VO vs. VSMAX

Last updated Jun 23, 2026

VO (Vanguard Mid-Cap ETF) and VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) are both funds - VO is a Mid Cap Blend Equities fund tracking the CRSP US Mid Cap Index, while VSMAX is a Small Cap Blend Equities fund tracking the CRSP US Small Cap Index. Both are passively managed. Over the past 10 years, VO returned 12.03%/yr vs 11.47%/yr for VSMAX. With a 0.95 correlation, they move nearly in lockstep. VO charges 0.03%/yr vs 0.05%/yr for VSMAX.

Performance

VO vs. VSMAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mid-Cap ETF (VO) 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, VO achieves a 11.30% return, which is significantly lower than VSMAX's 15.43% return. Both investments have delivered pretty close results over the past 10 years, with VO having a 12.03% annualized return and VSMAX not far behind at 11.47%.

VO

• 1D: 0.44%
• 1M: 3.04%
• YTD: 11.30%
• 6M: 9.77%
• 1Y: 19.89%
• 3Y*: 16.59%
• 5Y*: 8.06%
• 10Y*: 12.03%

VSMAX

• 1D: 1.27%
• 1M: 2.62%
• YTD: 15.43%
• 6M: 12.70%
• 1Y: 29.88%
• 3Y*: 16.29%
• 5Y*: 7.86%
• 10Y*: 11.47%

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

VO vs. VSMAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VO Vanguard Mid-Cap ETF	11.30%	11.62%	15.31%	16.03%	-18.73%	24.70%	18.10%	30.98%	-9.24%	19.28%
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	15.43%	8.83%	14.23%	18.17%	-17.61%	17.74%	19.06%	27.36%	-9.33%	16.24%

Correlation

The correlation between VO and VSMAX is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.95

The correlation between VO and VSMAX has been stable across timeframes, ranging from 0.93 to 0.96 - a consistent structural relationship.

VO vs. VSMAX - Sectors Allocation Comparison

Sectors	VO	VSMAX
Technology	20.8%	18.8%
Industrials	17.7%	20.7%
Financial Services	12.5%	11.9%
Consumer Cyclical	8.6%	10.3%
Utilities	7.9%	3.1%
Energy	7.9%	4.7%
Healthcare	7.5%	11.0%
Real Estate	5.1%	7.1%
Consumer Defensive	4.7%	3.4%
Basic Materials	4.0%	4.7%
Communication Services	3.0%	2.7%

Return for Risk

VO vs. VSMAX — Risk / Return Rank

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

VO

VO Risk / Return Rank: 48
VO Sharpe Ratio Rank: 46
VO Sortino Ratio Rank: 46
VO Omega Ratio Rank: 43
VO Calmar Ratio Rank: 51
VO Martin Ratio Rank: 55

VSMAX

VSMAX Risk / Return Rank: 55
VSMAX Sharpe Ratio Rank: 45
VSMAX Sortino Ratio Rank: 44
VSMAX Omega Ratio Rank: 40
VSMAX Calmar Ratio Rank: 78
VSMAX Martin Ratio Rank: 68

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.

VO vs. VSMAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mid-Cap ETF (VO) 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.

	VO	VSMAX	Difference
Sharpe ratio: Return per unit of total volatility	1.56	1.81	-0.24
Sortino ratio: Return per unit of downside risk	2.23	2.57	-0.35
Omega ratio: Gain probability vs. loss probability	1.27	1.31	-0.04
Calmar ratio: Return relative to maximum drawdown	2.45	3.36	-0.91
Martin ratio: Return relative to average drawdown	9.23	12.34	-3.11

VO vs. VSMAX - Sharpe Ratio Comparison

The current VO Sharpe Ratio is 1.56, which is comparable to the VSMAX Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of VO 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

VO vs. VSMAX - Drawdown Comparison

The maximum VO drawdown since its inception was -58.87%, roughly equal to the maximum VSMAX drawdown of -59.68%. Use the drawdown chart below to compare losses from any high point for VO and VSMAX.

Drawdown Indicators

	VO	VSMAX	Difference
Max Drawdown Largest peak-to-trough decline	-58.87%	-59.68%	+0.81%
Max Drawdown (1Y) Largest decline over 1 year	-8.17%	-8.97%	+0.80%
Max Drawdown (3Y) Largest decline over 3 years	-19.02%	-25.25%	+6.23%
Max Drawdown (5Y) Largest decline over 5 years	-27.57%	-28.14%	+0.57%
Max Drawdown (10Y) Largest decline over 10 years	-39.37%	-41.82%	+2.45%
Current Drawdown Current decline from peak	-0.45%	-0.57%	+0.12%
Average Drawdown Average peak-to-trough decline	-7.85%	-9.68%	+1.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.16%	2.43%	-0.27%

Volatility

VO vs. VSMAX - Volatility Comparison

The current volatility for Vanguard Mid-Cap ETF (VO) is 4.35%, while Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) has a volatility of 5.30%. This indicates that VO 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

	VO	VSMAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.35%	5.30%	-0.95%
Volatility (6M) Calculated over the trailing 6-month period	9.80%	12.24%	-2.44%
Volatility (1Y) Calculated over the trailing 1-year period	12.80%	16.65%	-3.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.66%	20.77%	-3.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.98%	21.59%	-2.61%

VO vs. VSMAX - Expense Ratio Comparison

VO has a 0.03% expense ratio, which is lower than VSMAX's 0.05% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VO vs. VSMAX - Dividend Comparison

VO's dividend yield for the trailing twelve months is around 1.35%, more than VSMAX's 1.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VO Vanguard Mid-Cap ETF	1.35%	1.52%	1.49%	1.52%	1.60%	1.12%	1.45%	1.48%	1.82%	1.35%	1.45%	1.47%
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	1.18%	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 VO and VSMAX in my portfolio?

With a correlation of 0.93, VO and VSMAX 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, VO or VSMAX?

VSMAX has higher volatility (5.30%) compared to VO (4.35%). In terms of maximum drawdown, VO dropped -58.87% vs VSMAX's -59.68%.

Which has better risk-adjusted returns?

VSMAX currently has the higher Sharpe Ratio (1.81 vs 1.56), 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.