VSTCX vs. VFMFX

Last updated Jun 4, 2026

VSTCX (Vanguard Strategic Small-Cap Equity Fund) and VFMFX (Vanguard U.S. Multifactor Fund Admiral Shares) are both mutual funds - VSTCX is a Small Cap Blend Equities fund managed by Vanguard, while VFMFX is a Multi-factor fund managed by Vanguard. Over the past 5 years, VSTCX returned 11.88%/yr vs 12.62%/yr for VFMFX. With a 0.96 correlation, they move nearly in lockstep. VSTCX charges 0.26%/yr vs 0.18%/yr for VFMFX.

Performance

VSTCX vs. VFMFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Strategic Small-Cap Equity Fund (VSTCX) and Vanguard U.S. Multifactor Fund Admiral Shares (VFMFX). 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 VFMFX's 14.65% return.

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%

VFMFX

• 1D: 0.49%
• 1M: 3.50%
• YTD: 14.65%
• 6M: 16.15%
• 1Y: 31.36%
• 3Y*: 21.75%
• 5Y*: 12.62%
• 10Y*: —

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

VSTCX vs. VFMFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VSTCX Vanguard Strategic Small-Cap Equity Fund	18.22%	15.20%	15.40%	21.34%	-13.00%	33.53%	8.38%	22.18%	-19.14%
VFMFX Vanguard U.S. Multifactor Fund Admiral Shares	14.65%	14.50%	17.21%	17.89%	-5.78%	30.78%	3.58%	21.81%	-14.83%

Correlation

The correlation between VSTCX and VFMFX is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jun 27, 2018	0.96

The correlation between VSTCX and VFMFX has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

Return for Risk

VSTCX vs. VFMFX — 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

VFMFX

VFMFX Risk / Return Rank: 76
VFMFX Sharpe Ratio Rank: 71
VFMFX Sortino Ratio Rank: 72
VFMFX Omega Ratio Rank: 60
VFMFX Calmar Ratio Rank: 89
VFMFX Martin Ratio Rank: 86

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. VFMFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Strategic Small-Cap Equity Fund (VSTCX) and Vanguard U.S. Multifactor Fund Admiral Shares (VFMFX). 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	VFMFX	Difference
Sharpe ratio: Return per unit of total volatility	2.50	2.46	+0.05
Sortino ratio: Return per unit of downside risk	3.47	3.54	-0.07
Omega ratio: Gain probability vs. loss probability	1.43	1.43	-0.01
Calmar ratio: Return relative to maximum drawdown	5.44	4.43	+1.02
Martin ratio: Return relative to average drawdown	19.17	16.46	+2.71
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. VFMFX - Sharpe Ratio Comparison

The current VSTCX Sharpe Ratio is 2.50, which is comparable to the VFMFX Sharpe Ratio of 2.46. The chart below compares the historical Sharpe Ratios of VSTCX and VFMFX, 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	VFMFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.50	2.46	+0.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	0.70	-0.16
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.54	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.55	-0.17

Drawdowns

VSTCX vs. VFMFX - Drawdown Comparison

The maximum VSTCX drawdown since its inception was -62.50%, which is greater than VFMFX's maximum drawdown of -41.18%. Use the drawdown chart below to compare losses from any high point for VSTCX and VFMFX.

Drawdown Indicators

	VSTCX	VFMFX	Difference
Max Drawdown Largest peak-to-trough decline	-62.50%	-41.18%	-21.32%
Max Drawdown (1Y) Largest decline over 1 year	-8.08%	-7.31%	-0.77%
Max Drawdown (3Y) Largest decline over 3 years	-27.47%	-21.18%	-6.29%
Max Drawdown (5Y) Largest decline over 5 years	-27.47%	-21.18%	-6.29%
Max Drawdown (10Y) Largest decline over 10 years	-48.08%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-10.65%	-5.89%	-4.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.29%	1.96%	+0.33%

Volatility

VSTCX vs. VFMFX - Volatility Comparison

Vanguard Strategic Small-Cap Equity Fund (VSTCX) has a higher volatility of 4.49% compared to Vanguard U.S. Multifactor Fund Admiral Shares (VFMFX) at 2.93%. This indicates that VSTCX's price experiences larger fluctuations and is considered to be riskier than VFMFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSTCX	VFMFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.49%	2.93%	+1.56%
Volatility (6M) Calculated over the trailing 6-month period	11.97%	9.23%	+2.74%
Volatility (1Y) Calculated over the trailing 1-year period	17.57%	13.18%	+4.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.99%	18.04%	+3.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.47%	21.26%	+2.21%

VSTCX vs. VFMFX - Expense Ratio Comparison

VSTCX has a 0.26% expense ratio, which is higher than VFMFX's 0.18% 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. VFMFX - Dividend Comparison

VSTCX's dividend yield for the trailing twelve months is around 6.38%, more than VFMFX's 2.74% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFMFX Vanguard U.S. Multifactor Fund Admiral Shares	2.74%	2.69%	3.29%	1.66%	2.09%	1.37%	1.48%	1.63%	1.45%	0.00%	0.00%	0.00%
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 VFMFX in my portfolio?

With a correlation of 0.94, VSTCX and VFMFX 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 VFMFX?

VSTCX has higher volatility (4.49%) compared to VFMFX (2.93%). In terms of maximum drawdown, VSTCX dropped -62.50% vs VFMFX's -41.18%.

Which has better risk-adjusted returns?

VSTCX currently has the higher Sharpe Ratio (2.50 vs 2.46), 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.