VSS vs. VV

Last updated Jun 25, 2026

VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) and VV (Vanguard Large-Cap ETF) are both exchange-traded funds - VSS is a Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US Index, while VV is a Large Cap Blend Equities fund tracking the CRSP US Large Cap Index. Both are passively managed. Over the past 10 years, VSS returned 8.45%/yr vs 15.61%/yr for VV. A 0.80 correlation means they provide meaningful diversification when combined. VSS charges 0.07%/yr vs 0.04%/yr for VV.

Performance

VSS vs. VV - 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 Vanguard Large-Cap ETF (VV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with VSS having a 7.69% return and VV slightly higher at 7.81%. Over the past 10 years, VSS has underperformed VV with an annualized return of 8.45%, while VV has yielded a comparatively higher 15.61% annualized return.

VSS

• 1D: -0.10%
• 1M: -3.13%
• YTD: 7.69%
• 6M: 7.31%
• 1Y: 20.91%
• 3Y*: 15.99%
• 5Y*: 5.43%
• 10Y*: 8.45%

VV

• 1D: -0.09%
• 1M: -1.36%
• YTD: 7.81%
• 6M: 6.49%
• 1Y: 21.84%
• 3Y*: 20.96%
• 5Y*: 12.56%
• 10Y*: 15.61%

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

VSS vs. VV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	7.69%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%
VV Vanguard Large-Cap ETF	7.81%	18.11%	25.25%	27.18%	-19.91%	27.41%	21.04%	31.25%	-4.46%	22.00%

Correlation

The correlation between VSS and VV is 0.77, 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	0.77
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	0.77
Correlation (All Time) Calculated using the full available price history since Apr 6, 2009	0.80

The correlation between VSS and VV has been stable across timeframes, ranging from 0.71 to 0.80 - a consistent structural relationship.

VSS vs. VV - Sectors Allocation Comparison

Sectors	VSS	VV
Industrials	18.7%	8.0%
Technology	14.5%	35.9%
Basic Materials	12.2%	1.6%
Financial Services	10.1%	11.8%
Consumer Cyclical	9.1%	9.8%
Real Estate	7.1%	1.7%
Healthcare	6.0%	8.6%
Energy	4.4%	3.6%
Consumer Defensive	3.5%	4.8%
Utilities	2.5%	2.7%
Communication Services	2.3%	11.2%

Return for Risk

VSS vs. VV — Risk / Return Rank

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

VSS

VSS Risk / Return Rank: 41
VSS Sharpe Ratio Rank: 41
VSS Sortino Ratio Rank: 39
VSS Omega Ratio Rank: 42
VSS Calmar Ratio Rank: 39
VSS Martin Ratio Rank: 44

VV

VV Risk / Return Rank: 57
VV Sharpe Ratio Rank: 57
VV Sortino Ratio Rank: 55
VV Omega Ratio Rank: 56
VV Calmar Ratio Rank: 54
VV Martin Ratio Rank: 64

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. VV - 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 Vanguard Large-Cap ETF (VV). 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	VV	Difference
Sharpe ratio: Return per unit of total volatility	1.33	1.74	-0.41
Sortino ratio: Return per unit of downside risk	1.86	2.39	-0.53
Omega ratio: Gain probability vs. loss probability	1.25	1.31	-0.06
Calmar ratio: Return relative to maximum drawdown	1.81	2.38	-0.58
Martin ratio: Return relative to average drawdown	6.68	10.45	-3.77

VSS vs. VV - Sharpe Ratio Comparison

The current VSS Sharpe Ratio is 1.33, which is comparable to the VV Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of VSS and VV, 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. VV - Drawdown Comparison

The maximum VSS drawdown since its inception was -43.51%, smaller than the maximum VV drawdown of -54.81%. Use the drawdown chart below to compare losses from any high point for VSS and VV.

Drawdown Indicators

	VSS	VV	Difference
Max Drawdown Largest peak-to-trough decline	-43.51%	-54.81%	+11.30%
Max Drawdown (1Y) Largest decline over 1 year	-11.62%	-9.21%	-2.41%
Max Drawdown (3Y) Largest decline over 3 years	-15.73%	-18.97%	+3.24%
Max Drawdown (5Y) Largest decline over 5 years	-33.93%	-25.66%	-8.27%
Max Drawdown (10Y) Largest decline over 10 years	-43.51%	-34.28%	-9.23%
Current Drawdown Current decline from peak	-5.12%	-3.30%	-1.82%
Average Drawdown Average peak-to-trough decline	-9.62%	-6.82%	-2.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.14%	2.10%	+1.04%

Volatility

VSS vs. VV - Volatility Comparison

Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a higher volatility of 6.52% compared to Vanguard Large-Cap ETF (VV) at 4.92%. This indicates that VSS's price experiences larger fluctuations and is considered to be riskier than VV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSS	VV	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.52%	4.92%	+1.60%
Volatility (6M) Calculated over the trailing 6-month period	13.86%	9.90%	+3.96%
Volatility (1Y) Calculated over the trailing 1-year period	15.79%	12.63%	+3.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.63%	17.33%	-0.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.16%	18.21%	-1.05%

VSS vs. VV - Expense Ratio Comparison

VSS has a 0.07% expense ratio, which is higher than VV's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VSS vs. VV - Dividend Comparison

VSS's dividend yield for the trailing twelve months is around 3.24%, more than VV's 1.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.24%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%
VV Vanguard Large-Cap ETF	1.00%	1.08%	1.24%	1.41%	1.66%	1.19%	1.46%	1.81%	2.09%	1.75%	1.98%	1.96%

Frequently Asked Questions

Can I hold both VSS and VV in my portfolio?

VSS and VV have a correlation of 0.77, 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 VV?

VSS has higher volatility (6.52%) compared to VV (4.92%). In terms of maximum drawdown, VSS dropped -43.51% vs VV's -54.81%.

Which ETF is better, VSS or VV?

On 10-year performance, VV leads with 15.61% vs 8.45% for VSS. On fees, VV is cheaper at 0.04% per year. On volatility, VV has been the lower-risk option at 4.92%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSS or VV?

Over the 10-year period, VV has performed better with a 15.61% return vs 8.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSS or VV?

VV is cheaper with a 0.04% expense ratio, compared with 0.07% for VSS.

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

VSS has the higher dividend yield at 3.24%, compared with 1.00% for VV.

What is the main difference between VSS and VV?

VSS is categorized as Foreign Small & Mid Cap Equities, while VV is Large Cap Blend Equities. VSS tracks FTSE Global Small Cap ex US Index, while VV tracks CRSP US Large Cap Index. Their fees differ too: 0.07% for VSS and 0.04% for VV.

Which has better risk-adjusted returns?

VV currently has the higher Sharpe Ratio (1.74 vs 1.33), 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.