VSS vs. DLS

Last updated Aug 4, 2026

VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) and DLS (WisdomTree International SmallCap Dividend Fund) are both Foreign Small & Mid Cap Equities funds - VSS tracks the FTSE Global Small Cap ex US Index while DLS tracks the WisdomTree International SmallCap Dividend Index. Both are passively managed. Over the past 10 years, VSS returned 7.57%/yr vs 7.86%/yr for DLS. Their correlation of 0.93 means they have usually moved in the same direction. VSS charges 0.07%/yr vs 0.58%/yr for DLS.

Performance

VSS vs. DLS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and WisdomTree International SmallCap Dividend Fund (DLS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSS achieves a 6.94% return, which is significantly lower than DLS's 8.83% return. Both investments have delivered pretty close results over the past 10 years, with VSS having a 7.57% annualized return and DLS not far ahead at 7.86%.

VSS

• 1D: 1.28%
• 1M: -1.71%
• 6M: 0.47%
• YTD: 6.94%
• 1Y: 18.10%
• 3Y*: 14.19%
• 5Y*: 5.11%
• 10Y*: 7.57%
• ALL TIME*: 9.69%

DLS

• 1D: 0.38%
• 1M: 1.63%
• 6M: 3.76%
• YTD: 8.83%
• 1Y: 18.81%
• 3Y*: 17.23%
• 5Y*: 7.14%
• 10Y*: 7.86%
• ALL TIME*: 6.45%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DLS WisdomTree International SmallCap Dividend Fund	$1.55M	$1.40M	$1.52M
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	$24.96M	$29.77M	$40.87M

VSS vs. DLS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	6.94%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%
DLS WisdomTree International SmallCap Dividend Fund	8.83%	34.11%	3.06%	15.33%	-17.31%	11.71%	-1.28%	22.20%	-18.95%	31.83%

Correlation

The correlation between VSS and DLS is 0.89, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.89
Correlation (3Y) Balances recent behavior with more history.	0.91
Correlation (5Y) Shows whether the relationship held over a longer period.	0.93
Correlation (10Y) Provides a long-term view across more market conditions.	0.93
Correlation (All Time) Calculated using the full available price history since Apr 6, 2009	0.93

The correlation between VSS and DLS has been stable across timeframes, ranging from 0.89 to 0.93 - a consistent structural relationship.

VSS vs. DLS - Sectors Allocation Comparison

Sectors	VSS	DLS
Industrials	20.5%	28.0%
Technology	15.7%	9.1%
Basic Materials	12.9%	9.0%
Financial Services	12.3%	13.8%
Consumer Cyclical	9.0%	12.9%
Real Estate	7.9%	7.4%
Healthcare	6.1%	3.6%
Energy	4.6%	2.4%
Consumer Defensive	3.5%	7.7%
Utilities	2.5%	2.0%
Communication Services	2.1%	4.2%

Return for Risk

VSS vs. DLS — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VSS

VSS Risk / Return Rank: 43
VSS Sharpe Ratio Rank: 44
VSS Sortino Ratio Rank: 42
VSS Omega Ratio Rank: 44
VSS Calmar Ratio Rank: 43
VSS Martin Ratio Rank: 44

DLS

DLS Risk / Return Rank: 52
DLS Sharpe Ratio Rank: 54
DLS Sortino Ratio Rank: 55
DLS Omega Ratio Rank: 54
DLS Calmar Ratio Rank: 46
DLS Martin Ratio Rank: 49

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VSS vs. DLS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and WisdomTree International SmallCap Dividend Fund (DLS). 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.

	VSS	DLS	Difference
Sharpe ratio: Return per unit of total volatility	1.12	1.36	-0.24
Sortino ratio: Return per unit of downside risk	1.59	1.99	-0.39
Omega ratio: Gain probability vs. loss probability	1.21	1.25	-0.04
Calmar ratio: Return relative to maximum drawdown	1.57	1.71	-0.15
Martin ratio: Return relative to average drawdown	4.95	5.78	-0.83

VSS vs. DLS - Sharpe Ratio Comparison

The current VSS Sharpe Ratio is 1.12, which is comparable to the DLS Sharpe Ratio of 1.36. The chart below compares the historical Sharpe Ratios of VSS and DLS, 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

VSS vs. DLS - Drawdown Comparison

The maximum VSS drawdown since its inception was -43.51%, smaller than the maximum DLS drawdown of -63.13%. Use the drawdown chart below to compare losses from any high point for VSS and DLS.

Drawdown Indicators

	VSS	DLS	Difference
Max Drawdown Largest peak-to-trough decline	-43.51%	-63.13%	+19.62%
Max Drawdown (1Y) Largest decline over 1 year	-11.62%	-11.04%	-0.58%
Max Drawdown (3Y) Largest decline over 3 years	-15.73%	-12.69%	-3.04%
Max Drawdown (5Y) Largest decline over 5 years	-33.93%	-32.22%	-1.71%
Max Drawdown (10Y) Largest decline over 10 years	-43.51%	-44.77%	+1.26%
Current Drawdown Current decline from peak	-5.78%	-1.21%	-4.57%
Average Drawdown Average peak-to-trough decline	-9.60%	-13.56%	+3.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.67%	3.26%	+0.41%

Volatility

VSS vs. DLS - Volatility Comparison

Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a higher volatility of 5.23% compared to WisdomTree International SmallCap Dividend Fund (DLS) at 4.11%. This indicates that VSS's price experiences larger fluctuations and is considered to be riskier than DLS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSS	DLS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.23%	4.11%	+1.12%
Volatility (6M) Calculated over the trailing 6-month period	14.27%	11.78%	+2.49%
Volatility (1Y) Calculated over the trailing 1-year period	16.29%	13.92%	+2.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.69%	15.64%	+1.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.15%	16.38%	+0.77%

VSS vs. DLS - Expense Ratio Comparison

VSS has a 0.07% expense ratio, which is lower than DLS's 0.58% expense ratio.

Dividends

VSS vs. DLS - Dividend Comparison

VSS's dividend yield for the trailing twelve months is around 3.26%, less than DLS's 3.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DLS WisdomTree International SmallCap Dividend Fund	3.49%	3.87%	4.56%	4.29%	4.96%	3.29%	2.50%	3.37%	3.66%	2.79%	3.29%	2.72%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.26%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Frequently Asked Questions

Can I hold both VSS and DLS in my portfolio?

VSS and DLS have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VSS or DLS?

VSS has higher volatility (5.23%) compared to DLS (4.11%). In terms of maximum drawdown, VSS dropped -43.51% vs DLS's -63.13%.

Which ETF is better, VSS or DLS?

On 10-year performance, DLS leads with 7.86% vs 7.57% for VSS. On fees, VSS is cheaper at 0.07% per year. On volatility, DLS has been the lower-risk option at 4.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSS or DLS?

Over the 10-year period, DLS has performed better with a 7.86% return vs 7.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSS or DLS?

VSS is cheaper with a 0.07% expense ratio, compared with 0.58% for DLS.

Which ETF pays a higher dividend yield, VSS or DLS?

DLS has the higher dividend yield at 3.49%, compared with 3.26% for VSS.

What is the main difference between VSS and DLS?

VSS tracks FTSE Global Small Cap ex US Index, while DLS tracks WisdomTree International SmallCap Dividend Index. They also come from different issuers: Vanguard and WisdomTree. Their fees differ too: 0.07% for VSS and 0.58% for DLS.

Which has better risk-adjusted returns?

DLS currently has the higher Sharpe Ratio (1.36 vs 1.12), 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.