VSEQX vs. VIMSX

Last updated Jun 5, 2026

VSEQX (Vanguard Strategic Equity Fund) and VIMSX (Vanguard Mid Cap Index Fund) are both Mid Cap Blend Equities funds from Vanguard. Over the past 10 years, VSEQX returned 13.04%/yr vs 11.35%/yr for VIMSX. With a 0.96 correlation, they move nearly in lockstep. Both charge a 0.17% expense ratio.

Performance

VSEQX vs. VIMSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Strategic Equity Fund (VSEQX) and Vanguard Mid Cap Index Fund (VIMSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSEQX achieves a 15.17% return, which is significantly higher than VIMSX's 9.96% return. Over the past 10 years, VSEQX has outperformed VIMSX with an annualized return of 13.04%, while VIMSX has yielded a comparatively lower 11.35% annualized return.

VSEQX

• 1D: -0.76%
• 1M: 1.34%
• YTD: 15.17%
• 6M: 15.25%
• 1Y: 34.45%
• 3Y*: 21.05%
• 5Y*: 11.70%
• 10Y*: 13.04%

VIMSX

• 1D: -0.47%
• 1M: 2.36%
• YTD: 9.96%
• 6M: 9.37%
• 1Y: 18.37%
• 3Y*: 16.34%
• 5Y*: 7.63%
• 10Y*: 11.35%

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

VSEQX vs. VIMSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSEQX Vanguard Strategic Equity Fund	15.17%	15.32%	16.67%	19.31%	-11.90%	30.83%	10.26%	26.76%	-11.86%	12.36%
VIMSX Vanguard Mid Cap Index Fund	9.96%	11.08%	14.52%	16.40%	-18.80%	24.36%	18.04%	30.85%	-9.35%	19.12%

Correlation

The correlation between VSEQX and VIMSX 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	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since May 22, 1998	0.96

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

Return for Risk

VSEQX vs. VIMSX — Risk / Return Rank

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

VSEQX

VSEQX Risk / Return Rank: 69
VSEQX Sharpe Ratio Rank: 59
VSEQX Sortino Ratio Rank: 57
VSEQX Omega Ratio Rank: 52
VSEQX Calmar Ratio Rank: 89
VSEQX Martin Ratio Rank: 89

VIMSX

VIMSX Risk / Return Rank: 30
VIMSX Sharpe Ratio Rank: 27
VIMSX Sortino Ratio Rank: 26
VIMSX Omega Ratio Rank: 25
VIMSX Calmar Ratio Rank: 35
VIMSX Martin Ratio Rank: 39

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.

VSEQX vs. VIMSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Strategic Equity Fund (VSEQX) and Vanguard Mid Cap Index Fund (VIMSX). 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.

	VSEQX	VIMSX	Difference
Sharpe ratio: Return per unit of total volatility	2.28	1.47	+0.80
Sortino ratio: Return per unit of downside risk	3.17	2.12	+1.05
Omega ratio: Gain probability vs. loss probability	1.40	1.26	+0.14
Calmar ratio: Return relative to maximum drawdown	4.51	2.23	+2.28
Martin ratio: Return relative to average drawdown	17.34	8.45	+8.89
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VSEQX vs. VIMSX - Sharpe Ratio Comparison

The current VSEQX Sharpe Ratio is 2.28, which is higher than the VIMSX Sharpe Ratio of 1.47. The chart below compares the historical Sharpe Ratios of VSEQX and VIMSX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VSEQX	VIMSX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.28	1.47	+0.80
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.59	0.43	+0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.61	0.60	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.48	+0.02

Drawdowns

VSEQX vs. VIMSX - Drawdown Comparison

The maximum VSEQX drawdown since its inception was -63.55%, which is greater than VIMSX's maximum drawdown of -58.96%. Use the drawdown chart below to compare losses from any high point for VSEQX and VIMSX.

Drawdown Indicators

	VSEQX	VIMSX	Difference
Max Drawdown Largest peak-to-trough decline	-63.55%	-58.96%	-4.59%
Max Drawdown (1Y) Largest decline over 1 year	-7.60%	-8.14%	+0.54%
Max Drawdown (3Y) Largest decline over 3 years	-24.73%	-19.31%	-5.42%
Max Drawdown (5Y) Largest decline over 5 years	-24.73%	-27.63%	+2.90%
Max Drawdown (10Y) Largest decline over 10 years	-44.08%	-39.29%	-4.79%
Current Drawdown Current decline from peak	-0.76%	-0.47%	-0.29%
Average Drawdown Average peak-to-trough decline	-9.06%	-8.07%	-0.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.97%	2.14%	-0.17%

Volatility

VSEQX vs. VIMSX - Volatility Comparison

Vanguard Strategic Equity Fund (VSEQX) has a higher volatility of 3.71% compared to Vanguard Mid Cap Index Fund (VIMSX) at 3.02%. This indicates that VSEQX's price experiences larger fluctuations and is considered to be riskier than VIMSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSEQX	VIMSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.71%	3.02%	+0.69%
Volatility (6M) Calculated over the trailing 6-month period	10.63%	9.26%	+1.37%
Volatility (1Y) Calculated over the trailing 1-year period	15.05%	12.31%	+2.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.95%	17.64%	+2.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.42%	18.92%	+2.50%

VSEQX vs. VIMSX - Expense Ratio Comparison

Both VSEQX and VIMSX have an expense ratio of 0.17%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VSEQX vs. VIMSX - Dividend Comparison

VSEQX's dividend yield for the trailing twelve months is around 9.69%, more than VIMSX's 1.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VIMSX Vanguard Mid Cap Index Fund	1.24%	1.03%	1.37%	1.39%	1.46%	1.00%	1.34%	1.37%	1.68%	1.24%	1.34%	1.33%
VSEQX Vanguard Strategic Equity Fund	9.69%	11.16%	11.36%	6.11%	11.77%	21.36%	1.77%	2.92%	10.34%	7.05%	3.13%	12.28%

Frequently Asked Questions

Can I hold both VSEQX and VIMSX in my portfolio?

With a correlation of 0.93, VSEQX and VIMSX 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, VSEQX or VIMSX?

VSEQX has higher volatility (3.71%) compared to VIMSX (3.02%). In terms of maximum drawdown, VSEQX dropped -63.55% vs VIMSX's -58.96%.

Which has better risk-adjusted returns?

VSEQX currently has the higher Sharpe Ratio (2.28 vs 1.47), 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.