VHY.AX vs. VSO.AX

Last updated Apr 3, 2026

Compare and contrast key facts about Vanguard Australian Shares High Yield ETF (VHY.AX) and Vanguard MSCI Australian Small Companies INDEX ETF (VSO.AX).

VHY.AX and VSO.AX are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VHY.AX is a passively managed fund by Vanguard that tracks the performance of the FTSE Australia High Dividend Yield Index. It was launched on May 23, 2011. VSO.AX is a passively managed fund by Vanguard that tracks the performance of the MSCI Australian Shares Small Cap Index. It was launched on May 23, 2011. Both VHY.AX and VSO.AX are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

VHY.AX vs. VSO.AX - Performance Comparison

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

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

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VHY.AX Vanguard Australian Shares High Yield ETF	6.97%	14.77%	11.78%	11.14%	8.51%	16.65%	1.73%	20.44%	-7.53%	9.85%
VSO.AX Vanguard MSCI Australian Small Companies INDEX ETF	-9.03%	24.14%	8.91%	6.32%	-11.74%	21.77%	14.75%	21.67%	-7.43%	17.67%

Returns By Period

In the year-to-date period, VHY.AX achieves a 6.97% return, which is significantly higher than VSO.AX's -9.03% return. Over the past 10 years, VHY.AX has outperformed VSO.AX with an annualized return of 10.89%, while VSO.AX has yielded a comparatively lower 9.43% annualized return.

VHY.AX

• 1D: -0.40%
• 1M: -1.44%
• YTD: 6.97%
• 6M: 7.85%
• 1Y: 23.57%
• 3Y*: 14.14%
• 5Y*: 12.39%
• 10Y*: 10.89%

VSO.AX

• 1D: -2.69%
• 1M: -8.61%
• YTD: -9.03%
• 6M: -8.67%
• 1Y: 15.64%
• 3Y*: 9.22%
• 5Y*: 6.37%
• 10Y*: 9.43%

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

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

VHY.AX has a 0.25% expense ratio, which is lower than VSO.AX's 0.30% expense ratio.

VSO.AX

Vanguard MSCI Australian Small Companies INDEX ETF

VHY.AX

Vanguard Australian Shares High Yield ETF

Return for Risk

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

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

VHY.AX

VHY.AX Risk / Return Rank: 90
VHY.AX Sharpe Ratio Rank: 88
VHY.AX Sortino Ratio Rank: 89
VHY.AX Omega Ratio Rank: 88
VHY.AX Calmar Ratio Rank: 95
VHY.AX Martin Ratio Rank: 92

VSO.AX

VSO.AX Risk / Return Rank: 37
VSO.AX Sharpe Ratio Rank: 44
VSO.AX Sortino Ratio Rank: 42
VSO.AX Omega Ratio Rank: 40
VSO.AX Calmar Ratio Rank: 30
VSO.AX 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.

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

This table presents a comparison of risk-adjusted performance metrics for Vanguard Australian Shares High Yield ETF (VHY.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.

	VHY.AX	VSO.AX	Difference
Sharpe ratio Return per unit of total volatility	1.92	0.87	+1.05
Sortino ratio Return per unit of downside risk	2.60	1.27	+1.34
Omega ratio Gain probability vs. loss probability	1.38	1.17	+0.20
Calmar ratio Return relative to maximum drawdown	5.17	0.99	+4.18
Martin ratio Return relative to average drawdown	14.92	3.59	+11.33
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

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

The current VHY.AX Sharpe Ratio is 1.92, which is higher than the VSO.AX Sharpe Ratio of 0.87. The chart below compares the historical Sharpe Ratios of VHY.AX and VSO.AX, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	VHY.AX	VSO.AX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.92	0.87	+1.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.97	0.39	+0.58
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.75	0.56	+0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.67	0.37	+0.30

Correlation

The correlation between VHY.AX and VSO.AX is 0.70, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

VHY.AX vs. VSO.AX - Dividend Comparison

VHY.AX's dividend yield for the trailing twelve months is around 5.54%, less than VSO.AX's 7.54% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VHY.AX Vanguard Australian Shares High Yield ETF	5.54%	8.36%	5.32%	4.85%	5.74%	4.77%	3.55%	5.35%	9.07%	7.49%	5.16%	8.07%
VSO.AX Vanguard MSCI Australian Small Companies INDEX ETF	7.54%	6.86%	2.44%	3.89%	5.39%	3.55%	6.24%	2.96%	2.21%	3.86%	3.30%	2.68%

Drawdowns

VHY.AX vs. VSO.AX - Drawdown Comparison

The maximum VHY.AX drawdown since its inception was -35.54%, smaller than the maximum VSO.AX drawdown of -40.60%. Use the drawdown chart below to compare losses from any high point for VHY.AX and VSO.AX.

Drawdown Indicators

	VHY.AX	VSO.AX	Difference
Max Drawdown Largest peak-to-trough decline	-35.54%	-40.60%	+5.06%
Max Drawdown (1Y) Largest decline over 1 year	-6.54%	-16.81%	+10.27%
Max Drawdown (5Y) Largest decline over 5 years	-14.41%	-23.53%	+9.12%
Max Drawdown (10Y) Largest decline over 10 years	-35.54%	-40.60%	+5.06%
Current Drawdown Current decline from peak	-2.15%	-13.79%	+11.64%
Average Drawdown Average peak-to-trough decline	-4.64%	-6.36%	+1.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.68%	4.61%	-2.93%

Volatility

VHY.AX vs. VSO.AX - Volatility Comparison

The current volatility for Vanguard Australian Shares High Yield ETF (VHY.AX) is 3.84%, while Vanguard MSCI Australian Small Companies INDEX ETF (VSO.AX) has a volatility of 8.48%. This indicates that VHY.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

	VHY.AX	VSO.AX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.84%	8.48%	-4.64%
Volatility (6M) Calculated over the trailing 6-month period	8.00%	13.89%	-5.89%
Volatility (1Y) Calculated over the trailing 1-year period	12.25%	17.94%	-5.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.67%	16.16%	-3.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.42%	16.84%	-2.42%