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VSS vs. SCZ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VSS vs. SCZ

Last updated Aug 2, 2026
Documentation

VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) and SCZ (iShares MSCI EAFE Small-Cap ETF) are both Foreign Small & Mid Cap Equities funds - VSS tracks the FTSE Global Small Cap ex US Index while SCZ tracks the MSCI EAFE Small Cap Index. Both are passively managed. Over the past 10 years, VSS returned 7.53%/yr vs 8.23%/yr for SCZ. Their correlation of 0.94 means they have usually moved in the same direction. VSS charges 0.07%/yr vs 0.40%/yr for SCZ.

Performance

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

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Returns By Period

In the year-to-date period, VSS achieves a 5.59% return, which is significantly lower than SCZ's 9.73% return. Over the past 10 years, VSS has underperformed SCZ with an annualized return of 7.53%, while SCZ has yielded a comparatively higher 8.23% annualized return.

VSS

1D
-0.16%
1M
-2.96%
6M
-0.76%
YTD
5.59%
1Y
16.61%
3Y*
13.20%
5Y*
4.94%
10Y*
7.53%
ALL TIME*
9.62%

SCZ

1D
-0.56%
1M
0.50%
6M
4.04%
YTD
9.73%
1Y
19.33%
3Y*
15.04%
5Y*
5.28%
10Y*
8.23%
ALL TIME*
5.52%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

SCZ

iShares MSCI EAFE Small-Cap ETF
$120.33M$145.28M$127.06M

VSS

Vanguard FTSE All-World ex-US Small-Cap ETF
$26.20M$30.06M$40.76M

VSS vs. SCZ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF		5.59%29.61%2.94%15.52%-21.48%13.05%11.81%21.36%-18.48%30.61%
SCZ
iShares MSCI EAFE Small-Cap ETF		9.73%32.08%1.52%12.98%-21.27%10.12%11.71%24.68%-17.64%32.72%

Correlation

The correlation between VSS and SCZ is 0.92, 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.

0.92

Correlation (3Y)
Balances recent behavior with more history.

0.93

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.95

Correlation (10Y)
Provides a long-term view across more market conditions.

0.95

Correlation (All Time)
Calculated using the full available price history since Apr 6, 2009

0.94

The correlation between VSS and SCZ has been stable across timeframes, ranging from 0.92 to 0.95 - a consistent structural relationship.

VSS vs. SCZ - Sectors Allocation Comparison

Sectors
VSS
SCZ

Industrials

20.5%
24.2%

Technology

15.7%
11.0%

Basic Materials

12.9%
9.7%

Financial Services

12.3%
12.7%

Consumer Cyclical

9.0%
12.5%

Real Estate

7.9%
9.9%

Healthcare

6.1%
6.1%

Energy

4.6%
3.3%

Consumer Defensive

3.5%
4.8%

Utilities

2.5%
2.1%

Communication Services

2.1%
3.6%

Industrials

VSS
20.5%
SCZ
24.2%

Technology

VSS
15.7%
SCZ
11.0%

Basic Materials

VSS
12.9%
SCZ
9.7%

Financial Services

VSS
12.3%
SCZ
12.7%

Consumer Cyclical

VSS
9.0%
SCZ
12.5%

Real Estate

VSS
7.9%
SCZ
9.9%

Healthcare

VSS
6.1%
SCZ
6.1%

Energy

VSS
4.6%
SCZ
3.3%

Consumer Defensive

VSS
3.5%
SCZ
4.8%

Utilities

VSS
2.5%
SCZ
2.1%

Communication Services

VSS
2.1%
SCZ
3.6%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

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

iShares MSCI EAFE Small-Cap ETF

Often compared with VSS:
VSS vs. AVDVVSS vs. VEUVSS vs. VXUSVSS vs. SCHCVSS vs. VWOVSS vs. VOOVSS vs. VBR
Often compared with SCZ:
SCZ vs. AVDVSCZ vs. IWMSCZ vs. IEFASCZ vs. VPLSCZ vs. IDEVSCZ vs. ISCFSCZ vs. VOO

Return for Risk

VSS vs. SCZ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
VSS
VSS Risk / Return Rank: 4141
Overall Rank
VSS Sharpe Ratio Rank: 4141
Sharpe Ratio Rank
VSS Sortino Ratio Rank: 4040
Sortino Ratio Rank
VSS Omega Ratio Rank: 4141
Omega Ratio Rank
VSS Calmar Ratio Rank: 4141
Calmar Ratio Rank
VSS Martin Ratio Rank: 4242
Martin Ratio Rank
SCZ
SCZ Risk / Return Rank: 5353
Overall Rank
SCZ Sharpe Ratio Rank: 5454
Sharpe Ratio Rank
SCZ Sortino Ratio Rank: 5555
Sortino Ratio Rank
SCZ Omega Ratio Rank: 5454
Omega Ratio Rank
SCZ Calmar Ratio Rank: 4848
Calmar Ratio Rank
SCZ Martin Ratio Rank: 5454
Martin Ratio Rank
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. SCZ - 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 MSCI EAFE Small-Cap ETF (SCZ). 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.

