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VSMAX vs. VSEQX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VSMAX vs. VSEQX

Last updated Jun 13, 2026

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

Performance

VSMAX vs. VSEQX - 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 Strategic Equity Fund (VSEQX). 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 lower than VSEQX's 16.18% return. Over the past 10 years, VSMAX has underperformed VSEQX with an annualized return of 11.48%, while VSEQX has yielded a comparatively higher 13.32% annualized return.

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%

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

VSMAX vs. VSEQX - 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%
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%

Correlation

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

VSMAX vs. VSEQX - Sectors Allocation Comparison

Sectors
VSMAX
VSEQX

Industrials

20.8%
16.6%

Technology

17.2%
17.5%

Financial Services

12.6%
15.2%

Consumer Cyclical

11.3%
10.3%

Healthcare

11.1%
11.0%

Real Estate

7.6%
6.7%

Basic Materials

4.8%
4.9%

Energy

4.7%
5.5%

Consumer Defensive

3.4%
3.6%

Utilities

3.3%
4.9%

Communication Services

3.1%
3.8%

Industrials

VSMAX
20.8%
VSEQX
16.6%

Technology

VSMAX
17.2%
VSEQX
17.5%

Financial Services

VSMAX
12.6%
VSEQX
15.2%

Consumer Cyclical

VSMAX
11.3%
VSEQX
10.3%

Healthcare

VSMAX
11.1%
VSEQX
11.0%

Real Estate

VSMAX
7.6%
VSEQX
6.7%

Basic Materials

VSMAX
4.8%
VSEQX
4.9%

Energy

VSMAX
4.7%
VSEQX
5.5%

Consumer Defensive

VSMAX
3.4%
VSEQX
3.6%

Utilities

VSMAX
3.3%
VSEQX
4.9%

Communication Services

VSMAX
3.1%
VSEQX
3.8%

Compare stocks, funds, or ETFs

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Vanguard Small-Cap Index Fund Admiral Shares

Vanguard Strategic Equity Fund

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

Return for Risk

VSMAX vs. VSEQX — 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
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
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. VSEQX - 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 Strategic Equity Fund (VSEQX). 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.

VSMAXVSEQXDifference
Sharpe ratioReturn per unit of total volatility
1.67
2.26

-0.59

Sortino ratioReturn per unit of downside risk
2.39
3.14

-0.74

Omega ratioGain probability vs. loss probability

1.29

1.39

-0.10

Calmar ratioReturn relative to maximum drawdown

3.11

4.58

-1.47

Martin ratioReturn relative to average drawdown

11.42

17.54

-6.12

VSMAX vs. VSEQX - Sharpe Ratio Comparison

The current VSMAX Sharpe Ratio is 1.67, which is comparable to the VSEQX Sharpe Ratio of 2.26. The chart below compares the historical Sharpe Ratios of VSMAX and VSEQX, 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. VSEQX - Drawdown Comparison

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

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Drawdown Indicators

VSMAXVSEQXDifference

Max Drawdown

Largest peak-to-trough decline

-59.68%

-63.55%

+3.87%

Max Drawdown (1Y)

Largest decline over 1 year

-8.97%

-7.60%

-1.37%

Max Drawdown (3Y)

Largest decline over 3 years

-25.25%

-24.73%

-0.52%

Max Drawdown (5Y)

Largest decline over 5 years

-28.14%

-24.73%

-3.41%

Max Drawdown (10Y)

Largest decline over 10 years

-41.82%

-44.08%

+2.26%

Current Drawdown

Current decline from peak

-0.32%

-0.07%

-0.25%

Average Drawdown

Average peak-to-trough decline

-9.68%

-9.06%

-0.62%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.44%

1.98%

+0.46%

Volatility

VSMAX vs. VSEQX - Volatility Comparison

Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) has a higher volatility of 5.47% compared to Vanguard Strategic Equity Fund (VSEQX) at 4.65%. This indicates that VSMAX's price experiences larger fluctuations and is considered to be riskier than VSEQX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VSMAXVSEQXDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.47%

4.65%

+0.82%

Volatility (6M)

Calculated over the trailing 6-month period

12.32%

11.14%

+1.18%

Volatility (1Y)

Calculated over the trailing 1-year period

16.69%

15.37%

+1.32%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

20.77%

20.00%

+0.77%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

21.59%

21.43%

+0.16%

VSMAX vs. VSEQX - Expense Ratio Comparison

VSMAX has a 0.05% expense ratio, which is lower than VSEQX's 0.17% 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. VSEQX - Dividend Comparison

VSMAX's dividend yield for the trailing twelve months is around 1.19%, less than VSEQX's 9.60% 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, VSMAX and VSEQX 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, VSMAX dropped -59.68% vs VSEQX's -63.55%.

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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