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VSEQX vs. VSMAX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VSEQX vs. VSMAX

Last updated Jun 13, 2026

VSEQX (Vanguard Strategic Equity Fund) and VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) are both mutual funds - VSEQX is a Mid Cap Blend Equities fund managed by Vanguard, while VSMAX is a Small Cap Blend Equities fund tracking the CRSP US Small Cap Index. Over the past 10 years, VSEQX returned 13.32%/yr vs 11.48%/yr for VSMAX. With a 0.98 correlation, they move nearly in lockstep. VSEQX charges 0.17%/yr vs 0.05%/yr for VSMAX.

Performance

VSEQX vs. VSMAX - Performance Comparison

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

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Returns By Period

In the year-to-date period, VSEQX achieves a 16.18% return, which is significantly higher than VSMAX's 14.59% return. Over the past 10 years, VSEQX has outperformed VSMAX with an annualized return of 13.32%, while VSMAX has yielded a comparatively lower 11.48% annualized return.

VSEQX

1D
2.25%
1M
3.52%
YTD
16.18%
6M
14.88%
1Y
34.58%
3Y*
20.51%
5Y*
11.68%
10Y*
13.32%

VSMAX

1D
2.58%
1M
3.08%
YTD
14.59%
6M
12.93%
1Y
27.91%
3Y*
16.37%
5Y*
6.83%
10Y*
11.48%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VSEQX vs. VSMAX - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VSEQX
Vanguard Strategic Equity Fund		16.18%15.32%16.67%19.31%-11.90%30.83%10.26%26.76%-11.86%12.36%
VSMAX
Vanguard Small-Cap Index Fund Admiral Shares		14.59%8.83%14.23%18.17%-17.61%17.74%19.06%27.36%-9.33%16.24%

Correlation

The correlation between VSEQX and VSMAX is 0.97 - 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

0.97

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

0.98

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

0.98

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

0.98

Correlation (All Time)
Calculated using the full available price history since Nov 13, 2000

0.98

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

VSEQX vs. VSMAX - Sectors Allocation Comparison

Sectors
VSEQX
VSMAX

Technology

17.5%
17.2%

Industrials

16.6%
20.8%

Financial Services

15.2%
12.6%

Healthcare

11.0%
11.1%

Consumer Cyclical

10.3%
11.3%

Real Estate

6.7%
7.6%

Energy

5.5%
4.7%

Basic Materials

4.9%
4.8%

Utilities

4.9%
3.3%

Communication Services

3.8%
3.1%

Consumer Defensive

3.6%
3.4%

Technology

VSEQX
17.5%
VSMAX
17.2%

Industrials

VSEQX
16.6%
VSMAX
20.8%

Financial Services

VSEQX
15.2%
VSMAX
12.6%

Healthcare

VSEQX
11.0%
VSMAX
11.1%

Consumer Cyclical

VSEQX
10.3%
VSMAX
11.3%

Real Estate

VSEQX
6.7%
VSMAX
7.6%

Energy

VSEQX
5.5%
VSMAX
4.7%

Basic Materials

VSEQX
4.9%
VSMAX
4.8%

Utilities

VSEQX
4.9%
VSMAX
3.3%

Communication Services

VSEQX
3.8%
VSMAX
3.1%

Consumer Defensive

VSEQX
3.6%
VSMAX
3.4%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Strategic Equity Fund

Vanguard Small-Cap Index Fund Admiral Shares

Often compared with VSEQX:
VSEQX vs. SCHMVSEQX vs. VFIAXVSEQX vs. VIMAXVSEQX vs. FOCKXVSEQX vs. VFMFXVSEQX vs. FCNTXVSEQX vs. VTI
Often compared with VSMAX:
VSMAX vs. VIMAXVSMAX vs. FSSNXVSMAX vs. VSGAXVSMAX vs. VBVSMAX vs. VOOVSMAX vs. VBRVSMAX vs. IWM

