VSMIX vs. VSCAX

Last updated Jun 23, 2026

VSMIX (Vanguard Short-Term Investment-Grade Fund Investor Shares) and VSCAX (Invesco Small Cap Value Fund) are both mutual funds - VSMIX is a Short-Term Bond fund managed by Vanguard, while VSCAX is a Small Cap Value Equities fund managed by Invesco. Over the past 10 years, VSMIX returned 18.15%/yr vs 17.88%/yr for VSCAX. With a 1.00 correlation, they move nearly in lockstep. VSMIX charges 0.20%/yr vs 1.12%/yr for VSCAX.

Performance

VSMIX vs. VSCAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Investment-Grade Fund Investor Shares (VSMIX) and Invesco Small Cap Value Fund (VSCAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with VSMIX having a 31.54% return and VSCAX slightly lower at 31.37%. Both investments have delivered pretty close results over the past 10 years, with VSMIX having a 18.15% annualized return and VSCAX not far behind at 17.88%.

VSMIX

• 1D: 2.24%
• 1M: 4.85%
• YTD: 31.54%
• 6M: 29.29%
• 1Y: 60.44%
• 3Y*: 31.32%
• 5Y*: 21.50%
• 10Y*: 18.15%

VSCAX

• 1D: 2.24%
• 1M: 4.82%
• YTD: 31.37%
• 6M: 29.13%
• 1Y: 60.07%
• 3Y*: 30.99%
• 5Y*: 21.19%
• 10Y*: 17.88%

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

VSMIX vs. VSCAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSMIX Vanguard Short-Term Investment-Grade Fund Investor Shares	31.54%	18.01%	24.82%	23.14%	4.58%	36.67%	11.14%	32.32%	-25.45%	18.47%
VSCAX Invesco Small Cap Value Fund	31.37%	17.70%	24.54%	22.84%	4.31%	36.34%	10.81%	32.02%	-25.64%	18.17%

Correlation

The correlation between VSMIX and VSCAX is 1.00 - 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	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Aug 12, 2005	1.00

The correlation between VSMIX and VSCAX has been stable across timeframes, ranging from 1.00 to 1.00 - a consistent structural relationship.

Return for Risk

VSMIX vs. VSCAX — Risk / Return Rank

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

VSMIX

VSMIX Risk / Return Rank: 87
VSMIX Sharpe Ratio Rank: 91
VSMIX Sortino Ratio Rank: 80
VSMIX Omega Ratio Rank: 77
VSMIX Calmar Ratio Rank: 95
VSMIX Martin Ratio Rank: 93

VSCAX

VSCAX Risk / Return Rank: 87
VSCAX Sharpe Ratio Rank: 90
VSCAX Sortino Ratio Rank: 79
VSCAX Omega Ratio Rank: 77
VSCAX Calmar Ratio Rank: 95
VSCAX Martin Ratio Rank: 93

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.

VSMIX vs. VSCAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Investment-Grade Fund Investor Shares (VSMIX) and Invesco Small Cap Value Fund (VSCAX). 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.

	VSMIX	VSCAX	Difference
Sharpe ratio: Return per unit of total volatility	2.78	2.77	+0.02
Sortino ratio: Return per unit of downside risk	3.46	3.43	+0.02
Omega ratio: Gain probability vs. loss probability	1.46	1.46	0.00
Calmar ratio: Return relative to maximum drawdown	5.31	5.26	+0.05
Martin ratio: Return relative to average drawdown	18.51	18.31	+0.20

VSMIX vs. VSCAX - Sharpe Ratio Comparison

The current VSMIX Sharpe Ratio is 2.78, which is comparable to the VSCAX Sharpe Ratio of 2.77. The chart below compares the historical Sharpe Ratios of VSMIX and VSCAX, 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

VSMIX vs. VSCAX - Drawdown Comparison

The maximum VSMIX drawdown since its inception was -57.53%, roughly equal to the maximum VSCAX drawdown of -57.77%. Use the drawdown chart below to compare losses from any high point for VSMIX and VSCAX.

Drawdown Indicators

	VSMIX	VSCAX	Difference
Max Drawdown Largest peak-to-trough decline	-57.53%	-57.77%	+0.24%
Max Drawdown (1Y) Largest decline over 1 year	-11.39%	-11.43%	+0.04%
Max Drawdown (3Y) Largest decline over 3 years	-25.26%	-25.29%	+0.03%
Max Drawdown (5Y) Largest decline over 5 years	-25.26%	-25.29%	+0.03%
Max Drawdown (10Y) Largest decline over 10 years	-57.53%	-57.77%	+0.24%
Current Drawdown Current decline from peak	-0.35%	-0.39%	+0.04%
Average Drawdown Average peak-to-trough decline	-9.50%	-8.88%	-0.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.26%	3.27%	-0.01%

Volatility

VSMIX vs. VSCAX - Volatility Comparison

Vanguard Short-Term Investment-Grade Fund Investor Shares (VSMIX) and Invesco Small Cap Value Fund (VSCAX) have volatilities of 8.94% and 8.95%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSMIX	VSCAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.94%	8.95%	-0.01%
Volatility (6M) Calculated over the trailing 6-month period	17.06%	17.04%	+0.02%
Volatility (1Y) Calculated over the trailing 1-year period	21.74%	21.72%	+0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.34%	23.33%	+0.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.78%	26.80%	-0.02%

VSMIX vs. VSCAX - Expense Ratio Comparison

VSMIX has a 0.20% expense ratio, which is lower than VSCAX's 1.12% expense ratio.

Dividends

VSMIX vs. VSCAX - Dividend Comparison

VSMIX's dividend yield for the trailing twelve months is around 6.49%, less than VSCAX's 7.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VSCAX Invesco Small Cap Value Fund	7.02%	9.22%	7.90%	4.93%	10.12%	16.90%	0.30%	2.53%	28.45%	16.65%	1.71%	11.08%
VSMIX Vanguard Short-Term Investment-Grade Fund Investor Shares	6.49%	8.53%	7.40%	4.71%	9.53%	15.84%	0.40%	2.37%	26.83%	15.94%	1.65%	10.91%

Frequently Asked Questions

Can I hold both VSMIX and VSCAX in my portfolio?

With a correlation of 1.00, VSMIX and VSCAX 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, VSMIX or VSCAX?

VSCAX has higher volatility (8.95%) compared to VSMIX (8.94%). In terms of maximum drawdown, VSMIX dropped -57.53% vs VSCAX's -57.77%.

Which has better risk-adjusted returns?

VSMIX currently has the higher Sharpe Ratio (2.78 vs 2.77), 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.