VGSTX vs. VHGEX

Last updated Jun 23, 2026

VGSTX (Vanguard STAR Fund) and VHGEX (Vanguard Global Equity Fund) are both mutual funds - VGSTX is a Diversified Portfolio fund actively managed by Vanguard, while VHGEX is a Global Equities fund managed by Vanguard. Over the past 10 years, VGSTX returned 9.68%/yr vs 11.86%/yr for VHGEX. Their correlation of 0.88 suggests significant overlap in exposure. VGSTX charges 0.29%/yr vs 0.45%/yr for VHGEX.

Performance

VGSTX vs. VHGEX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard STAR Fund (VGSTX) and Vanguard Global Equity Fund (VHGEX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VGSTX achieves a 6.04% return, which is significantly lower than VHGEX's 6.79% return. Over the past 10 years, VGSTX has underperformed VHGEX with an annualized return of 9.68%, while VHGEX has yielded a comparatively higher 11.86% annualized return.

VGSTX

• 1D: 0.68%
• 1M: 1.34%
• YTD: 6.04%
• 6M: 5.92%
• 1Y: 17.74%
• 3Y*: 13.98%
• 5Y*: 6.70%
• 10Y*: 9.68%

VHGEX

• 1D: 1.31%
• 1M: 1.34%
• YTD: 6.79%
• 6M: 6.59%
• 1Y: 22.29%
• 3Y*: 15.88%
• 5Y*: 7.59%
• 10Y*: 11.86%

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

VGSTX vs. VHGEX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGSTX Vanguard STAR Fund	6.04%	15.88%	13.69%	17.14%	-18.05%	9.65%	21.45%	22.21%	-5.33%	16.95%
VHGEX Vanguard Global Equity Fund	6.79%	21.22%	13.41%	23.52%	-22.72%	13.06%	22.38%	28.73%	-9.15%	27.80%

Correlation

The correlation between VGSTX and VHGEX is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Aug 31, 1995	0.88

The correlation between VGSTX and VHGEX has been stable across timeframes, ranging from 0.88 to 0.96 - a consistent structural relationship.

Return for Risk

VGSTX vs. VHGEX — Risk / Return Rank

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

VGSTX

VGSTX Risk / Return Rank: 53
VGSTX Sharpe Ratio Rank: 53
VGSTX Sortino Ratio Rank: 52
VGSTX Omega Ratio Rank: 51
VGSTX Calmar Ratio Rank: 50
VGSTX Martin Ratio Rank: 60

VHGEX

VHGEX Risk / Return Rank: 28
VHGEX Sharpe Ratio Rank: 28
VHGEX Sortino Ratio Rank: 26
VHGEX Omega Ratio Rank: 27
VHGEX Calmar Ratio Rank: 27
VHGEX Martin Ratio Rank: 32

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.

VGSTX vs. VHGEX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard STAR Fund (VGSTX) and Vanguard Global Equity Fund (VHGEX). 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.

	VGSTX	VHGEX	Difference
Sharpe ratio: Return per unit of total volatility	1.96	1.41	+0.55
Sortino ratio: Return per unit of downside risk	2.79	1.99	+0.80
Omega ratio: Gain probability vs. loss probability	1.36	1.25	+0.11
Calmar ratio: Return relative to maximum drawdown	2.58	1.80	+0.78
Martin ratio: Return relative to average drawdown	11.13	6.85	+4.28

VGSTX vs. VHGEX - Sharpe Ratio Comparison

The current VGSTX Sharpe Ratio is 1.96, which is higher than the VHGEX Sharpe Ratio of 1.41. The chart below compares the historical Sharpe Ratios of VGSTX and VHGEX, 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

VGSTX vs. VHGEX - Drawdown Comparison

The maximum VGSTX drawdown since its inception was -38.62%, smaller than the maximum VHGEX drawdown of -64.81%. Use the drawdown chart below to compare losses from any high point for VGSTX and VHGEX.

Drawdown Indicators

	VGSTX	VHGEX	Difference
Max Drawdown Largest peak-to-trough decline	-38.62%	-64.81%	+26.19%
Max Drawdown (1Y) Largest decline over 1 year	-6.76%	-11.92%	+5.16%
Max Drawdown (3Y) Largest decline over 3 years	-11.77%	-19.21%	+7.44%
Max Drawdown (5Y) Largest decline over 5 years	-25.55%	-33.02%	+7.47%
Max Drawdown (10Y) Largest decline over 10 years	-25.55%	-33.23%	+7.68%
Current Drawdown Current decline from peak	-0.42%	-0.94%	+0.52%
Average Drawdown Average peak-to-trough decline	-4.03%	-9.94%	+5.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.57%	3.13%	-1.56%

Volatility

VGSTX vs. VHGEX - Volatility Comparison

The current volatility for Vanguard STAR Fund (VGSTX) is 3.41%, while Vanguard Global Equity Fund (VHGEX) has a volatility of 5.71%. This indicates that VGSTX experiences smaller price fluctuations and is considered to be less risky than VHGEX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGSTX	VHGEX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.41%	5.71%	-2.30%
Volatility (6M) Calculated over the trailing 6-month period	7.26%	12.18%	-4.92%
Volatility (1Y) Calculated over the trailing 1-year period	8.91%	15.19%	-6.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.89%	18.40%	-6.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.86%	18.09%	-6.23%

VGSTX vs. VHGEX - Expense Ratio Comparison

VGSTX has a 0.29% expense ratio, which is lower than VHGEX's 0.45% expense ratio.

Dividends

VGSTX vs. VHGEX - Dividend Comparison

VGSTX's dividend yield for the trailing twelve months is around 8.61%, less than VHGEX's 11.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGSTX Vanguard STAR Fund	8.61%	9.13%	10.67%	5.35%	8.34%	6.70%	6.68%	6.07%	6.90%	3.32%	4.77%	5.62%
VHGEX Vanguard Global Equity Fund	11.59%	12.38%	4.24%	1.15%	11.32%	10.90%	2.88%	6.20%	8.45%	1.29%	1.51%	1.71%

Frequently Asked Questions

Can I hold both VGSTX and VHGEX in my portfolio?

With a correlation of 0.96, VGSTX and VHGEX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VGSTX or VHGEX?

VHGEX has higher volatility (5.71%) compared to VGSTX (3.41%). In terms of maximum drawdown, VGSTX dropped -38.62% vs VHGEX's -64.81%.

Which has better risk-adjusted returns?

VGSTX currently has the higher Sharpe Ratio (1.96 vs 1.41), 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.