VSMSX vs. VWELX
VSMSX (Vanguard S&P Small-Cap 600 Index Fund Institutional Shares) and VWELX (Vanguard Wellington Fund Investor Shares) are both mutual funds - VSMSX is a Small Cap Blend Equities fund managed by Vanguard, while VWELX is a Diversified Portfolio fund actively managed by Vanguard. Over the past 10 years, VSMSX returned 10.81%/yr vs 10.20%/yr for VWELX. A 0.77 correlation means they provide meaningful diversification when combined. VSMSX charges 0.08%/yr vs 0.24%/yr for VWELX.
Performance
VSMSX vs. VWELX - Performance Comparison
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Returns By Period
In the year-to-date period, VSMSX achieves a 16.33% return, which is significantly higher than VWELX's 7.11% return. Over the past 10 years, VSMSX has outperformed VWELX with an annualized return of 10.81%, while VWELX has yielded a comparatively lower 10.20% 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%
VWELX
- 1D
- 0.06%
- 1M
- 3.86%
- YTD
- 7.11%
- 6M
- 7.36%
- 1Y
- 21.02%
- 3Y*
- 15.61%
- 5Y*
- 8.97%
- 10Y*
- 10.20%
VSMSX vs. VWELX - 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% |
VWELX Vanguard Wellington Fund Investor Shares | 7.11% | 16.54% | 14.73% | 14.29% | -14.36% | 18.99% | 10.57% | 22.51% | -3.43% | 13.98% |
Correlation
The correlation between VSMSX and VWELX is 0.68, 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 | 0.68 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.71 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.75 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.74 |
Correlation (All Time) Calculated using the full available price history since Jan 4, 2012 | 0.77 |
The correlation between VSMSX and VWELX has been stable across timeframes, ranging from 0.68 to 0.77 - a consistent structural relationship.
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Return for Risk
VSMSX vs. VWELX — Risk / Return Rank
VSMSX
VWELX
VSMSX vs. VWELX - 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 Wellington Fund Investor Shares (VWELX). 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 | VWELX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.57 | ||
| Sortino ratioReturn per unit of downside risk | -0.73 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.48 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 4.03 | 3.17 | +0.86 |
| Martin ratioReturn relative to average drawdown | 13.48 | 14.69 | -1.21 |
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 | VWELX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.00 | 2.56 | -0.57 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.28 | 0.81 | -0.53 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.47 | 0.89 | -0.42 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.56 | 0.84 | -0.29 |
Drawdowns
VSMSX vs. VWELX - Drawdown Comparison
The maximum VSMSX drawdown since its inception was -44.42%, which is greater than VWELX's maximum drawdown of -36.12%. Use the drawdown chart below to compare losses from any high point for VSMSX and VWELX.
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Drawdown Indicators
| VSMSX | VWELX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -44.42% | -36.12% | -8.30% |
Max Drawdown (1Y)Largest decline over 1 year | -8.69% | -6.78% | -1.91% |
Max Drawdown (3Y)Largest decline over 3 years | -27.93% | -11.98% | -15.95% |
Max Drawdown (5Y)Largest decline over 5 years | -27.93% | -20.88% | -7.05% |
Max Drawdown (10Y)Largest decline over 10 years | -44.42% | -25.33% | -19.09% |
Current DrawdownCurrent decline from peak | -0.03% | 0.00% | -0.03% |
Average DrawdownAverage peak-to-trough decline | -7.41% | -3.92% | -3.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.59% | 1.46% | +1.13% |
Volatility
VSMSX vs. VWELX - Volatility Comparison
Vanguard S&P Small-Cap 600 Index Fund Institutional Shares (VSMSX) has a higher volatility of 4.48% compared to Vanguard Wellington Fund Investor Shares (VWELX) at 2.52%. This indicates that VSMSX's price experiences larger fluctuations and is considered to be riskier than VWELX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VSMSX | VWELX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.48% | 2.52% | +1.96% |
Volatility (6M)Calculated over the trailing 6-month period | 11.70% | 6.67% | +5.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.55% | 8.38% | +9.17% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.47% | 11.13% | +10.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.21% | 11.53% | +11.68% |
VSMSX vs. VWELX - Expense Ratio Comparison
VSMSX has a 0.08% expense ratio, which is lower than VWELX's 0.24% 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. VWELX - Dividend Comparison
VSMSX's dividend yield for the trailing twelve months is around 1.20%, less than VWELX's 10.76% 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% |
VWELX Vanguard Wellington Fund Investor Shares | 10.76% | 11.46% | 10.76% | 6.01% | 8.19% | 8.64% | 7.77% | 4.67% | 9.49% | 5.82% | 4.44% | 7.03% |
Frequently Asked Questions
VSMSX and VWELX have a correlation of 0.68, 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 VWELX (2.52%). In terms of maximum drawdown, VSMSX dropped -44.42% vs VWELX's -36.12%.
VWELX currently has the higher Sharpe Ratio (2.56 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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