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VMCTX vs. VFIAX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

VMCTX vs. VFIAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mega Cap Index Fund Institutional Shares (VMCTX) and Vanguard 500 Index Fund Admiral Shares (VFIAX). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

The year-to-date returns for both investments are quite close, with VMCTX having a 11.68% return and VFIAX slightly higher at 11.69%. Over the past 10 years, VMCTX has outperformed VFIAX with an annualized return of 16.46%, while VFIAX has yielded a comparatively lower 15.63% annualized return.


VMCTX

1D
0.04%
1M
6.43%
YTD
11.68%
6M
11.63%
1Y
30.69%
3Y*
24.20%
5Y*
15.10%
10Y*
16.46%

VFIAX

1D
0.13%
1M
5.80%
YTD
11.69%
6M
11.73%
1Y
28.95%
3Y*
22.72%
5Y*
14.24%
10Y*
15.63%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VMCTX vs. VFIAX - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
VMCTX
Vanguard Mega Cap Index Fund Institutional Shares
11.68%19.35%27.18%29.67%-19.91%27.57%21.47%31.42%-3.47%22.57%
VFIAX
Vanguard 500 Index Fund Admiral Shares
11.69%17.83%24.97%26.24%-18.16%28.65%18.32%31.46%-4.45%21.78%

Correlation

The correlation between VMCTX and VFIAX is 0.99 - 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

0.99

Correlation (3Y)
Calculated over the trailing 3-year period

0.99

Correlation (5Y)
Calculated over the trailing 5-year period

0.99

Correlation (10Y)
Calculated over the trailing 10-year period

1.00

Correlation (All Time)
Calculated using the full available price history since Dec 28, 2007

1.00

The correlation between VMCTX and VFIAX has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.

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Return for Risk

VMCTX vs. VFIAX — Risk / Return Rank

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

VMCTX
VMCTX Risk / Return Rank: 7272
Overall Rank
VMCTX Sharpe Ratio Rank: 7878
Sharpe Ratio Rank
VMCTX Sortino Ratio Rank: 6969
Sortino Ratio Rank
VMCTX Omega Ratio Rank: 6868
Omega Ratio Rank
VMCTX Calmar Ratio Rank: 6868
Calmar Ratio Rank
VMCTX Martin Ratio Rank: 7676
Martin Ratio Rank

VFIAX
VFIAX Risk / Return Rank: 7373
Overall Rank
VFIAX Sharpe Ratio Rank: 7575
Sharpe Ratio Rank
VFIAX Sortino Ratio Rank: 6767
Sortino Ratio Rank
VFIAX Omega Ratio Rank: 6767
Omega Ratio Rank
VFIAX Calmar Ratio Rank: 7474
Calmar Ratio Rank
VFIAX Martin Ratio Rank: 8383
Martin Ratio Rank
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. VFIAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mega Cap Index Fund Institutional Shares (VMCTX) and Vanguard 500 Index Fund Admiral Shares (VFIAX). 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.


VMCTXVFIAXDifference
Sharpe ratioReturn per unit of total volatility

+0.04

Sortino ratioReturn per unit of downside risk

+0.05

Omega ratioGain probability vs. loss probability

1.46

1.46

0.00

Calmar ratioReturn relative to maximum drawdown

3.19

3.35

-0.16

Martin ratioReturn relative to average drawdown

14.39

15.66

-1.28

VMCTX vs. VFIAX - Sharpe Ratio Comparison

The current VMCTX Sharpe Ratio is 2.56, which is comparable to the VFIAX Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of VMCTX and VFIAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.


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Sharpe Ratios by Period


VMCTXVFIAXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.56

2.52

+0.04

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.88

0.85

+0.03

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.90

0.87

+0.04

Sharpe Ratio (All Time)

Calculated using the full available price history

0.59

0.47

+0.13

Drawdowns

VMCTX vs. VFIAX - Drawdown Comparison

The maximum VMCTX drawdown since its inception was -52.00%, smaller than the maximum VFIAX drawdown of -55.20%. Use the drawdown chart below to compare losses from any high point for VMCTX and VFIAX.


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Drawdown Indicators


VMCTXVFIAXDifference

Max Drawdown

Largest peak-to-trough decline

-52.00%

-55.20%

+3.20%

Max Drawdown (1Y)

Largest decline over 1 year

-9.87%

-8.90%

-0.97%

Max Drawdown (3Y)

Largest decline over 3 years

-19.36%

-18.75%

-0.61%

Max Drawdown (5Y)

Largest decline over 5 years

-25.77%

-24.53%

-1.24%

Max Drawdown (10Y)

Largest decline over 10 years

-32.96%

-33.83%

+0.87%

Current Drawdown

Current decline from peak

0.00%

0.00%

0.00%

Average Drawdown

Average peak-to-trough decline

-7.09%

-9.40%

+2.31%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.19%

1.90%

+0.29%

Volatility

VMCTX vs. VFIAX - Volatility Comparison

Vanguard Mega Cap Index Fund Institutional Shares (VMCTX) and Vanguard 500 Index Fund Admiral Shares (VFIAX) have volatilities of 2.93% and 2.82%, 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.


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Volatility by Period


VMCTXVFIAXDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.93%

2.82%

+0.11%

Volatility (6M)

Calculated over the trailing 6-month period

9.29%

8.98%

+0.31%

Volatility (1Y)

Calculated over the trailing 1-year period

12.32%

11.86%

+0.46%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.34%

16.90%

+0.44%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.28%

18.07%

+0.21%

VMCTX vs. VFIAX - Expense Ratio Comparison

VMCTX has a 0.06% expense ratio, which is higher than VFIAX's 0.04% 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

VMCTX vs. VFIAX - Dividend Comparison

VMCTX's dividend yield for the trailing twelve months is around 0.87%, less than VFIAX's 1.01% yield.


PositionTTM20252024202320222021202020192018201720162015
VFIAX
Vanguard 500 Index Fund Admiral Shares
1.01%1.12%1.24%1.45%1.68%1.24%1.53%1.87%2.05%1.78%2.02%2.10%
VMCTX
Vanguard Mega Cap Index Fund Institutional Shares
0.87%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


With a correlation of 0.99, VMCTX and VFIAX 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.

VMCTX has higher volatility (2.93%) compared to VFIAX (2.82%). In terms of maximum drawdown, VMCTX dropped -52.00% vs VFIAX's -55.20%.

VMCTX currently has the higher Sharpe Ratio (2.56 vs 2.52), 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.

Portfolio Optimizer

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