VTHR vs. VTWO

Last updated Jun 4, 2026

VTHR (Vanguard Russell 3000 ETF) and VTWO (Vanguard Russell 2000 ETF) are both exchange-traded funds - VTHR is a Large Cap Blend Equities fund tracking the Russell 3000 Index, while VTWO is a Small Cap Blend Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 10 years, VTHR returned 14.95%/yr vs 11.07%/yr for VTWO. Their correlation of 0.84 suggests significant overlap in exposure. VTHR charges 0.07%/yr vs 0.10%/yr for VTWO.

Performance

VTHR vs. VTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 3000 ETF (VTHR) and Vanguard Russell 2000 ETF (VTWO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTHR achieves a 10.94% return, which is significantly lower than VTWO's 17.08% return. Over the past 10 years, VTHR has outperformed VTWO with an annualized return of 14.95%, while VTWO has yielded a comparatively lower 11.07% annualized return.

VTHR

• 1D: -0.70%
• 1M: 4.88%
• YTD: 10.94%
• 6M: 10.83%
• 1Y: 27.71%
• 3Y*: 21.93%
• 5Y*: 12.66%
• 10Y*: 14.95%

VTWO

• 1D: -1.38%
• 1M: 3.51%
• YTD: 17.08%
• 6M: 15.89%
• 1Y: 39.34%
• 3Y*: 18.11%
• 5Y*: 6.28%
• 10Y*: 11.07%

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

VTHR vs. VTWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTHR Vanguard Russell 3000 ETF	10.94%	16.99%	23.57%	25.92%	-19.20%	25.49%	20.93%	30.82%	-5.65%	21.06%
VTWO Vanguard Russell 2000 ETF	17.08%	12.90%	11.55%	17.08%	-20.49%	14.79%	20.22%	25.81%	-11.15%	14.69%

Correlation

The correlation between VTHR and VTWO is 0.84, 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	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Sep 23, 2010	0.84

The correlation between VTHR and VTWO has been stable across timeframes, ranging from 0.82 to 0.86 - a consistent structural relationship.

VTHR vs. VTWO - Sectors Allocation Comparison

Sectors	VTHR	VTWO
Technology	33.1%	17.0%
Financial Services	12.1%	15.7%
Communication Services	10.5%	2.4%
Consumer Cyclical	10.2%	8.4%
Industrials	9.6%	17.7%
Healthcare	9.1%	16.5%
Consumer Defensive	4.7%	2.4%
Energy	3.8%	6.1%
Real Estate	2.4%	6.1%
Utilities	2.3%	2.9%
Basic Materials	2.2%	4.8%

Return for Risk

VTHR vs. VTWO — Risk / Return Rank

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

VTHR

VTHR Risk / Return Rank: 67
VTHR Sharpe Ratio Rank: 67
VTHR Sortino Ratio Rank: 67
VTHR Omega Ratio Rank: 65
VTHR Calmar Ratio Rank: 62
VTHR Martin Ratio Rank: 74

VTWO

VTWO Risk / Return Rank: 62
VTWO Sharpe Ratio Rank: 60
VTWO Sortino Ratio Rank: 60
VTWO Omega Ratio Rank: 54
VTWO Calmar Ratio Rank: 71
VTWO Martin Ratio Rank: 68

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.

VTHR vs. VTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 3000 ETF (VTHR) and Vanguard Russell 2000 ETF (VTWO). 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.

	VTHR	VTWO	Difference
Sharpe ratio: Return per unit of total volatility	2.27	2.07	+0.19
Sortino ratio: Return per unit of downside risk	3.13	2.88	+0.25
Omega ratio: Gain probability vs. loss probability	1.40	1.34	+0.06
Calmar ratio: Return relative to maximum drawdown	3.12	3.60	-0.47
Martin ratio: Return relative to average drawdown	14.34	12.79	+1.55
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTHR vs. VTWO - Sharpe Ratio Comparison

The current VTHR Sharpe Ratio is 2.27, which is comparable to the VTWO Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of VTHR and VTWO, 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

	VTHR	VTWO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.27	2.07	+0.19
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.74	0.28	+0.46
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	0.48	+0.36
Sharpe Ratio (All Time) Calculated using the full available price history	0.86	0.52	+0.33

Drawdowns

VTHR vs. VTWO - Drawdown Comparison

The maximum VTHR drawdown since its inception was -34.61%, smaller than the maximum VTWO drawdown of -41.19%. Use the drawdown chart below to compare losses from any high point for VTHR and VTWO.

