VSS vs. MS

Last updated Jun 9, 2026

VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) is Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US Index, while MS (Morgan Stanley) is a stock. Over the past 10 years, VSS returned 7.98%/yr vs 27.13%/yr for MS. A 0.59 correlation means they provide meaningful diversification when combined.

Performance

VSS vs. MS - 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 Morgan Stanley (MS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSS achieves a 7.74% return, which is significantly lower than MS's 20.86% return. Over the past 10 years, VSS has underperformed MS with an annualized return of 7.98%, while MS has yielded a comparatively higher 27.13% annualized return.

VSS

• 1D: 0.02%
• 1M: -4.88%
• YTD: 7.74%
• 6M: 10.30%
• 1Y: 22.83%
• 3Y*: 15.44%
• 5Y*: 5.25%
• 10Y*: 7.98%

MS

• 1D: 0.15%
• 1M: 9.92%
• YTD: 20.86%
• 6M: 21.34%
• 1Y: 64.89%
• 3Y*: 39.40%
• 5Y*: 21.89%
• 10Y*: 27.13%

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

VSS vs. MS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	7.74%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%
MS Morgan Stanley	20.86%	45.16%	39.73%	13.93%	-10.34%	46.65%	38.09%	32.67%	-22.76%	26.61%

Correlation

The correlation between VSS and MS is 0.50, 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	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.58
Correlation (10Y) Calculated over the trailing 10-year period	0.56
Correlation (All Time) Calculated using the full available price history since Apr 6, 2009	0.59

The correlation between VSS and MS shifts across timeframes, from 0.48 (3 years) to 0.59 (all time), reflecting how their relationship changes across market environments.

Return for Risk

VSS vs. MS — Risk / Return Rank

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

VSS

VSS Risk / Return Rank: 47
VSS Sharpe Ratio Rank: 48
VSS Sortino Ratio Rank: 46
VSS Omega Ratio Rank: 49
VSS Calmar Ratio Rank: 44
VSS Martin Ratio Rank: 49

MS

MS Risk / Return Rank: 90
MS Sharpe Ratio Rank: 93
MS Sortino Ratio Rank: 90
MS Omega Ratio Rank: 91
MS Calmar Ratio Rank: 86
MS Martin Ratio Rank: 90

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. MS - 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 Morgan Stanley (MS). 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	MS	Difference
Sharpe ratio: Return per unit of total volatility	1.50	2.55	-1.05
Sortino ratio: Return per unit of downside risk	2.06	3.16	-1.10
Omega ratio: Gain probability vs. loss probability	1.28	1.43	-0.15
Calmar ratio: Return relative to maximum drawdown	1.97	3.46	-1.49
Martin ratio: Return relative to average drawdown	7.54	11.46	-3.92
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. MS - Sharpe Ratio Comparison

The current VSS Sharpe Ratio is 1.50, which is lower than the MS Sharpe Ratio of 2.55. The chart below compares the historical Sharpe Ratios of VSS and MS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VSS	MS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.50	2.55	-1.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.32	0.77	-0.45
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.46	0.86	-0.40
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	0.29	+0.24

Drawdowns

VSS vs. MS - Drawdown Comparison

The maximum VSS drawdown since its inception was -43.51%, smaller than the maximum MS drawdown of -88.12%. Use the drawdown chart below to compare losses from any high point for VSS and MS.

Drawdown Indicators

	VSS	MS	Difference
Max Drawdown Largest peak-to-trough decline	-43.51%	-88.12%	+44.61%
Max Drawdown (1Y) Largest decline over 1 year	-11.62%	-18.83%	+7.21%
Max Drawdown (3Y) Largest decline over 3 years	-15.73%	-29.24%	+13.51%
Max Drawdown (5Y) Largest decline over 5 years	-33.93%	-32.38%	-1.55%
Max Drawdown (10Y) Largest decline over 10 years	-43.51%	-51.33%	+7.82%
Current Drawdown Current decline from peak	-5.08%	-2.76%	-2.32%
Average Drawdown Average peak-to-trough decline	-9.64%	-33.70%	+24.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.04%	5.68%	-2.64%

Volatility

VSS vs. MS - Volatility Comparison

The current volatility for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) is 5.87%, while Morgan Stanley (MS) has a volatility of 8.06%. This indicates that VSS experiences smaller price fluctuations and is considered to be less risky than MS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSS	MS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.87%	8.06%	-2.19%
Volatility (6M) Calculated over the trailing 6-month period	13.18%	21.21%	-8.03%
Volatility (1Y) Calculated over the trailing 1-year period	15.28%	25.62%	-10.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.53%	28.72%	-12.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.30%	31.51%	-14.21%

Dividends

VSS vs. MS - Dividend Comparison

VSS's dividend yield for the trailing twelve months is around 3.15%, more than MS's 1.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MS Morgan Stanley	1.88%	2.17%	2.82%	3.49%	3.47%	2.14%	2.04%	2.54%	2.77%	1.72%	1.66%	1.73%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.15%	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 MS in my portfolio?

VSS and MS have a correlation of 0.50, 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 MS?

MS has higher volatility (8.06%) compared to VSS (5.87%). In terms of maximum drawdown, VSS dropped -43.51% vs MS's -88.12%.

Which has better risk-adjusted returns?

MS currently has the higher Sharpe Ratio (2.55 vs 1.50), 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.