VSTCX vs. VSMAX

Last updated Jun 4, 2026

VSTCX (Vanguard Strategic Small-Cap Equity Fund) and VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) are both Small Cap Blend Equities funds from Vanguard. Over the past 10 years, VSTCX returned 12.71%/yr vs 11.37%/yr for VSMAX. With a 0.98 correlation, they move nearly in lockstep. VSTCX charges 0.26%/yr vs 0.05%/yr for VSMAX.

Performance

VSTCX vs. VSMAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Strategic Small-Cap Equity Fund (VSTCX) and Vanguard Small-Cap Index Fund Admiral Shares (VSMAX). 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 VSMAX's 14.94% return. Over the past 10 years, VSTCX has outperformed VSMAX with an annualized return of 12.71%, while VSMAX has yielded a comparatively lower 11.37% annualized 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%

VSMAX

• 1D: 0.80%
• 1M: 4.24%
• YTD: 14.94%
• 6M: 14.89%
• 1Y: 29.65%
• 3Y*: 17.30%
• 5Y*: 7.34%
• 10Y*: 11.37%

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

VSTCX vs. VSMAX - 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%
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	14.94%	8.83%	14.23%	18.17%	-17.61%	17.74%	19.06%	27.36%	-9.33%	16.24%

Correlation

The correlation between VSTCX and VSMAX is 0.95 - 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	0.95
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	0.98
Correlation (All Time) Calculated using the full available price history since Apr 21, 2006	0.98

The correlation between VSTCX and VSMAX has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.

VSTCX vs. VSMAX - Sectors Allocation Comparison

Sectors	VSTCX	VSMAX
Financial Services	18.3%	12.6%
Industrials	16.1%	20.8%
Technology	14.9%	17.2%
Healthcare	14.1%	11.1%
Consumer Cyclical	11.1%	11.3%
Real Estate	6.5%	7.6%
Energy	6.2%	4.7%
Basic Materials	5.2%	4.8%
Consumer Defensive	3.0%	3.4%
Communication Services	2.4%	3.1%
Utilities	2.3%	3.3%

Return for Risk

VSTCX vs. VSMAX — 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

VSMAX

VSMAX Risk / Return Rank: 54
VSMAX Sharpe Ratio Rank: 44
VSMAX Sortino Ratio Rank: 43
VSMAX Omega Ratio Rank: 40
VSMAX Calmar Ratio Rank: 77
VSMAX Martin Ratio Rank: 67

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. VSMAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Strategic Small-Cap Equity Fund (VSTCX) and Vanguard Small-Cap Index Fund Admiral Shares (VSMAX). 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	VSMAX	Difference
Sharpe ratio: Return per unit of total volatility	2.50	1.94	+0.57
Sortino ratio: Return per unit of downside risk	3.47	2.74	+0.72
Omega ratio: Gain probability vs. loss probability	1.43	1.33	+0.09
Calmar ratio: Return relative to maximum drawdown	5.44	3.51	+1.93
Martin ratio: Return relative to average drawdown	19.17	12.97	+6.20
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. VSMAX - Sharpe Ratio Comparison

The current VSTCX Sharpe Ratio is 2.50, which is comparable to the VSMAX Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of VSTCX and VSMAX, 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	VSMAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.50	1.94	+0.57
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	0.36	+0.19
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.54	0.53	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.39	-0.01

Drawdowns

VSTCX vs. VSMAX - Drawdown Comparison

The maximum VSTCX drawdown since its inception was -62.50%, roughly equal to the maximum VSMAX drawdown of -59.68%. Use the drawdown chart below to compare losses from any high point for VSTCX and VSMAX.

Drawdown Indicators

	VSTCX	VSMAX	Difference
Max Drawdown Largest peak-to-trough decline	-62.50%	-59.68%	-2.82%
Max Drawdown (1Y) Largest decline over 1 year	-8.08%	-8.97%	+0.89%
Max Drawdown (3Y) Largest decline over 3 years	-27.47%	-25.25%	-2.22%
Max Drawdown (5Y) Largest decline over 5 years	-27.47%	-28.14%	+0.67%
Max Drawdown (10Y) Largest decline over 10 years	-48.08%	-41.82%	-6.26%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-10.65%	-9.70%	-0.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.29%	2.43%	-0.14%

Volatility

VSTCX vs. VSMAX - Volatility Comparison

Vanguard Strategic Small-Cap Equity Fund (VSTCX) and Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) have volatilities of 4.49% and 4.40%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSTCX	VSMAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.49%	4.40%	+0.09%
Volatility (6M) Calculated over the trailing 6-month period	11.97%	11.72%	+0.25%
Volatility (1Y) Calculated over the trailing 1-year period	17.57%	16.27%	+1.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.99%	20.71%	+1.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.47%	21.57%	+1.90%

VSTCX vs. VSMAX - Expense Ratio Comparison

VSTCX has a 0.26% expense ratio, which is higher than VSMAX's 0.05% 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. VSMAX - Dividend Comparison

VSTCX's dividend yield for the trailing twelve months is around 6.38%, more than VSMAX's 1.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VSMAX Vanguard Small-Cap Index Fund Admiral Shares	1.18%	1.33%	1.30%	1.56%	1.54%	1.24%	1.14%	1.39%	1.67%	1.35%	1.49%	1.48%
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 VSMAX in my portfolio?

With a correlation of 0.95, VSTCX and VSMAX 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 VSMAX?

VSTCX has higher volatility (4.49%) compared to VSMAX (4.40%). In terms of maximum drawdown, VSTCX dropped -62.50% vs VSMAX's -59.68%.

Which has better risk-adjusted returns?

VSTCX currently has the higher Sharpe Ratio (2.50 vs 1.94), 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.