Drawdown Indicators

	VTHR	VTWO	Difference
Max Drawdown Largest peak-to-trough decline	-34.61%	-41.19%	+6.58%
Max Drawdown (1Y) Largest decline over 1 year	-8.91%	-10.99%	+2.08%
Max Drawdown (3Y) Largest decline over 3 years	-19.36%	-27.57%	+8.21%
Max Drawdown (5Y) Largest decline over 5 years	-25.06%	-31.88%	+6.82%
Max Drawdown (10Y) Largest decline over 10 years	-34.61%	-41.19%	+6.58%
Current Drawdown Current decline from peak	-0.70%	-1.50%	+0.80%
Average Drawdown Average peak-to-trough decline	-4.04%	-8.39%	+4.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.94%	3.08%	-1.14%

Volatility

VTHR vs. VTWO - Volatility Comparison

The current volatility for Vanguard Russell 3000 ETF (VTHR) is 2.98%, while Vanguard Russell 2000 ETF (VTWO) has a volatility of 5.73%. This indicates that VTHR experiences smaller price fluctuations and is considered to be less risky than VTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTHR	VTWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.98%	5.73%	-2.75%
Volatility (6M) Calculated over the trailing 6-month period	9.28%	13.50%	-4.22%
Volatility (1Y) Calculated over the trailing 1-year period	12.30%	19.12%	-6.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.30%	22.48%	-5.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.84%	23.08%	-5.24%

VTHR vs. VTWO - Expense Ratio Comparison

VTHR has a 0.07% expense ratio, which is lower than VTWO's 0.10% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VTHR vs. VTWO - Dividend Comparison

VTHR's dividend yield for the trailing twelve months is around 1.00%, less than VTWO's 1.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTHR Vanguard Russell 3000 ETF	1.00%	1.08%	1.19%	1.47%	1.52%	1.16%	1.37%	1.65%	1.89%	1.63%	1.82%	1.84%
VTWO Vanguard Russell 2000 ETF	1.08%	1.25%	1.21%	1.45%	1.48%	1.13%	0.92%	1.36%	1.41%	1.18%	1.27%	1.23%

Frequently Asked Questions

Can I hold both VTHR and VTWO in my portfolio?

VTHR and VTWO have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTHR or VTWO?

VTWO has higher volatility (5.73%) compared to VTHR (2.98%). In terms of maximum drawdown, VTHR dropped -34.61% vs VTWO's -41.19%.

Which ETF is better, VTHR or VTWO?

On 10-year performance, VTHR leads with 14.95% vs 11.07% for VTWO. On fees, VTHR is cheaper at 0.07% per year. On volatility, VTHR has been the lower-risk option at 2.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTHR or VTWO?

Over the 10-year period, VTHR has performed better with a 14.95% return vs 11.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTHR or VTWO?

VTHR is cheaper with a 0.07% expense ratio, compared with 0.10% for VTWO.

Which ETF pays a higher dividend yield, VTHR or VTWO?

VTWO has the higher dividend yield at 1.08%, compared with 1.00% for VTHR.

What is the main difference between VTHR and VTWO?

VTHR is categorized as Large Cap Blend Equities, while VTWO is Small Cap Blend Equities. VTHR tracks Russell 3000 Index, while VTWO tracks Russell 2000 Index. Their fees differ too: 0.07% for VTHR and 0.10% for VTWO.

Which has better risk-adjusted returns?

VTHR currently has the higher Sharpe Ratio (2.27 vs 2.07), 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.