VIS vs. VSS

Last updated Jun 14, 2026

VIS (Vanguard Industrials ETF) and VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) are both exchange-traded funds - VIS is a Industrials Equities fund tracking the MSCI US Investable Market Industrials 25/50 Index, while VSS is a Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US Index. Both are passively managed. Over the past 10 years, VIS returned 14.22%/yr vs 8.49%/yr for VSS. A 0.75 correlation means they provide meaningful diversification when combined. VIS charges 0.09%/yr vs 0.07%/yr for VSS.

Performance

VIS vs. VSS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Industrials ETF (VIS) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VIS achieves a 15.65% return, which is significantly higher than VSS's 10.04% return. Over the past 10 years, VIS has outperformed VSS with an annualized return of 14.22%, while VSS has yielded a comparatively lower 8.49% annualized return.

VIS

• 1D: 0.51%
• 1M: 0.80%
• YTD: 15.65%
• 6M: 14.50%
• 1Y: 28.67%
• 3Y*: 21.45%
• 5Y*: 13.11%
• 10Y*: 14.22%

VSS

• 1D: 0.50%
• 1M: -2.16%
• YTD: 10.04%
• 6M: 12.05%
• 1Y: 24.95%
• 3Y*: 15.73%
• 5Y*: 5.58%
• 10Y*: 8.49%

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

VIS vs. VSS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VIS Vanguard Industrials ETF	15.65%	18.57%	16.85%	22.50%	-8.57%	20.80%	12.34%	30.09%	-14.01%	21.47%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	10.04%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%

Correlation

The correlation between VIS and VSS is 0.68, 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	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.70
Correlation (All Time) Calculated using the full available price history since Apr 6, 2009	0.75

The correlation between VIS and VSS has been stable across timeframes, ranging from 0.68 to 0.75 - a consistent structural relationship.

VIS vs. VSS - Sectors Allocation Comparison

Sectors	VIS	VSS
Industrials	89.4%	19.9%
Technology	4.5%	13.9%
Utilities	4.3%	3.6%
Consumer Cyclical	1.1%	7.3%
Financial Services	0.2%	14.2%
Energy	0.1%	8.4%
Basic Materials	0.1%	16.0%
Communication Services	0.0%	2.0%
Real Estate	0.0%	7.2%
Healthcare	0.0%	4.3%
Consumer Defensive	-	2.7%

Return for Risk

VIS vs. VSS — Risk / Return Rank

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

VIS

VIS Risk / Return Rank: 54
VIS Sharpe Ratio Rank: 54
VIS Sortino Ratio Rank: 54
VIS Omega Ratio Rank: 50
VIS Calmar Ratio Rank: 51
VIS Martin Ratio Rank: 60

VSS

VSS Risk / Return Rank: 49
VSS Sharpe Ratio Rank: 49
VSS Sortino Ratio Rank: 48
VSS Omega Ratio Rank: 51
VSS Calmar Ratio Rank: 46
VSS Martin Ratio Rank: 51

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.

VIS vs. VSS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Industrials ETF (VIS) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). 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.

	VIS	VSS	Difference
Sharpe ratio: Return per unit of total volatility	1.60	1.51	+0.09
Sortino ratio: Return per unit of downside risk	2.30	2.10	+0.20
Omega ratio: Gain probability vs. loss probability	1.27	1.28	-0.01
Calmar ratio: Return relative to maximum drawdown	2.24	2.03	+0.22
Martin ratio: Return relative to average drawdown	9.28	7.61	+1.67

VIS vs. VSS - Sharpe Ratio Comparison

The current VIS Sharpe Ratio is 1.60, which is comparable to the VSS Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of VIS and VSS, 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

VIS vs. VSS - Drawdown Comparison

The maximum VIS drawdown since its inception was -63.51%, which is greater than VSS's maximum drawdown of -43.51%. Use the drawdown chart below to compare losses from any high point for VIS and VSS.

Drawdown Indicators

	VIS	VSS	Difference
Max Drawdown Largest peak-to-trough decline	-63.51%	-43.51%	-20.00%
Max Drawdown (1Y) Largest decline over 1 year	-12.29%	-11.62%	-0.67%
Max Drawdown (3Y) Largest decline over 3 years	-20.80%	-15.73%	-5.07%
Max Drawdown (5Y) Largest decline over 5 years	-22.96%	-33.93%	+10.97%
Max Drawdown (10Y) Largest decline over 10 years	-42.42%	-43.51%	+1.09%
Current Drawdown Current decline from peak	-0.34%	-3.05%	+2.71%
Average Drawdown Average peak-to-trough decline	-8.37%	-9.63%	+1.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.97%	3.09%	-0.12%

Volatility

VIS vs. VSS - Volatility Comparison

Vanguard Industrials ETF (VIS) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) have volatilities of 6.71% and 6.52%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VIS	VSS	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.71%	6.52%	+0.19%
Volatility (6M) Calculated over the trailing 6-month period	14.28%	13.55%	+0.73%
Volatility (1Y) Calculated over the trailing 1-year period	17.20%	15.60%	+1.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.48%	16.59%	+1.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.48%	17.30%	+3.18%

VIS vs. VSS - Expense Ratio Comparison

VIS has a 0.09% expense ratio, which is higher than VSS's 0.07% 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

VIS vs. VSS - Dividend Comparison

VIS's dividend yield for the trailing twelve months is around 0.88%, less than VSS's 3.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VIS Vanguard Industrials ETF	0.88%	1.01%	1.23%	1.36%	1.52%	1.11%	1.38%	1.68%	1.90%	1.60%	1.81%	1.94%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.08%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Frequently Asked Questions

Can I hold both VIS and VSS in my portfolio?

VIS and VSS have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VIS or VSS?

VIS has higher volatility (6.71%) compared to VSS (6.52%). In terms of maximum drawdown, VIS dropped -63.51% vs VSS's -43.51%.

Which ETF is better, VIS or VSS?

On 10-year performance, VIS leads with 14.22% vs 8.49% for VSS. On fees, VSS is cheaper at 0.07% per year. On volatility, VSS has been the lower-risk option at 6.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VIS or VSS?

Over the 10-year period, VIS has performed better with a 14.22% return vs 8.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VIS or VSS?

VSS is cheaper with a 0.07% expense ratio, compared with 0.09% for VIS.

Which ETF pays a higher dividend yield, VIS or VSS?

VSS has the higher dividend yield at 3.08%, compared with 0.88% for VIS.

What is the main difference between VIS and VSS?

VIS is categorized as Industrials Equities, while VSS is Foreign Small & Mid Cap Equities. VIS tracks MSCI US Investable Market Industrials 25/50 Index, while VSS tracks FTSE Global Small Cap ex US Index. Their fees differ too: 0.09% for VIS and 0.07% for VSS.

Which has better risk-adjusted returns?

VIS currently has the higher Sharpe Ratio (1.60 vs 1.51), 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.