Return for Risk

VSEQX vs. VSMAX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VSEQX
VSEQX Risk / Return Rank: 8585
Overall Rank
VSEQX Sharpe Ratio Rank: 8282
Sharpe Ratio Rank
VSEQX Sortino Ratio Rank: 8080
Sortino Ratio Rank
VSEQX Omega Ratio Rank: 7575
Omega Ratio Rank
VSEQX Calmar Ratio Rank: 9494
Calmar Ratio Rank
VSEQX Martin Ratio Rank: 9494
Martin Ratio Rank
VSMAX
VSMAX Risk / Return Rank: 6262
Overall Rank
VSMAX Sharpe Ratio Rank: 5252
Sharpe Ratio Rank
VSMAX Sortino Ratio Rank: 5454
Sortino Ratio Rank
VSMAX Omega Ratio Rank: 4646
Omega Ratio Rank
VSMAX Calmar Ratio Rank: 8181
Calmar Ratio Rank
VSMAX Martin Ratio Rank: 7878
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.

VSEQX vs. VSMAX - Risk-Adjusted Trends Comparison

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

VSEQXVSMAXDifference
Sharpe ratioReturn per unit of total volatility
2.26
1.67

+0.59

Sortino ratioReturn per unit of downside risk
3.14
2.39

+0.74

Omega ratioGain probability vs. loss probability

1.39

1.29

+0.10

Calmar ratioReturn relative to maximum drawdown

4.58

3.11

+1.47

Martin ratioReturn relative to average drawdown

17.54

11.42

+6.12

VSEQX vs. VSMAX - Sharpe Ratio Comparison

The current VSEQX Sharpe Ratio is 2.26, which is higher than the VSMAX Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of VSEQX 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.

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Drawdowns

VSEQX vs. VSMAX - Drawdown Comparison

The maximum VSEQX drawdown since its inception was -63.55%, which is greater than VSMAX's maximum drawdown of -59.68%. Use the drawdown chart below to compare losses from any high point for VSEQX and VSMAX.

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Drawdown Indicators

VSEQXVSMAXDifference

Max Drawdown

Largest peak-to-trough decline

-63.55%

-59.68%

-3.87%

Max Drawdown (1Y)

Largest decline over 1 year

-7.60%

-8.97%

+1.37%

Max Drawdown (3Y)

Largest decline over 3 years

-24.73%

-25.25%

+0.52%

Max Drawdown (5Y)

Largest decline over 5 years

-24.73%

-28.14%

+3.41%

Max Drawdown (10Y)

Largest decline over 10 years

-44.08%

-41.82%

-2.26%

Current Drawdown

Current decline from peak

-0.07%

-0.32%

+0.25%

Average Drawdown

Average peak-to-trough decline

-9.06%

-9.68%

+0.62%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.98%

2.44%

-0.46%

Volatility

VSEQX vs. VSMAX - Volatility Comparison

The current volatility for Vanguard Strategic Equity Fund (VSEQX) is 4.65%, while Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) has a volatility of 5.47%. This indicates that VSEQX 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.

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Volatility by Period

VSEQXVSMAXDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.65%

5.47%

-0.82%

Volatility (6M)

Calculated over the trailing 6-month period

11.14%

12.32%

-1.18%

Volatility (1Y)

Calculated over the trailing 1-year period

15.37%

16.69%

-1.32%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

20.00%

20.77%

-0.77%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

21.43%

21.59%

-0.16%

VSEQX vs. VSMAX - Expense Ratio Comparison

VSEQX has a 0.17% 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

VSEQX vs. VSMAX - Dividend Comparison

VSEQX's dividend yield for the trailing twelve months is around 9.60%, more than VSMAX's 1.19% yield.

PositionTTM20252024202320222021202020192018201720162015
VSEQX
Vanguard Strategic Equity Fund		9.60%11.16%11.36%6.11%11.77%21.36%1.77%2.92%10.34%7.05%3.13%12.28%
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

With a correlation of 0.97, VSEQX 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.

VSMAX has higher volatility (5.47%) compared to VSEQX (4.65%). In terms of maximum drawdown, VSEQX dropped -63.55% vs VSMAX's -59.68%.

VSEQX currently has the higher Sharpe Ratio (2.26 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.

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