VSTCX vs. SMLF

Last updated Jun 4, 2026

VSTCX (Vanguard Strategic Small-Cap Equity Fund) and SMLF (iShares MSCI USA Small-Cap Multifactor ETF) are both Small Cap Blend Equities funds. Over the past 10 years, VSTCX returned 12.71%/yr vs 12.36%/yr for SMLF. Their correlation of 0.91 suggests significant overlap in exposure. VSTCX charges 0.26%/yr vs 0.30%/yr for SMLF.

Performance

VSTCX vs. SMLF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Strategic Small-Cap Equity Fund (VSTCX) and iShares MSCI USA Small-Cap Multifactor ETF (SMLF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSTCX achieves a 18.22% return, which is significantly higher than SMLF's 14.46% return. Both investments have delivered pretty close results over the past 10 years, with VSTCX having a 12.71% annualized return and SMLF not far behind at 12.36%.

VSTCX

• 1D: 0.58%
• 1M: 3.68%
• YTD: 18.22%
• 6M: 18.42%
• 1Y: 41.82%
• 3Y*: 22.14%
• 5Y*: 11.88%
• 10Y*: 12.71%

SMLF

• 1D: -0.72%
• 1M: 4.07%
• YTD: 14.46%
• 6M: 14.20%
• 1Y: 30.98%
• 3Y*: 19.85%
• 5Y*: 10.89%
• 10Y*: 12.36%

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

VSTCX vs. SMLF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSTCX Vanguard Strategic Small-Cap Equity Fund	18.22%	15.20%	15.40%	21.34%	-13.00%	33.53%	8.38%	22.18%	-11.87%	9.21%
SMLF iShares MSCI USA Small-Cap Multifactor ETF	14.46%	12.30%	16.33%	19.99%	-12.19%	26.53%	8.38%	21.56%	-8.42%	12.70%

Correlation

The correlation between VSTCX and SMLF is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since May 1, 2015	0.91

The correlation between VSTCX and SMLF has been stable across timeframes, ranging from 0.91 to 0.98 - a consistent structural relationship.

VSTCX vs. SMLF - Sectors Allocation Comparison

Sectors	VSTCX	SMLF
Financial Services	18.3%	15.0%
Industrials	16.1%	19.8%
Technology	14.9%	16.6%
Healthcare	14.1%	12.7%
Consumer Cyclical	11.1%	11.8%
Real Estate	6.5%	5.7%
Energy	6.2%	4.8%
Basic Materials	5.2%	4.6%
Consumer Defensive	3.0%	3.7%
Communication Services	2.4%	3.2%
Utilities	2.3%	2.2%

Return for Risk

VSTCX vs. SMLF — Risk / Return Rank

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

VSTCX

VSTCX Risk / Return Rank: 78
VSTCX Sharpe Ratio Rank: 75
VSTCX Sortino Ratio Rank: 70
VSTCX Omega Ratio Rank: 59
VSTCX Calmar Ratio Rank: 94
VSTCX Martin Ratio Rank: 92

SMLF

SMLF Risk / Return Rank: 58
SMLF Sharpe Ratio Rank: 52
SMLF Sortino Ratio Rank: 52
SMLF Omega Ratio Rank: 48
SMLF Calmar Ratio Rank: 71
SMLF Martin Ratio Rank: 66

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.

VSTCX vs. SMLF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Strategic Small-Cap Equity Fund (VSTCX) and iShares MSCI USA Small-Cap Multifactor ETF (SMLF). 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.

	VSTCX	SMLF	Difference
Sharpe ratio: Return per unit of total volatility	2.50	1.81	+0.69
Sortino ratio: Return per unit of downside risk	3.47	2.56	+0.91
Omega ratio: Gain probability vs. loss probability	1.43	1.31	+0.12
Calmar ratio: Return relative to maximum drawdown	5.44	3.57	+1.87
Martin ratio: Return relative to average drawdown	19.17	12.27	+6.91
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VSTCX vs. SMLF - Sharpe Ratio Comparison

The current VSTCX Sharpe Ratio is 2.50, which is higher than the SMLF Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of VSTCX and SMLF, 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

	VSTCX	SMLF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.50	1.81	+0.69
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	0.52	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.54	0.57	-0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.54	-0.15

Drawdowns

VSTCX vs. SMLF - Drawdown Comparison

The maximum VSTCX drawdown since its inception was -62.50%, which is greater than SMLF's maximum drawdown of -41.89%. Use the drawdown chart below to compare losses from any high point for VSTCX and SMLF.

Drawdown Indicators

	VSTCX	SMLF	Difference
Max Drawdown Largest peak-to-trough decline	-62.50%	-41.89%	-20.61%
Max Drawdown (1Y) Largest decline over 1 year	-8.08%	-8.71%	+0.63%
Max Drawdown (3Y) Largest decline over 3 years	-27.47%	-26.28%	-1.19%
Max Drawdown (5Y) Largest decline over 5 years	-27.47%	-26.28%	-1.19%
Max Drawdown (10Y) Largest decline over 10 years	-48.08%	-41.89%	-6.19%
Current Drawdown Current decline from peak	0.00%	-0.72%	+0.72%
Average Drawdown Average peak-to-trough decline	-10.65%	-6.60%	-4.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.29%	2.53%	-0.24%

Volatility

VSTCX vs. SMLF - Volatility Comparison

The current volatility for Vanguard Strategic Small-Cap Equity Fund (VSTCX) is 4.49%, while iShares MSCI USA Small-Cap Multifactor ETF (SMLF) has a volatility of 4.80%. This indicates that VSTCX experiences smaller price fluctuations and is considered to be less risky than SMLF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSTCX	SMLF	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.49%	4.80%	-0.31%
Volatility (6M) Calculated over the trailing 6-month period	11.97%	12.31%	-0.34%
Volatility (1Y) Calculated over the trailing 1-year period	17.57%	17.21%	+0.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.99%	21.09%	+0.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.47%	21.78%	+1.69%

VSTCX vs. SMLF - Expense Ratio Comparison

VSTCX has a 0.26% expense ratio, which is lower than SMLF's 0.30% expense ratio.

Dividends

VSTCX vs. SMLF - Dividend Comparison

VSTCX's dividend yield for the trailing twelve months is around 6.38%, more than SMLF's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SMLF iShares MSCI USA Small-Cap Multifactor ETF	1.03%	1.14%	1.33%	1.13%	1.23%	1.07%	1.33%	1.39%	1.17%	0.93%	0.78%	0.79%
VSTCX Vanguard Strategic Small-Cap Equity Fund	6.38%	7.55%	9.66%	2.50%	7.44%	19.92%	1.24%	4.14%	11.74%	5.76%	1.35%	2.33%

Frequently Asked Questions

Can I hold both VSTCX and SMLF in my portfolio?

With a correlation of 0.96, VSTCX and SMLF 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.

Which is riskier, VSTCX or SMLF?

SMLF has higher volatility (4.80%) compared to VSTCX (4.49%). In terms of maximum drawdown, VSTCX dropped -62.50% vs SMLF's -41.89%.

Which has better risk-adjusted returns?

VSTCX currently has the higher Sharpe Ratio (2.50 vs 1.81), 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.