VSMSX vs. VSTCX
VSMSX (Vanguard S&P Small-Cap 600 Index Fund Institutional Shares) and VSTCX (Vanguard Strategic Small-Cap Equity Fund) are both Small Cap Blend Equities funds from Vanguard. Over the past 10 years, VSMSX returned 10.81%/yr vs 12.71%/yr for VSTCX. With a 0.97 correlation, they move nearly in lockstep. VSMSX charges 0.08%/yr vs 0.26%/yr for VSTCX.
Performance
VSMSX vs. VSTCX - Performance Comparison
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Returns By Period
In the year-to-date period, VSMSX achieves a 16.33% return, which is significantly lower than VSTCX's 18.22% return. Over the past 10 years, VSMSX has underperformed VSTCX with an annualized return of 10.81%, while VSTCX has yielded a comparatively higher 12.71% 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%
VSTCX
- 1D
- 0.58%
- 1M
- 3.68%
- YTD
- 18.22%
- 6M
- 18.42%
- 1Y
- 41.82%
- 3Y*
- 22.14%
- 5Y*
- 11.88%
- 10Y*
- 12.71%
VSMSX vs. VSTCX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
VSTCX Vanguard Strategic Small-Cap Equity Fund | 18.22% | 15.20% | 15.40% | 21.34% | -13.00% | 33.53% | 8.38% | 22.18% | -11.87% | 9.21% |
Correlation
The correlation between VSMSX and VSTCX is 0.96 - 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 | 0.96 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.97 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.98 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.97 |
Correlation (All Time) Calculated using the full available price history since Jan 4, 2012 | 0.97 |
The correlation between VSMSX and VSTCX has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.
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Return for Risk
VSMSX vs. VSTCX — Risk / Return Rank
VSMSX
VSTCX
VSMSX vs. VSTCX - 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 Strategic Small-Cap Equity Fund (VSTCX). 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.
| VSMSX | VSTCX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.51 | ||
| Sortino ratioReturn per unit of downside risk | -0.59 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.43 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 4.03 | 5.44 | -1.41 |
| Martin ratioReturn relative to average drawdown | 13.48 | 19.17 | -5.69 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VSMSX | VSTCX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.00 | 2.50 | -0.51 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.28 | 0.54 | -0.27 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.47 | 0.54 | -0.08 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.56 | 0.38 | +0.17 |
Drawdowns
VSMSX vs. VSTCX - Drawdown Comparison
The maximum VSMSX drawdown since its inception was -44.42%, smaller than the maximum VSTCX drawdown of -62.50%. Use the drawdown chart below to compare losses from any high point for VSMSX and VSTCX.
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Drawdown Indicators
| VSMSX | VSTCX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -44.42% | -62.50% | +18.08% |
Max Drawdown (1Y)Largest decline over 1 year | -8.69% | -8.08% | -0.61% |
Max Drawdown (3Y)Largest decline over 3 years | -27.93% | -27.47% | -0.46% |
Max Drawdown (5Y)Largest decline over 5 years | -27.93% | -27.47% | -0.46% |
Max Drawdown (10Y)Largest decline over 10 years | -44.42% | -48.08% | +3.66% |
Current DrawdownCurrent decline from peak | -0.03% | 0.00% | -0.03% |
Average DrawdownAverage peak-to-trough decline | -7.41% | -10.65% | +3.24% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.59% | 2.29% | +0.30% |
Volatility
VSMSX vs. VSTCX - Volatility Comparison
Vanguard S&P Small-Cap 600 Index Fund Institutional Shares (VSMSX) and Vanguard Strategic Small-Cap Equity Fund (VSTCX) have volatilities of 4.48% and 4.49%, 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.
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Volatility by Period
| VSMSX | VSTCX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.48% | 4.49% | -0.01% |
Volatility (6M)Calculated over the trailing 6-month period | 11.70% | 11.97% | -0.27% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.55% | 17.57% | -0.02% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.47% | 21.99% | -0.52% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.21% | 23.47% | -0.26% |
VSMSX vs. VSTCX - Expense Ratio Comparison
VSMSX has a 0.08% expense ratio, which is lower than VSTCX's 0.26% 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
VSMSX vs. VSTCX - Dividend Comparison
VSMSX's dividend yield for the trailing twelve months is around 1.20%, less than VSTCX's 6.38% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
VSTCX Vanguard Strategic Small-Cap Equity Fund | 6.38% | 7.55% | 9.66% | 2.50% | 7.44% | 19.92% | 1.24% | 4.14% | 11.74% | 5.76% | 1.35% | 2.33% |
Frequently Asked Questions
With a correlation of 0.96, VSMSX and VSTCX 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.
VSTCX has higher volatility (4.49%) compared to VSMSX (4.48%). In terms of maximum drawdown, VSMSX dropped -44.42% vs VSTCX's -62.50%.
VSTCX currently has the higher Sharpe Ratio (2.50 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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