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VSMSX vs. VFIAX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

VSMSX vs. VFIAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard S&P Small-Cap 600 Index Fund Institutional Shares (VSMSX) and Vanguard 500 Index Fund Admiral Shares (VFIAX). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VSMSX achieves a 16.33% return, which is significantly higher than VFIAX's 11.69% return. Over the past 10 years, VSMSX has underperformed VFIAX with an annualized return of 10.81%, while VFIAX has yielded a comparatively higher 15.63% annualized return.


VSMSX

1D
0.88%
1M
2.59%
YTD
16.33%
6M
15.18%
1Y
32.75%
3Y*
14.78%
5Y*
5.90%
10Y*
10.81%

VFIAX

1D
0.13%
1M
5.80%
YTD
11.69%
6M
11.73%
1Y
28.95%
3Y*
22.72%
5Y*
14.24%
10Y*
15.63%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VSMSX vs. VFIAX - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
VSMSX
Vanguard S&P Small-Cap 600 Index Fund Institutional Shares
16.33%6.04%7.20%17.57%-16.19%26.72%11.46%22.73%-8.51%13.39%
VFIAX
Vanguard 500 Index Fund Admiral Shares
11.69%17.83%24.97%26.24%-18.16%28.65%18.32%31.46%-4.45%21.78%

Correlation

The correlation between VSMSX and VFIAX is 0.74, 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

0.74

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

0.73

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

0.79

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

0.78

Correlation (All Time)
Calculated using the full available price history since Jan 4, 2012

0.80

The correlation between VSMSX and VFIAX has been stable across timeframes, ranging from 0.73 to 0.80 - a consistent structural relationship.

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Return for Risk

VSMSX vs. VFIAX — Risk / Return Rank

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

VSMSX
VSMSX Risk / Return Rank: 5858
Overall Rank
VSMSX Sharpe Ratio Rank: 4747
Sharpe Ratio Rank
VSMSX Sortino Ratio Rank: 4747
Sortino Ratio Rank
VSMSX Omega Ratio Rank: 4141
Omega Ratio Rank
VSMSX Calmar Ratio Rank: 8585
Calmar Ratio Rank
VSMSX Martin Ratio Rank: 7070
Martin Ratio Rank

VFIAX
VFIAX Risk / Return Rank: 7373
Overall Rank
VFIAX Sharpe Ratio Rank: 7575
Sharpe Ratio Rank
VFIAX Sortino Ratio Rank: 6767
Sortino Ratio Rank
VFIAX Omega Ratio Rank: 6767
Omega Ratio Rank
VFIAX Calmar Ratio Rank: 7474
Calmar Ratio Rank
VFIAX Martin Ratio Rank: 8383
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.

VSMSX vs. VFIAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard S&P Small-Cap 600 Index Fund Institutional Shares (VSMSX) and Vanguard 500 Index Fund Admiral Shares (VFIAX). 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.


VSMSXVFIAXDifference
Sharpe ratioReturn per unit of total volatility

-0.52

Sortino ratioReturn per unit of downside risk

-0.54

Omega ratioGain probability vs. loss probability

1.34

1.46

-0.11

Calmar ratioReturn relative to maximum drawdown

4.03

3.35

+0.68

Martin ratioReturn relative to average drawdown

13.48

15.66

-2.19

VSMSX vs. VFIAX - Sharpe Ratio Comparison

The current VSMSX Sharpe Ratio is 2.00, which is comparable to the VFIAX Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of VSMSX and VFIAX, 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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Sharpe Ratios by Period


VSMSXVFIAXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.00

2.52

-0.52

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.28

0.85

-0.57

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.47

0.87

-0.40

Sharpe Ratio (All Time)

Calculated using the full available price history

0.56

0.47

+0.09

Drawdowns

VSMSX vs. VFIAX - Drawdown Comparison

The maximum VSMSX drawdown since its inception was -44.42%, smaller than the maximum VFIAX drawdown of -55.20%. Use the drawdown chart below to compare losses from any high point for VSMSX and VFIAX.


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Drawdown Indicators


VSMSXVFIAXDifference

Max Drawdown

Largest peak-to-trough decline

-44.42%

-55.20%

+10.78%

Max Drawdown (1Y)

Largest decline over 1 year

-8.69%

-8.90%

+0.21%

Max Drawdown (3Y)

Largest decline over 3 years

-27.93%

-18.75%

-9.18%

Max Drawdown (5Y)

Largest decline over 5 years

-27.93%

-24.53%

-3.40%

Max Drawdown (10Y)

Largest decline over 10 years

-44.42%

-33.83%

-10.59%

Current Drawdown

Current decline from peak

-0.03%

0.00%

-0.03%

Average Drawdown

Average peak-to-trough decline

-7.41%

-9.40%

+1.99%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.59%

1.90%

+0.69%

Volatility

VSMSX vs. VFIAX - Volatility Comparison

Vanguard S&P Small-Cap 600 Index Fund Institutional Shares (VSMSX) has a higher volatility of 4.48% compared to Vanguard 500 Index Fund Admiral Shares (VFIAX) at 2.82%. This indicates that VSMSX's price experiences larger fluctuations and is considered to be riskier than VFIAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


VSMSXVFIAXDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.48%

2.82%

+1.66%

Volatility (6M)

Calculated over the trailing 6-month period

11.70%

8.98%

+2.72%

Volatility (1Y)

Calculated over the trailing 1-year period

17.55%

11.86%

+5.69%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.47%

16.90%

+4.57%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.21%

18.07%

+5.14%

VSMSX vs. VFIAX - Expense Ratio Comparison

VSMSX has a 0.08% expense ratio, which is higher than VFIAX's 0.04% 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

VSMSX vs. VFIAX - Dividend Comparison

VSMSX's dividend yield for the trailing twelve months is around 1.20%, more than VFIAX's 1.01% yield.


PositionTTM20252024202320222021202020192018201720162015
VFIAX
Vanguard 500 Index Fund Admiral Shares
1.01%1.12%1.24%1.45%1.68%1.24%1.53%1.87%2.05%1.78%2.02%2.10%
VSMSX
Vanguard S&P Small-Cap 600 Index Fund Institutional Shares
1.20%1.39%1.49%1.47%1.52%1.17%1.10%1.38%1.39%1.11%1.00%1.33%

Frequently Asked Questions


VSMSX and VFIAX have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VSMSX has higher volatility (4.48%) compared to VFIAX (2.82%). In terms of maximum drawdown, VSMSX dropped -44.42% vs VFIAX's -55.20%.

VFIAX currently has the higher Sharpe Ratio (2.52 vs 2.00), 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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