VSTCX vs. VFIAX

Last updated Jun 23, 2026

VSTCX (Vanguard Strategic Small-Cap Equity Fund) and VFIAX (Vanguard 500 Index Fund Admiral Shares) are both mutual funds - VSTCX is a Small Cap Blend Equities fund managed by Vanguard, while VFIAX is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, VSTCX returned 13.03%/yr vs 15.54%/yr for VFIAX. Their correlation of 0.87 suggests significant overlap in exposure. VSTCX charges 0.26%/yr vs 0.04%/yr for VFIAX.

Performance

VSTCX vs. VFIAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Strategic Small-Cap Equity Fund (VSTCX) and Vanguard 500 Index Fund Admiral Shares (VFIAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSTCX achieves a 20.84% return, which is significantly higher than VFIAX's 10.17% return. Over the past 10 years, VSTCX has underperformed VFIAX with an annualized return of 13.03%, while VFIAX has yielded a comparatively higher 15.54% annualized return.

VSTCX

• 1D: 1.49%
• 1M: 4.62%
• YTD: 20.84%
• 6M: 18.00%
• 1Y: 45.39%
• 3Y*: 21.98%
• 5Y*: 13.15%
• 10Y*: 13.03%

VFIAX

• 1D: 1.09%
• 1M: 0.46%
• YTD: 10.17%
• 6M: 9.67%
• 1Y: 27.15%
• 3Y*: 20.95%
• 5Y*: 14.06%
• 10Y*: 15.54%

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

VSTCX vs. VFIAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSTCX Vanguard Strategic Small-Cap Equity Fund	20.84%	15.20%	15.40%	21.34%	-13.00%	33.53%	8.38%	22.18%	-11.87%	9.21%
VFIAX Vanguard 500 Index Fund Admiral Shares	10.17%	17.83%	24.97%	26.24%	-18.16%	28.65%	18.32%	31.46%	-4.45%	21.78%

Correlation

The correlation between VSTCX and VFIAX is 0.79, 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	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since Apr 20, 2006	0.87

The correlation between VSTCX and VFIAX has been stable across timeframes, ranging from 0.78 to 0.87 - a consistent structural relationship.

VSTCX vs. VFIAX - Sectors Allocation Comparison

Sectors	VSTCX	VFIAX
Financial Services	18.3%	10.9%
Industrials	16.1%	7.6%
Technology	14.9%	39.1%
Healthcare	14.1%	8.3%
Consumer Cyclical	11.1%	9.8%
Real Estate	6.5%	1.8%
Energy	6.2%	3.2%
Basic Materials	5.2%	1.7%
Consumer Defensive	3.0%	4.5%
Communication Services	2.4%	10.5%
Utilities	2.3%	2.5%

Return for Risk

VSTCX vs. VFIAX — Risk / Return Rank

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

VSTCX

VSTCX Risk / Return Rank: 85
VSTCX Sharpe Ratio Rank: 84
VSTCX Sortino Ratio Rank: 81
VSTCX Omega Ratio Rank: 71
VSTCX Calmar Ratio Rank: 96
VSTCX Martin Ratio Rank: 95

VFIAX

VFIAX Risk / Return Rank: 66
VFIAX Sharpe Ratio Rank: 64
VFIAX Sortino Ratio Rank: 58
VFIAX Omega Ratio Rank: 61
VFIAX Calmar Ratio Rank: 68
VFIAX Martin Ratio Rank: 79

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. VFIAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Strategic Small-Cap Equity Fund (VSTCX) and Vanguard 500 Index Fund Admiral Shares (VFIAX). 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.

	VSTCX	VFIAX	Difference
Sharpe ratio: Return per unit of total volatility	2.54	2.17	+0.38
Sortino ratio: Return per unit of downside risk	3.51	2.93	+0.59
Omega ratio: Gain probability vs. loss probability	1.43	1.39	+0.04
Calmar ratio: Return relative to maximum drawdown	5.62	3.03	+2.59
Martin ratio: Return relative to average drawdown	19.82	13.72	+6.10

VSTCX vs. VFIAX - Sharpe Ratio Comparison

The current VSTCX Sharpe Ratio is 2.54, which is comparable to the VFIAX Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of VSTCX and VFIAX, 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

VSTCX vs. VFIAX - Drawdown Comparison

The maximum VSTCX drawdown since its inception was -62.50%, which is greater than VFIAX's maximum drawdown of -55.20%. Use the drawdown chart below to compare losses from any high point for VSTCX and VFIAX.

Drawdown Indicators

	VSTCX	VFIAX	Difference
Max Drawdown Largest peak-to-trough decline	-62.50%	-55.20%	-7.30%
Max Drawdown (1Y) Largest decline over 1 year	-8.08%	-8.90%	+0.82%
Max Drawdown (3Y) Largest decline over 3 years	-27.47%	-18.75%	-8.72%
Max Drawdown (5Y) Largest decline over 5 years	-27.47%	-24.53%	-2.94%
Max Drawdown (10Y) Largest decline over 10 years	-48.08%	-33.83%	-14.25%
Current Drawdown Current decline from peak	0.00%	-1.36%	+1.36%
Average Drawdown Average peak-to-trough decline	-10.63%	-9.38%	-1.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.29%	1.96%	+0.33%

Volatility

VSTCX vs. VFIAX - Volatility Comparison

Vanguard Strategic Small-Cap Equity Fund (VSTCX) has a higher volatility of 5.38% compared to Vanguard 500 Index Fund Admiral Shares (VFIAX) at 4.77%. This indicates that VSTCX's price experiences larger fluctuations and is considered to be riskier than VFIAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSTCX	VFIAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.38%	4.77%	+0.61%
Volatility (6M) Calculated over the trailing 6-month period	12.52%	9.91%	+2.61%
Volatility (1Y) Calculated over the trailing 1-year period	17.85%	12.47%	+5.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.02%	17.00%	+5.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.49%	18.11%	+5.38%

VSTCX vs. VFIAX - Expense Ratio Comparison

VSTCX has a 0.26% expense ratio, which is higher than VFIAX'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

VSTCX vs. VFIAX - Dividend Comparison

VSTCX's dividend yield for the trailing twelve months is around 6.25%, more than VFIAX's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFIAX Vanguard 500 Index Fund Admiral Shares	1.03%	1.12%	1.24%	1.45%	1.68%	1.24%	1.53%	1.87%	2.05%	1.78%	2.02%	2.10%
VSTCX Vanguard Strategic Small-Cap Equity Fund	6.25%	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 VFIAX in my portfolio?

VSTCX and VFIAX have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VSTCX or VFIAX?

VSTCX has higher volatility (5.38%) compared to VFIAX (4.77%). In terms of maximum drawdown, VSTCX dropped -62.50% vs VFIAX's -55.20%.

Which has better risk-adjusted returns?

VSTCX currently has the higher Sharpe Ratio (2.54 vs 2.17), 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.