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VSMAX vs. VEMAX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VSMAX vs. VEMAX

Last updated Jun 13, 2026

VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) and VEMAX (Vanguard Emerging Markets Stock Index Fund Admiral Shares) are both mutual funds - VSMAX is a Small Cap Blend Equities fund tracking the CRSP US Small Cap Index, while VEMAX is a Emerging Markets Equities fund tracking the FTSE Emerging Markets All Cap China A Inclusion Index. Both are passively managed. Over the past 10 years, VSMAX returned 11.48%/yr vs 8.79%/yr for VEMAX. A 0.68 correlation means they provide meaningful diversification when combined. VSMAX charges 0.05%/yr vs 0.13%/yr for VEMAX.

Performance

VSMAX vs. VEMAX - Performance Comparison

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

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Returns By Period

In the year-to-date period, VSMAX achieves a 14.59% return, which is significantly higher than VEMAX's 9.86% return. Over the past 10 years, VSMAX has outperformed VEMAX with an annualized return of 11.48%, while VEMAX has yielded a comparatively lower 8.79% annualized return.

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%

VEMAX

1D
2.25%
1M
-1.61%
YTD
9.86%
6M
11.36%
1Y
25.51%
3Y*
16.48%
5Y*
4.76%
10Y*
8.79%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VSMAX vs. VEMAX - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
VEMAX
Vanguard Emerging Markets Stock Index Fund Admiral Shares		9.86%24.76%11.34%8.82%-17.79%0.85%15.24%20.29%-14.59%31.37%

Correlation

The correlation between VSMAX and VEMAX is 0.61, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.61

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

0.57

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

0.60

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

0.61

Correlation (All Time)
Calculated using the full available price history since Jun 23, 2006

0.68

The correlation between VSMAX and VEMAX shifts across timeframes, from 0.57 (3 years) to 0.68 (all time), reflecting how their relationship changes across market environments.

VSMAX vs. VEMAX - Sectors Allocation Comparison

Sectors
VSMAX
VEMAX

Industrials

20.8%
8.0%

Technology

17.2%
29.6%

Financial Services

12.6%
19.5%

Consumer Cyclical

11.3%
10.7%

Healthcare

11.1%
3.9%

Real Estate

7.6%
2.2%

Basic Materials

4.8%
8.0%

Energy

4.7%
4.6%

Consumer Defensive

3.4%
3.7%

Utilities

3.3%
2.9%

Communication Services

3.1%
7.1%

Industrials

VSMAX
20.8%
VEMAX
8.0%

Technology

VSMAX
17.2%
VEMAX
29.6%

Financial Services

VSMAX
12.6%
VEMAX
19.5%

Consumer Cyclical

VSMAX
11.3%
VEMAX
10.7%

Healthcare

VSMAX
11.1%
VEMAX
3.9%

Real Estate

VSMAX
7.6%
VEMAX
2.2%

Basic Materials

VSMAX
4.8%
VEMAX
8.0%

Energy

VSMAX
4.7%
VEMAX
4.6%

Consumer Defensive

VSMAX
3.4%
VEMAX
3.7%

Utilities

VSMAX
3.3%
VEMAX
2.9%

Communication Services

VSMAX
3.1%
VEMAX
7.1%

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Vanguard Small-Cap Index Fund Admiral Shares

Vanguard Emerging Markets Stock Index Fund Admiral Shares

Often compared with VSMAX:
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Often compared with VEMAX:
VEMAX vs. VWOVEMAX vs. VTMGXVEMAX vs. VFIAXVEMAX vs. FPADXVEMAX vs. FEMKXVEMAX vs. FSPSXVEMAX vs. VINEX

Return for Risk

VSMAX vs. VEMAX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
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
VEMAX
VEMAX Risk / Return Rank: 4747
Overall Rank
VEMAX Sharpe Ratio Rank: 4747
Sharpe Ratio Rank
VEMAX Sortino Ratio Rank: 4646
Sortino Ratio Rank
VEMAX Omega Ratio Rank: 4848
Omega Ratio Rank
VEMAX Calmar Ratio Rank: 4747
Calmar Ratio Rank
VEMAX Martin Ratio Rank: 4545
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.

VSMAX vs. VEMAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) and Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX). 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.

VSMAXVEMAXDifference
Sharpe ratioReturn per unit of total volatility
1.67
1.59

+0.08

Sortino ratioReturn per unit of downside risk
2.39
2.22

+0.17

Omega ratioGain probability vs. loss probability

1.29

1.29

0.00

Calmar ratioReturn relative to maximum drawdown

3.11

2.15

+0.96

Martin ratioReturn relative to average drawdown

11.42

7.83

+3.59

VSMAX vs. VEMAX - Sharpe Ratio Comparison

The current VSMAX Sharpe Ratio is 1.67, which is comparable to the VEMAX Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of VSMAX and VEMAX, 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

VSMAX vs. VEMAX - Drawdown Comparison

The maximum VSMAX drawdown since its inception was -59.68%, smaller than the maximum VEMAX drawdown of -66.45%. Use the drawdown chart below to compare losses from any high point for VSMAX and VEMAX.

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Drawdown Indicators

VSMAXVEMAXDifference

Max Drawdown

Largest peak-to-trough decline

-59.68%

-66.45%

+6.77%

Max Drawdown (1Y)

Largest decline over 1 year

-8.97%

-11.05%

+2.08%

Max Drawdown (3Y)

Largest decline over 3 years

-25.25%

-15.78%

-9.47%

Max Drawdown (5Y)

Largest decline over 5 years

-28.14%

-32.46%

+4.32%

Max Drawdown (10Y)

Largest decline over 10 years

-41.82%

-36.11%

-5.71%

Current Drawdown

Current decline from peak

-0.32%

-3.60%

+3.28%

Average Drawdown

Average peak-to-trough decline

-9.68%

-16.10%

+6.42%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.44%

3.03%

-0.59%

Volatility

VSMAX vs. VEMAX - Volatility Comparison

The current volatility for Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) is 5.47%, while Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX) has a volatility of 6.17%. This indicates that VSMAX experiences smaller price fluctuations and is considered to be less risky than VEMAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VSMAXVEMAXDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.47%

6.17%

-0.70%

Volatility (6M)

Calculated over the trailing 6-month period

12.32%

12.65%

-0.33%

Volatility (1Y)

Calculated over the trailing 1-year period

16.69%

14.97%

+1.72%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

20.77%

15.50%

+5.27%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

21.59%

16.49%

+5.10%

VSMAX vs. VEMAX - Expense Ratio Comparison

VSMAX has a 0.05% expense ratio, which is lower than VEMAX's 0.13% 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

VSMAX vs. VEMAX - Dividend Comparison

VSMAX's dividend yield for the trailing twelve months is around 1.19%, less than VEMAX's 2.42% yield.

PositionTTM20252024202320222021202020192018201720162015
VEMAX
Vanguard Emerging Markets Stock Index Fund Admiral Shares		2.42%2.74%3.13%3.47%4.05%2.57%1.87%3.20%2.85%2.31%2.51%3.25%
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

VSMAX and VEMAX have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VEMAX has higher volatility (6.17%) compared to VSMAX (5.47%). In terms of maximum drawdown, VSMAX dropped -59.68% vs VEMAX's -66.45%.

VSMAX currently has the higher Sharpe Ratio (1.67 vs 1.59), 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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