VMCTX vs. FEQHX

Last updated Jun 26, 2026

VMCTX (Vanguard Mega Cap Index Fund Institutional Shares) and FEQHX (Fidelity Hedged Equity Fund) are both Large Cap Blend Equities funds. Over the past 3 years, VMCTX returned 21.84%/yr vs 16.16%/yr for FEQHX. With a 0.97 correlation, they move nearly in lockstep. VMCTX charges 0.06%/yr vs 0.55%/yr for FEQHX.

Performance

VMCTX vs. FEQHX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mega Cap Index Fund Institutional Shares (VMCTX) and Fidelity Hedged Equity Fund (FEQHX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VMCTX achieves a 7.20% return, which is significantly higher than FEQHX's 6.38% return.

VMCTX

• 1D: -0.26%
• 1M: -2.72%
• YTD: 7.20%
• 6M: 5.93%
• 1Y: 22.53%
• 3Y*: 21.84%
• 5Y*: 13.55%
• 10Y*: 16.32%

FEQHX

• 1D: -0.19%
• 1M: -2.34%
• YTD: 6.38%
• 6M: 5.11%
• 1Y: 16.36%
• 3Y*: 16.16%
• 5Y*: —
• 10Y*: —

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

VMCTX vs. FEQHX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
VMCTX Vanguard Mega Cap Index Fund Institutional Shares	7.20%	19.35%	27.18%	29.67%	-3.57%
FEQHX Fidelity Hedged Equity Fund	6.38%	13.61%	19.46%	17.65%	-4.85%

Correlation

The correlation between VMCTX and FEQHX is 0.98 - 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	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (All Time) Calculated using the full available price history since Sep 8, 2022	0.98

The correlation between VMCTX and FEQHX has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

Return for Risk

VMCTX vs. FEQHX — Risk / Return Rank

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

VMCTX

VMCTX Risk / Return Rank: 51
VMCTX Sharpe Ratio Rank: 52
VMCTX Sortino Ratio Rank: 48
VMCTX Omega Ratio Rank: 49
VMCTX Calmar Ratio Rank: 48
VMCTX Martin Ratio Rank: 59

FEQHX

FEQHX Risk / Return Rank: 45
FEQHX Sharpe Ratio Rank: 47
FEQHX Sortino Ratio Rank: 45
FEQHX Omega Ratio Rank: 45
FEQHX Calmar Ratio Rank: 44
FEQHX Martin Ratio Rank: 46

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.

VMCTX vs. FEQHX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mega Cap Index Fund Institutional Shares (VMCTX) and Fidelity Hedged Equity Fund (FEQHX). 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.

	VMCTX	FEQHX	Difference
Sharpe ratio: Return per unit of total volatility	1.75	1.67	+0.08
Sortino ratio: Return per unit of downside risk	2.40	2.34	+0.06
Omega ratio: Gain probability vs. loss probability	1.31	1.30	+0.02
Calmar ratio: Return relative to maximum drawdown	2.31	2.20	+0.12
Martin ratio: Return relative to average drawdown	9.95	8.37	+1.58

VMCTX vs. FEQHX - Sharpe Ratio Comparison

The current VMCTX Sharpe Ratio is 1.75, which is comparable to the FEQHX Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of VMCTX and FEQHX, 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

VMCTX vs. FEQHX - Drawdown Comparison

The maximum VMCTX drawdown since its inception was -52.00%, which is greater than FEQHX's maximum drawdown of -10.42%. Use the drawdown chart below to compare losses from any high point for VMCTX and FEQHX.

Drawdown Indicators

	VMCTX	FEQHX	Difference
Max Drawdown Largest peak-to-trough decline	-52.00%	-10.42%	-41.58%
Max Drawdown (1Y) Largest decline over 1 year	-9.87%	-7.40%	-2.47%
Max Drawdown (3Y) Largest decline over 3 years	-19.36%	-10.42%	-8.94%
Max Drawdown (5Y) Largest decline over 5 years	-25.77%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-32.96%	—	—
Current Drawdown Current decline from peak	-4.02%	-3.30%	-0.72%
Average Drawdown Average peak-to-trough decline	-7.07%	-2.22%	-4.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.29%	1.94%	+0.35%

Volatility

VMCTX vs. FEQHX - Volatility Comparison

Vanguard Mega Cap Index Fund Institutional Shares (VMCTX) has a higher volatility of 5.17% compared to Fidelity Hedged Equity Fund (FEQHX) at 4.10%. This indicates that VMCTX's price experiences larger fluctuations and is considered to be riskier than FEQHX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VMCTX	FEQHX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.17%	4.10%	+1.07%
Volatility (6M) Calculated over the trailing 6-month period	10.31%	7.50%	+2.81%
Volatility (1Y) Calculated over the trailing 1-year period	13.08%	9.79%	+3.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.46%	11.33%	+6.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.30%	11.33%	+6.97%

VMCTX vs. FEQHX - Expense Ratio Comparison

VMCTX has a 0.06% expense ratio, which is lower than FEQHX's 0.55% expense ratio.

Dividends

VMCTX vs. FEQHX - Dividend Comparison

VMCTX's dividend yield for the trailing twelve months is around 0.91%, more than FEQHX's 0.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FEQHX Fidelity Hedged Equity Fund	0.52%	0.43%	0.61%	0.77%	0.37%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VMCTX Vanguard Mega Cap Index Fund Institutional Shares	0.91%	0.94%	1.16%	1.36%	1.66%	1.18%	1.46%	1.82%	2.11%	1.84%	2.13%	2.13%

Frequently Asked Questions

Can I hold both VMCTX and FEQHX in my portfolio?

With a correlation of 0.98, VMCTX and FEQHX 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, VMCTX or FEQHX?

VMCTX has higher volatility (5.17%) compared to FEQHX (4.10%). In terms of maximum drawdown, VMCTX dropped -52.00% vs FEQHX's -10.42%.

Which has better risk-adjusted returns?

VMCTX currently has the higher Sharpe Ratio (1.75 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.