VSS vs. HSCZ

Last updated Apr 1, 2026

Compare and contrast key facts about Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ).

VSS and HSCZ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VSS is a passively managed fund by Vanguard that tracks the performance of the FTSE Global Small Cap ex US Index. It was launched on Apr 2, 2009. HSCZ is a passively managed fund by iShares that tracks the performance of the MSCI EAFE Small-Cap 100% Hedged to USD Index. It was launched on Jun 29, 2015. Both VSS and HSCZ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

VSS vs. HSCZ - 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 iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ). The values are adjusted to include any dividend payments, if applicable.

VSS vs. HSCZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	1.72%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	1.96%	25.74%	12.89%	17.03%	-11.46%	17.75%	6.40%	27.89%	-13.99%	24.52%

Returns By Period

In the year-to-date period, VSS achieves a 1.72% return, which is significantly lower than HSCZ's 1.96% return. Over the past 10 years, VSS has underperformed HSCZ with an annualized return of 7.63%, while HSCZ has yielded a comparatively higher 11.13% annualized return.

VSS

• 1D: 3.06%
• 1M: -8.91%
• YTD: 1.72%
• 6M: 4.71%
• 1Y: 30.55%
• 3Y*: 13.84%
• 5Y*: 5.38%
• 10Y*: 7.63%

HSCZ

• 1D: 2.14%
• 1M: -6.61%
• YTD: 1.96%
• 6M: 7.54%
• 1Y: 27.45%
• 3Y*: 16.89%
• 5Y*: 9.84%
• 10Y*: 11.13%

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

VSS vs. HSCZ - Expense Ratio Comparison

VSS has a 0.07% expense ratio, which is lower than HSCZ's 0.43% expense ratio.

HSCZ

iShares Currency Hedged MSCI EAFE Small Cap ETF

VSS

Vanguard FTSE All-World ex-US Small-Cap ETF

Return for Risk

VSS vs. HSCZ — Risk / Return Rank

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

VSS

VSS Risk / Return Rank: 89
VSS Sharpe Ratio Rank: 90
VSS Sortino Ratio Rank: 90
VSS Omega Ratio Rank: 91
VSS Calmar Ratio Rank: 87
VSS Martin Ratio Rank: 88

HSCZ

HSCZ Risk / Return Rank: 90
HSCZ Sharpe Ratio Rank: 89
HSCZ Sortino Ratio Rank: 91
HSCZ Omega Ratio Rank: 93
HSCZ Calmar Ratio Rank: 86
HSCZ Martin Ratio Rank: 88

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.

VSS vs. HSCZ - 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 iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ). 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.

	VSS	HSCZ	Difference
Sharpe ratio Return per unit of total volatility	1.88	1.92	-0.04
Sortino ratio Return per unit of downside risk	2.50	2.62	-0.13
Omega ratio Gain probability vs. loss probability	1.38	1.41	-0.03
Calmar ratio Return relative to maximum drawdown	2.54	2.61	-0.07
Martin ratio Return relative to average drawdown	10.09	10.63	-0.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VSS vs. HSCZ - Sharpe Ratio Comparison

The current VSS Sharpe Ratio is 1.88, which is comparable to the HSCZ Sharpe Ratio of 1.92. The chart below compares the historical Sharpe Ratios of VSS and HSCZ, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	VSS	HSCZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.88	1.92	-0.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.74	-0.41
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	0.71	-0.27
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.62	-0.10

Correlation

The correlation between VSS and HSCZ is 0.76, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

VSS vs. HSCZ - Dividend Comparison

VSS's dividend yield for the trailing twelve months is around 3.33%, more than HSCZ's 3.19% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.33%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	3.19%	3.25%	3.26%	2.98%	26.91%	2.90%	1.46%	4.66%	6.15%	2.52%	2.57%	1.75%

Drawdowns

VSS vs. HSCZ - Drawdown Comparison

The maximum VSS drawdown since its inception was -43.51%, which is greater than HSCZ's maximum drawdown of -34.89%. Use the drawdown chart below to compare losses from any high point for VSS and HSCZ.

Drawdown Indicators

	VSS	HSCZ	Difference
Max Drawdown Largest peak-to-trough decline	-43.51%	-34.89%	-8.62%
Max Drawdown (1Y) Largest decline over 1 year	-11.62%	-9.88%	-1.74%
Max Drawdown (5Y) Largest decline over 5 years	-33.93%	-20.11%	-13.82%
Max Drawdown (10Y) Largest decline over 10 years	-43.51%	-34.89%	-8.62%
Current Drawdown Current decline from peak	-8.91%	-6.61%	-2.30%
Average Drawdown Average peak-to-trough decline	-9.72%	-4.70%	-5.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.93%	2.44%	+0.49%

Volatility

VSS vs. HSCZ - Volatility Comparison

Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a higher volatility of 7.61% compared to iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) at 5.41%. This indicates that VSS's price experiences larger fluctuations and is considered to be riskier than HSCZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSS	HSCZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.61%	5.41%	+2.20%
Volatility (6M) Calculated over the trailing 6-month period	11.00%	8.49%	+2.51%
Volatility (1Y) Calculated over the trailing 1-year period	16.37%	14.44%	+1.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.26%	13.37%	+2.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.17%	15.65%	+1.52%