VSS vs. VYMI

Last updated Jun 18, 2026

VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) and VYMI (Vanguard International High Dividend Yield 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 VYMI is a Dividend fund tracking the FTSE All-World ex US High Dividend Yield Index. Both are passively managed. Over the past 10 years, VSS returned 8.40%/yr vs 10.97%/yr for VYMI. Their correlation of 0.90 suggests significant overlap in exposure. Both charge a 0.07% expense ratio.

Performance

VSS vs. VYMI - 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 International High Dividend Yield ETF (VYMI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSS achieves a 10.11% return, which is significantly lower than VYMI's 12.52% return. Over the past 10 years, VSS has underperformed VYMI with an annualized return of 8.40%, while VYMI has yielded a comparatively higher 10.97% annualized return.

VSS

• 1D: -0.84%
• 1M: -0.16%
• YTD: 10.11%
• 6M: 12.92%
• 1Y: 25.39%
• 3Y*: 15.47%
• 5Y*: 6.35%
• 10Y*: 8.40%

VYMI

• 1D: -0.97%
• 1M: 1.22%
• YTD: 12.52%
• 6M: 14.83%
• 1Y: 31.77%
• 3Y*: 21.05%
• 5Y*: 13.03%
• 10Y*: 10.97%

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

VSS vs. VYMI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	10.11%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%
VYMI Vanguard International High Dividend Yield ETF	12.52%	38.05%	7.06%	17.07%	-7.02%	15.39%	-1.11%	18.43%	-12.65%	22.36%

Correlation

The correlation between VSS and VYMI is 0.86, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Mar 2, 2016	0.90

The correlation between VSS and VYMI has been stable across timeframes, ranging from 0.86 to 0.91 - a consistent structural relationship.

VSS vs. VYMI - Sectors Allocation Comparison

Sectors	VSS	VYMI
Industrials	19.9%	6.6%
Basic Materials	16.0%	6.8%
Financial Services	14.2%	41.9%
Technology	13.9%	4.3%
Energy	8.4%	9.5%
Consumer Cyclical	7.3%	6.5%
Real Estate	7.2%	1.3%
Healthcare	4.3%	6.6%
Utilities	3.6%	5.6%
Consumer Defensive	2.7%	7.0%
Communication Services	2.0%	4.0%

Return for Risk

VSS vs. VYMI — Risk / Return Rank

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

VSS

VSS Risk / Return Rank: 49
VSS Sharpe Ratio Rank: 50
VSS Sortino Ratio Rank: 48
VSS Omega Ratio Rank: 51
VSS Calmar Ratio Rank: 46
VSS Martin Ratio Rank: 51

VYMI

VYMI Risk / Return Rank: 76
VYMI Sharpe Ratio Rank: 82
VYMI Sortino Ratio Rank: 80
VYMI Omega Ratio Rank: 80
VYMI Calmar Ratio Rank: 67
VYMI Martin Ratio Rank: 71

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. VYMI - 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 International High Dividend Yield ETF (VYMI). 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	VYMI	Difference
Sharpe ratio: Return per unit of total volatility	1.64	2.41	-0.78
Sortino ratio: Return per unit of downside risk	2.26	3.28	-1.03
Omega ratio: Gain probability vs. loss probability	1.30	1.44	-0.13
Calmar ratio: Return relative to maximum drawdown	2.20	3.15	-0.95
Martin ratio: Return relative to average drawdown	8.22	12.36	-4.14

VSS vs. VYMI - Sharpe Ratio Comparison

The current VSS Sharpe Ratio is 1.64, which is lower than the VYMI Sharpe Ratio of 2.41. The chart below compares the historical Sharpe Ratios of VSS and VYMI, 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. VYMI - Drawdown Comparison

The maximum VSS drawdown since its inception was -43.51%, which is greater than VYMI's maximum drawdown of -40.00%. Use the drawdown chart below to compare losses from any high point for VSS and VYMI.

Drawdown Indicators

	VSS	VYMI	Difference
Max Drawdown Largest peak-to-trough decline	-43.51%	-40.00%	-3.51%
Max Drawdown (1Y) Largest decline over 1 year	-11.62%	-10.14%	-1.48%
Max Drawdown (3Y) Largest decline over 3 years	-15.73%	-12.84%	-2.89%
Max Drawdown (5Y) Largest decline over 5 years	-33.93%	-24.05%	-9.88%
Max Drawdown (10Y) Largest decline over 10 years	-43.51%	-40.00%	-3.51%
Current Drawdown Current decline from peak	-2.99%	-0.97%	-2.02%
Average Drawdown Average peak-to-trough decline	-9.63%	-6.29%	-3.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	2.58%	+0.52%

Volatility

VSS vs. VYMI - Volatility Comparison

Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a higher volatility of 6.34% compared to Vanguard International High Dividend Yield ETF (VYMI) at 4.20%. This indicates that VSS's price experiences larger fluctuations and is considered to be riskier than VYMI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSS	VYMI	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.34%	4.20%	+2.14%
Volatility (6M) Calculated over the trailing 6-month period	13.63%	11.17%	+2.46%
Volatility (1Y) Calculated over the trailing 1-year period	15.62%	13.30%	+2.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.61%	14.91%	+1.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.30%	16.85%	+0.45%

VSS vs. VYMI - Expense Ratio Comparison

Both VSS and VYMI have an expense ratio of 0.07%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VSS vs. VYMI - Dividend Comparison

VSS's dividend yield for the trailing twelve months is around 3.08%, less than VYMI's 3.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.08%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%
VYMI Vanguard International High Dividend Yield ETF	3.41%	3.68%	4.84%	4.58%	4.70%	4.30%	3.22%	4.20%	4.29%	3.21%	2.39%	0.00%

Frequently Asked Questions

Can I hold both VSS and VYMI in my portfolio?

VSS and VYMI have a correlation of 0.86, 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 VYMI?

VSS has higher volatility (6.34%) compared to VYMI (4.20%). In terms of maximum drawdown, VSS dropped -43.51% vs VYMI's -40.00%.

Which ETF is better, VSS or VYMI?

On 10-year performance, VYMI leads with 10.97% vs 8.40% for VSS. Both ETFs have the same 0.07% expense ratio. On volatility, VYMI has been the lower-risk option at 4.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSS or VYMI?

Over the 10-year period, VYMI has performed better with a 10.97% return vs 8.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSS or VYMI?

VSS and VYMI have the same expense ratio: 0.07% per year.

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

VYMI has the higher dividend yield at 3.41%, compared with 3.08% for VSS.

What is the main difference between VSS and VYMI?

VSS is categorized as Foreign Small & Mid Cap Equities, while VYMI is Dividend. VSS tracks FTSE Global Small Cap ex US Index, while VYMI tracks FTSE All-World ex US High Dividend Yield Index.

Which has better risk-adjusted returns?

VYMI currently has the higher Sharpe Ratio (2.41 vs 1.64), 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.