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VGHAX vs. VSMAX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VGHAX vs. VSMAX

Last updated Jun 4, 2026

VGHAX (Vanguard Health Care Fund Admiral Shares) and VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) are both mutual funds - VGHAX is a Health & Biotech Equities fund managed by Vanguard, while VSMAX is a Small Cap Blend Equities fund managed by Vanguard. Over the past 10 years, VGHAX returned 8.70%/yr vs 11.37%/yr for VSMAX. A 0.70 correlation means they provide meaningful diversification when combined. VGHAX charges 0.25%/yr vs 0.05%/yr for VSMAX.

Performance

VGHAX vs. VSMAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Health Care Fund Admiral Shares (VGHAX) and Vanguard Small-Cap Index Fund Admiral Shares (VSMAX). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VGHAX achieves a -4.65% return, which is significantly lower than VSMAX's 14.94% return. Over the past 10 years, VGHAX has underperformed VSMAX with an annualized return of 8.70%, while VSMAX has yielded a comparatively higher 11.37% annualized return.

VGHAX

1D
-1.55%
1M
-1.39%
YTD
-4.65%
6M
-4.26%
1Y
16.26%
3Y*
8.39%
5Y*
7.23%
10Y*
8.70%

VSMAX

1D
0.80%
1M
4.24%
YTD
14.94%
6M
14.89%
1Y
29.65%
3Y*
17.30%
5Y*
7.34%
10Y*
11.37%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VGHAX vs. VSMAX - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VGHAX
Vanguard Health Care Fund Admiral Shares		-4.65%19.72%9.10%5.51%-1.00%12.82%12.62%22.99%1.07%19.64%
VSMAX
Vanguard Small-Cap Index Fund Admiral Shares		14.94%8.83%14.23%18.17%-17.61%17.74%19.06%27.36%-9.33%16.24%

Correlation

The correlation between VGHAX and VSMAX is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.48

Correlation (3Y)
Calculated over the trailing 3-year period

0.55

Correlation (5Y)
Calculated over the trailing 5-year period

0.62

Correlation (10Y)
Calculated over the trailing 10-year period

0.64

Correlation (All Time)
Calculated using the full available price history since Nov 13, 2001

0.70

Over the past year, the correlation between VGHAX and VSMAX has dropped to 0.48 - well below their long-term average of 0.70, suggesting their price drivers have been diverging.

VGHAX vs. VSMAX - Sectors Allocation Comparison

Sectors
VGHAX
VSMAX

Healthcare

97.8%
11.1%

Consumer Defensive

1.2%
3.4%

Financial Services

0.0%
12.6%

Basic Materials

0.0%
4.8%

Communication Services

-

3.1%

Consumer Cyclical

-

11.3%

Energy

-

4.7%

Industrials

-

20.8%

Real Estate

-

7.6%

Technology

-

17.2%

Utilities

-

3.3%

Healthcare

VGHAX
97.8%
VSMAX
11.1%

Consumer Defensive

VGHAX
1.2%
VSMAX
3.4%

Financial Services

VGHAX
0.0%
VSMAX
12.6%

Basic Materials

VGHAX
0.0%
VSMAX
4.8%

Communication Services

VGHAX

-

VSMAX
3.1%

Consumer Cyclical

VGHAX

-

VSMAX
11.3%

Energy

VGHAX

-

VSMAX
4.7%

Industrials

VGHAX

-

VSMAX
20.8%

Real Estate

VGHAX

-

VSMAX
7.6%

Technology

VGHAX

-

VSMAX
17.2%

Utilities

VGHAX

-

VSMAX
3.3%

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Vanguard Health Care Fund Admiral Shares

Vanguard Small-Cap Index Fund Admiral Shares

Often compared with VGHAX:
VGHAX vs. VHTVGHAX vs. VHCIXVGHAX vs. FPHAXVGHAX vs. XLVVGHAX vs. VIGAXVGHAX vs. VPCCXVGHAX vs. BPTRX
Often compared with VSMAX:
VSMAX vs. VIMAXVSMAX vs. FSSNXVSMAX vs. VSGAXVSMAX vs. VBVSMAX vs. VOOVSMAX vs. VBRVSMAX vs. IWM

