VGT vs. VSMAX

Last updated Jun 13, 2026

VGT (Vanguard Information Technology ETF) and VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) are both funds - VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index, while VSMAX is a Small Cap Blend Equities fund tracking the CRSP US Small Cap Index. Both are passively managed. Over the past 10 years, VGT returned 25.19%/yr vs 11.48%/yr for VSMAX. A 0.78 correlation means they provide meaningful diversification when combined. VGT charges 0.09%/yr vs 0.05%/yr for VSMAX.

Performance

VGT vs. VSMAX - Performance Comparison

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

Returns By Period

In the year-to-date period, VGT achieves a 24.03% return, which is significantly higher than VSMAX's 14.59% return. Over the past 10 years, VGT has outperformed VSMAX with an annualized return of 25.19%, while VSMAX has yielded a comparatively lower 11.48% annualized return.

VGT

• 1D: 0.58%
• 1M: 2.90%
• YTD: 24.03%
• 6M: 24.13%
• 1Y: 47.99%
• 3Y*: 29.84%
• 5Y*: 20.35%
• 10Y*: 25.19%

VSMAX

• 1D: 2.58%
• 1M: 3.08%
• YTD: 14.59%
• 6M: 12.93%
• 1Y: 27.91%
• 3Y*: 16.37%
• 5Y*: 6.83%
• 10Y*: 11.48%

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

VGT vs. VSMAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGT Vanguard Information Technology ETF	24.03%	21.77%	29.30%	52.66%	-29.70%	30.45%	46.04%	48.62%	2.46%	37.08%
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	14.59%	8.83%	14.23%	18.17%	-17.61%	17.74%	19.06%	27.36%	-9.33%	16.24%

Correlation

The correlation between VGT and VSMAX is 0.64, 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	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.72
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.78

The correlation between VGT and VSMAX shifts across timeframes, from 0.64 (1 year) to 0.78 (all time), reflecting how their relationship changes across market environments.

VGT vs. VSMAX - Sectors Allocation Comparison

Sectors	VGT	VSMAX
Technology	98.5%	17.2%
Communication Services	0.5%	3.1%
Financial Services	0.5%	12.6%
Industrials	0.4%	20.8%
Energy	0.3%	4.7%
Consumer Cyclical	0.1%	11.3%
Basic Materials	0.0%	4.8%
Healthcare	0.0%	11.1%
Consumer Defensive	-	3.4%
Real Estate	-	7.6%
Utilities	-	3.3%

Return for Risk

VGT vs. VSMAX — Risk / Return Rank

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

VGT

VGT Risk / Return Rank: 70
VGT Sharpe Ratio Rank: 79
VGT Sortino Ratio Rank: 71
VGT Omega Ratio Rank: 72
VGT Calmar Ratio Rank: 67
VGT Martin Ratio Rank: 59

VSMAX

VSMAX Risk / Return Rank: 62
VSMAX Sharpe Ratio Rank: 52
VSMAX Sortino Ratio Rank: 54
VSMAX Omega Ratio Rank: 46
VSMAX Calmar Ratio Rank: 81
VSMAX Martin Ratio Rank: 78

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.

VGT vs. VSMAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Information Technology ETF (VGT) 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.

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.

	VGT	VSMAX	Difference
Sharpe ratio: Return per unit of total volatility	2.19	1.67	+0.52
Sortino ratio: Return per unit of downside risk	2.74	2.39	+0.34
Omega ratio: Gain probability vs. loss probability	1.36	1.29	+0.07
Calmar ratio: Return relative to maximum drawdown	2.94	3.11	-0.17
Martin ratio: Return relative to average drawdown	9.11	11.42	-2.31

VGT vs. VSMAX - Sharpe Ratio Comparison

The current VGT Sharpe Ratio is 2.19, which is higher than the VSMAX Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of VGT 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.

Drawdowns

VGT vs. VSMAX - Drawdown Comparison

The maximum VGT drawdown since its inception was -54.63%, smaller than the maximum VSMAX drawdown of -59.68%. Use the drawdown chart below to compare losses from any high point for VGT and VSMAX.

Drawdown Indicators

	VGT	VSMAX	Difference
Max Drawdown Largest peak-to-trough decline	-54.63%	-59.68%	+5.05%
Max Drawdown (1Y) Largest decline over 1 year	-16.40%	-8.97%	-7.43%
Max Drawdown (3Y) Largest decline over 3 years	-27.23%	-25.25%	-1.98%
Max Drawdown (5Y) Largest decline over 5 years	-35.07%	-28.14%	-6.93%
Max Drawdown (10Y) Largest decline over 10 years	-35.07%	-41.82%	+6.75%
Current Drawdown Current decline from peak	-7.18%	-0.32%	-6.86%
Average Drawdown Average peak-to-trough decline	-7.95%	-9.68%	+1.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.28%	2.44%	+2.84%

Volatility

VGT vs. VSMAX - Volatility Comparison

Vanguard Information Technology ETF (VGT) has a higher volatility of 10.00% compared to Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) at 5.47%. This indicates that VGT's price experiences larger fluctuations and is considered to be riskier than VSMAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGT	VSMAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.00%	5.47%	+4.53%
Volatility (6M) Calculated over the trailing 6-month period	18.00%	12.32%	+5.68%
Volatility (1Y) Calculated over the trailing 1-year period	22.00%	16.69%	+5.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.40%	20.77%	+4.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.72%	21.59%	+3.13%

VGT vs. VSMAX - Expense Ratio Comparison

VGT has a 0.09% 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

VGT vs. VSMAX - Dividend Comparison

VGT's dividend yield for the trailing twelve months is around 0.33%, less than VSMAX's 1.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGT Vanguard Information Technology ETF	0.33%	0.40%	0.60%	0.65%	0.91%	0.64%	0.82%	1.11%	1.29%	0.99%	1.31%	1.28%
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	1.19%	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

Can I hold both VGT and VSMAX in my portfolio?

VGT and VSMAX have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGT or VSMAX?

VGT has higher volatility (10.00%) compared to VSMAX (5.47%). In terms of maximum drawdown, VGT dropped -54.63% vs VSMAX's -59.68%.

Which has better risk-adjusted returns?

VGT currently has the higher Sharpe Ratio (2.19 vs 1.67), 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.