracks Vanguard FTSE Emerging Markets Shares Index, while VSO.AX tracks MSCI Australian Shares Small Cap Index.