VSSSCZDifference
Sharpe ratioReturn per unit of total volatility
1.02
1.31

-0.28

Sortino ratioReturn per unit of downside risk
1.47
1.90

-0.43

Omega ratioGain probability vs. loss probability

1.19

1.24

-0.05

Calmar ratioReturn relative to maximum drawdown

1.43

1.74

-0.31

Martin ratioReturn relative to average drawdown

4.54

6.32

-1.77

VSS vs. SCZ - Sharpe Ratio Comparison

The current VSS Sharpe Ratio is 1.02, which is comparable to the SCZ Sharpe Ratio of 1.31. The chart below compares the historical Sharpe Ratios of VSS and SCZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

VSS vs. SCZ - Drawdown Comparison

The maximum VSS drawdown since its inception was -43.51%, smaller than the maximum SCZ drawdown of -61.86%. Use the drawdown chart below to compare losses from any high point for VSS and SCZ.

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Drawdown Indicators

VSSSCZDifference

Max Drawdown

Largest peak-to-trough decline

-43.51%

-61.86%

+18.35%

Max Drawdown (1Y)

Largest decline over 1 year

-11.62%

-11.43%

-0.19%

Max Drawdown (3Y)

Largest decline over 3 years

-15.73%

-14.52%

-1.21%

Max Drawdown (5Y)

Largest decline over 5 years

-33.93%

-36.87%

+2.94%

Max Drawdown (10Y)

Largest decline over 10 years

-43.51%

-41.07%

-2.44%

Current Drawdown

Current decline from peak

-6.97%

-1.64%

-5.33%

Average Drawdown

Average peak-to-trough decline

-9.60%

-12.97%

+3.37%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.65%

3.14%

+0.51%

Volatility

VSS vs. SCZ - Volatility Comparison

Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a higher volatility of 5.10% compared to iShares MSCI EAFE Small-Cap ETF (SCZ) at 4.71%. This indicates that VSS's price experiences larger fluctuations and is considered to be riskier than SCZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VSSSCZDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.10%

4.71%

+0.39%

Volatility (6M)

Calculated over the trailing 6-month period

14.40%

13.09%

+1.31%

Volatility (1Y)

Calculated over the trailing 1-year period

16.22%

15.18%

+1.04%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.68%

16.83%

-0.15%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.14%

17.16%

-0.02%

VSS vs. SCZ - Expense Ratio Comparison

VSS has a 0.07% expense ratio, which is lower than SCZ's 0.40% expense ratio.

Dividends

VSS vs. SCZ - Dividend Comparison

VSS's dividend yield for the trailing twelve months is around 3.31%, more than SCZ's 3.18% yield.

PositionTTM20252024202320222021202020192018201720162015
SCZ
iShares MSCI EAFE Small-Cap ETF		3.18%3.30%3.50%2.96%1.99%2.96%1.52%3.52%2.79%2.38%2.82%2.06%
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF		3.31%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

With a correlation of 0.92, VSS and SCZ 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.

VSS has higher volatility (5.10%) compared to SCZ (4.71%). In terms of maximum drawdown, VSS dropped -43.51% vs SCZ's -61.86%.

On 10-year performance, SCZ leads with 8.23% vs 7.53% for VSS. On fees, VSS is cheaper at 0.07% per year. On volatility, SCZ has been the lower-risk option at 4.71%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, SCZ has performed better with a 8.23% return vs 7.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VSS is cheaper with a 0.07% expense ratio, compared with 0.40% for SCZ.

VSS has the higher dividend yield at 3.31%, compared with 3.18% for SCZ.

VSS tracks FTSE Global Small Cap ex US Index, while SCZ tracks MSCI EAFE Small Cap Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.07% for VSS and 0.40% for SCZ.

SCZ currently has the higher Sharpe Ratio (1.31 vs 1.02), 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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