VGS.AX vs. VSO.AX

Last updated Jul 16, 2026

VGS.AX (Vanguard MSCI Index International Shares ETF) and VSO.AX (Vanguard MSCI Australian Small Companies INDEX ETF) are both exchange-traded funds - VGS.AX is a Global Equities fund tracking the Vanguard MSCI Index International 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, VGS.AX returned 13.63%/yr vs 7.48%/yr for VSO.AX. At a 0.49 correlation, their price movements are largely independent. VGS.AX charges 0.18%/yr vs 0.30%/yr for VSO.AX.

Performance

VGS.AX vs. VSO.AX - Performance Comparison

The chart below illustrates the hypothetical performance of a A$10,000 investment in Vanguard MSCI Index International Shares ETF (VGS.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, VGS.AX achieves a 5.31% return, which is significantly higher than VSO.AX's -6.04% return. Over the past 10 years, VGS.AX has outperformed VSO.AX with an annualized return of 13.63%, while VSO.AX has yielded a comparatively lower 7.48% annualized return.

VGS.AX

• 1D: -0.01%
• 1M: 1.72%
• 6M: 4.14%
• YTD: 5.31%
• 1Y: 13.66%
• 3Y*: 17.60%
• 5Y*: 12.49%
• 10Y*: 13.63%

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)

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

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGS.AX Vanguard MSCI Index International Shares ETF	5.31%	12.89%	29.23%	22.54%	-12.72%	29.67%	5.76%	29.16%	-0.01%	12.95%
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 VGS.AX and VSO.AX is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.54
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Nov 18, 2014	0.49

The correlation between VGS.AX and VSO.AX has been stable across timeframes, ranging from 0.46 to 0.54 - a consistent structural relationship.

Return for Risk

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

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

VGS.AX

VGS.AX Risk / Return Rank: 42
VGS.AX Sharpe Ratio Rank: 49
VGS.AX Sortino Ratio Rank: 47
VGS.AX Omega Ratio Rank: 52
VGS.AX Calmar Ratio Rank: 30
VGS.AX Martin Ratio Rank: 32

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.

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

This table presents a comparison of risk-adjusted performance metrics for Vanguard MSCI Index International Shares ETF (VGS.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.

	VGS.AX	VSO.AX	Difference
Sharpe ratio: Return per unit of total volatility	1.41	0.39	+1.02
Sortino ratio: Return per unit of downside risk	1.98	0.66	+1.32
Omega ratio: Gain probability vs. loss probability	1.27	1.08	+0.19
Calmar ratio: Return relative to maximum drawdown	1.28	0.39	+0.88
Martin ratio: Return relative to average drawdown	3.83	1.00	+2.83

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

The current VGS.AX Sharpe Ratio is 1.41, which is higher than the VSO.AX Sharpe Ratio of 0.39. The chart below compares the historical Sharpe Ratios of VGS.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

VGS.AX vs. VSO.AX - Drawdown Comparison

The maximum VGS.AX drawdown since its inception was -23.39%, smaller than the maximum VSO.AX drawdown of -40.60%. Use the drawdown chart below to compare losses from any high point for VGS.AX and VSO.AX.

Drawdown Indicators

	VGS.AX	VSO.AX	Difference
Max Drawdown Largest peak-to-trough decline	-23.39%	-40.60%	+17.21%
Max Drawdown (1Y) Largest decline over 1 year	-10.72%	-16.81%	+6.09%
Max Drawdown (3Y) Largest decline over 3 years	-13.82%	-16.81%	+2.99%
Max Drawdown (5Y) Largest decline over 5 years	-20.53%	-23.62%	+3.09%
Max Drawdown (10Y) Largest decline over 10 years	-23.39%	-40.60%	+17.21%
Current Drawdown Current decline from peak	-0.36%	-9.45%	+9.09%
Average Drawdown Average peak-to-trough decline	-4.18%	-6.78%	+2.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.65%	6.73%	-3.08%

Volatility

VGS.AX vs. VSO.AX - Volatility Comparison

The current volatility for Vanguard MSCI Index International Shares ETF (VGS.AX) is 2.21%, while Vanguard MSCI Australian Small Companies INDEX ETF (VSO.AX) has a volatility of 3.79%. This indicates that VGS.AX experiences smaller price fluctuations and is considered to be less risky than VSO.AX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGS.AX	VSO.AX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.21%	3.79%	-1.58%
Volatility (6M) Calculated over the trailing 6-month period	7.83%	14.29%	-6.46%
Volatility (1Y) Calculated over the trailing 1-year period	9.77%	16.97%	-7.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.41%	16.31%	-3.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.92%	16.89%	-3.97%

VGS.AX vs. VSO.AX - Expense Ratio Comparison

VGS.AX has a 0.18% expense ratio, which is lower than VSO.AX's 0.30% expense ratio.

Dividends

VGS.AX vs. VSO.AX - Dividend Comparison

VGS.AX's dividend yield for the trailing twelve months is around 0.97%, less than VSO.AX's 3.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGS.AX Vanguard MSCI Index International Shares ETF	0.97%	2.49%	1.76%	1.82%	1.42%	1.75%	2.24%	2.42%	2.19%	2.25%	3.29%	2.35%
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 VGS.AX and VSO.AX in my portfolio?

VGS.AX and VSO.AX have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VGS.AX or VSO.AX?

On fees, VGS.AX is cheaper at 0.18% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VGS.AX or VSO.AX?

VGS.AX is cheaper with a 0.18% expense ratio, compared with 0.30% for VSO.AX.

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

VGS.AX is categorized as Global Equities, while VSO.AX is Australia Equities. VGS.AX tracks Vanguard MSCI Index International Shares Index, while VSO.AX tracks MSCI Australian Shares Small Cap Index. Their fees differ too: 0.18% for VGS.AX and 0.30% for VSO.AX.