VMFXX vs. VSMAX

Last updated Jun 13, 2026

VMFXX (Vanguard Federal Money Market Fund) and VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) are both mutual funds - VMFXX is a Money Market fund managed by Vanguard, while VSMAX is a Small Cap Blend Equities fund tracking the CRSP US Small Cap Index. Over the past 5 years, VMFXX returned 2.39%/yr vs 6.83%/yr for VSMAX. At a 0.03 correlation, their price movements are largely independent. VMFXX charges 0.11%/yr vs 0.05%/yr for VSMAX.

Performance

VMFXX vs. VSMAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Federal Money Market Fund (VMFXX) 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, VMFXX achieves a 1.50% return, which is significantly lower than VSMAX's 14.59% return.

VMFXX

• 1D: 0.00%
• 1M: 0.30%
• YTD: 1.50%
• 6M: 1.82%
• 1Y: 3.95%
• 3Y*: 3.35%
• 5Y*: 2.39%
• 10Y*: —

VSMAX

• 1D: 2.58%
• 1M: 2.57%
• YTD: 14.59%
• 6M: 12.93%
• 1Y: 30.00%
• 3Y*: 16.37%
• 5Y*: 6.83%
• 10Y*: 11.48%

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

VMFXX vs. VSMAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VMFXX Vanguard Federal Money Market Fund	1.50%	4.24%	1.64%	4.64%	0.00%	0.00%
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	14.59%	8.83%	14.23%	18.17%	-17.61%	4.13%

Correlation

The correlation between VMFXX and VSMAX is -0.02, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.02
Correlation (3Y) Calculated over the trailing 3-year period	0.01
Correlation (5Y) Calculated over the trailing 5-year period	0.03
Correlation (All Time) Calculated using the full available price history since May 25, 2021	0.03

VMFXX vs. VSMAX - Sectors Allocation Comparison

Sectors	VMFXX	VSMAX
Financial Services	17.5%	12.6%
Basic Materials	-	4.8%
Communication Services	-	3.1%
Consumer Cyclical	-	11.3%
Consumer Defensive	-	3.4%
Energy	-	4.7%
Healthcare	-	11.1%
Industrials	-	20.8%
Real Estate	-	7.6%
Technology	-	17.2%
Utilities	-	3.3%

Return for Risk

VMFXX vs. VSMAX — Risk / Return Rank

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

VMFXX

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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.

VMFXX vs. VSMAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Federal Money Market Fund (VMFXX) 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.

	VMFXX	VSMAX	Difference
Sharpe ratio: Return per unit of total volatility	3.67	1.67	+2.00
Sortino ratio: Return per unit of downside risk	—	2.39	—
Omega ratio: Gain probability vs. loss probability	—	1.29	—
Calmar ratio: Return relative to maximum drawdown	—	3.11	—
Martin ratio: Return relative to average drawdown	—	11.42	—

VMFXX vs. VSMAX - Sharpe Ratio Comparison

The current VMFXX Sharpe Ratio is 3.67, which is higher than the VSMAX Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of VMFXX 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

VMFXX vs. VSMAX - Drawdown Comparison

The maximum VMFXX drawdown since its inception was 0.00%, smaller than the maximum VSMAX drawdown of -59.68%. Use the drawdown chart below to compare losses from any high point for VMFXX and VSMAX.

Drawdown Indicators

	VMFXX	VSMAX	Difference
Max Drawdown Largest peak-to-trough decline	0.00%	-59.68%	+59.68%
Max Drawdown (1Y) Largest decline over 1 year	0.00%	-8.97%	+8.97%
Max Drawdown (3Y) Largest decline over 3 years	0.00%	-25.25%	+25.25%
Max Drawdown (5Y) Largest decline over 5 years	0.00%	-28.14%	+28.14%
Max Drawdown (10Y) Largest decline over 10 years	—	-41.82%	—
Current Drawdown Current decline from peak	0.00%	-0.32%	+0.32%
Average Drawdown Average peak-to-trough decline	0.00%	-9.68%	+9.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.00%	2.44%	-2.44%

Volatility

VMFXX vs. VSMAX - Volatility Comparison

The current volatility for Vanguard Federal Money Market Fund (VMFXX) is 0.30%, while Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) has a volatility of 5.47%. This indicates that VMFXX experiences smaller price fluctuations and is considered to be less risky than VSMAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VMFXX	VSMAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.30%	5.47%	-5.17%
Volatility (6M) Calculated over the trailing 6-month period	0.79%	12.32%	-11.53%
Volatility (1Y) Calculated over the trailing 1-year period	1.12%	16.69%	-15.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.94%	20.77%	-19.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.94%	21.59%	-20.65%

VMFXX vs. VSMAX - Expense Ratio Comparison

VMFXX has a 0.11% 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

VMFXX vs. VSMAX - Dividend Comparison

VMFXX's dividend yield for the trailing twelve months is around 3.87%, more than VSMAX's 1.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VMFXX Vanguard Federal Money Market Fund	3.87%	4.14%	1.63%	4.53%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 VMFXX and VSMAX in my portfolio?

VMFXX and VSMAX have a correlation of -0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VMFXX or VSMAX?

VSMAX has higher volatility (5.47%) compared to VMFXX (0.30%). In terms of maximum drawdown, VMFXX dropped 0.00% vs VSMAX's -59.68%.

Which has better risk-adjusted returns?

VMFXX currently has the higher Sharpe Ratio (3.67 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.