Return for Risk

VGHAX vs. VSMAX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VGHAX
VGHAX Risk / Return Rank: 1717
Overall Rank
VGHAX Sharpe Ratio Rank: 1515
Sharpe Ratio Rank
VGHAX Sortino Ratio Rank: 1616
Sortino Ratio Rank
VGHAX Omega Ratio Rank: 1414
Omega Ratio Rank
VGHAX Calmar Ratio Rank: 2222
Calmar Ratio Rank
VGHAX Martin Ratio Rank: 1616
Martin Ratio Rank
VSMAX
VSMAX Risk / Return Rank: 5454
Overall Rank
VSMAX Sharpe Ratio Rank: 4444
Sharpe Ratio Rank
VSMAX Sortino Ratio Rank: 4343
Sortino Ratio Rank
VSMAX Omega Ratio Rank: 4040
Omega Ratio Rank
VSMAX Calmar Ratio Rank: 7777
Calmar Ratio Rank
VSMAX Martin Ratio Rank: 6767
Martin Ratio Rank
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.

VGHAX vs. VSMAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care Fund Admiral Shares (VGHAX) and Vanguard Small-Cap Index Fund Admiral Shares (VSMAX). 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.

VGHAXVSMAXDifference
Sharpe ratioReturn per unit of total volatility
1.08
1.94

-0.85

Sortino ratioReturn per unit of downside risk
1.68
2.74

-1.06

Omega ratioGain probability vs. loss probability

1.19

1.33

-0.14

Calmar ratioReturn relative to maximum drawdown

1.74

3.51

-1.78

Martin ratioReturn relative to average drawdown

4.63

12.97

-8.34

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VGHAX vs. VSMAX - Sharpe Ratio Comparison

The current VGHAX Sharpe Ratio is 1.08, which is lower than the VSMAX Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of VGHAX and VSMAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

VGHAXVSMAXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.08

1.94

-0.85

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.40

0.36

+0.04

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.50

0.53

-0.03

Sharpe Ratio (All Time)

Calculated using the full available price history

0.60

0.39

+0.20

Drawdowns

VGHAX vs. VSMAX - Drawdown Comparison

The maximum VGHAX drawdown since its inception was -36.85%, smaller than the maximum VSMAX drawdown of -59.68%. Use the drawdown chart below to compare losses from any high point for VGHAX and VSMAX.

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Drawdown Indicators

VGHAXVSMAXDifference

Max Drawdown

Largest peak-to-trough decline

-36.85%

-59.68%

+22.83%

Max Drawdown (1Y)

Largest decline over 1 year

-9.19%

-8.97%

-0.22%

Max Drawdown (3Y)

Largest decline over 3 years

-16.05%

-25.25%

+9.20%

Max Drawdown (5Y)

Largest decline over 5 years

-16.92%

-28.14%

+11.22%

Max Drawdown (10Y)

Largest decline over 10 years

-27.17%

-41.82%

+14.65%

Current Drawdown

Current decline from peak

-7.60%

0.00%

-7.60%

Average Drawdown

Average peak-to-trough decline

-5.61%

-9.70%

+4.09%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.44%

2.43%

+1.01%

Volatility

VGHAX vs. VSMAX - Volatility Comparison

The current volatility for Vanguard Health Care Fund Admiral Shares (VGHAX) is 3.78%, while Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) has a volatility of 4.40%. This indicates that VGHAX experiences smaller price fluctuations and is considered to be less risky than VSMAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VGHAXVSMAXDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.78%

4.40%

-0.62%

Volatility (6M)

Calculated over the trailing 6-month period

10.35%

11.72%

-1.37%

Volatility (1Y)

Calculated over the trailing 1-year period

14.74%

16.27%

-1.53%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

18.12%

20.71%

-2.59%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.58%

21.57%

-3.99%

VGHAX vs. VSMAX - Expense Ratio Comparison

VGHAX has a 0.25% expense ratio, which is higher than VSMAX's 0.05% 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

VGHAX vs. VSMAX - Dividend Comparison

VGHAX's dividend yield for the trailing twelve months is around 7.00%, more than VSMAX's 1.18% yield.

PositionTTM20252024202320222021202020192018201720162015
VGHAX
Vanguard Health Care Fund Admiral Shares		7.00%6.07%22.84%7.22%5.49%7.05%8.02%11.87%9.15%7.36%8.60%8.21%
VSMAX
Vanguard Small-Cap Index Fund Admiral Shares		1.18%1.33%1.30%1.56%1.54%1.24%1.14%1.39%1.67%1.35%1.49%1.48%

Frequently Asked Questions

VGHAX and VSMAX have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VSMAX has higher volatility (4.40%) compared to VGHAX (3.78%). In terms of maximum drawdown, VGHAX dropped -36.85% vs VSMAX's -59.68%.

VSMAX currently has the higher Sharpe Ratio (1.94 vs 1.08), 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.

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