VTMSX vs. BFMSX

Last updated Jun 25, 2026

VTMSX (Vanguard Tax-Managed Small-Cap Fund Admiral Shares) and BFMSX (BlackRock Low Duration Bond Portfolio) are both mutual funds - VTMSX is a Small Cap Blend Equities fund managed by BlackRock, while BFMSX is a Short-Term Bond fund managed by BlackRock. Over the past 10 years, VTMSX returned 11.34%/yr vs 2.25%/yr for BFMSX. At a correlation of -0.06, they often move in opposite directions. VTMSX charges 0.09%/yr vs 0.41%/yr for BFMSX.

Performance

VTMSX vs. BFMSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) and BlackRock Low Duration Bond Portfolio (BFMSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTMSX achieves a 19.68% return, which is significantly higher than BFMSX's 0.59% return. Over the past 10 years, VTMSX has outperformed BFMSX with an annualized return of 11.34%, while BFMSX has yielded a comparatively lower 2.25% annualized return.

VTMSX

• 1D: -0.37%
• 1M: 4.28%
• YTD: 19.68%
• 6M: 16.75%
• 1Y: 33.50%
• 3Y*: 16.27%
• 5Y*: 6.42%
• 10Y*: 11.34%

BFMSX

• 1D: 0.00%
• 1M: 0.28%
• YTD: 0.59%
• 6M: 0.98%
• 1Y: 3.95%
• 3Y*: 5.06%
• 5Y*: 2.06%
• 10Y*: 2.25%

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

VTMSX vs. BFMSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTMSX Vanguard Tax-Managed Small-Cap Fund Admiral Shares	19.68%	5.93%	8.61%	15.95%	-16.16%	27.08%	11.05%	23.28%	-8.62%	13.05%
BFMSX BlackRock Low Duration Bond Portfolio	0.59%	6.20%	4.94%	4.96%	-5.34%	-0.33%	3.47%	4.75%	1.15%	1.98%

Correlation

The correlation between VTMSX and BFMSX is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.19
Correlation (5Y) Calculated over the trailing 5-year period	0.17
Correlation (10Y) Calculated over the trailing 10-year period	0.09
Correlation (All Time) Calculated using the full available price history since Mar 25, 1999	-0.06

The correlation between VTMSX and BFMSX shifts across timeframes, from -0.06 (all time) to 0.27 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VTMSX vs. BFMSX — Risk / Return Rank

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

VTMSX

VTMSX Risk / Return Rank: 65
VTMSX Sharpe Ratio Rank: 53
VTMSX Sortino Ratio Rank: 57
VTMSX Omega Ratio Rank: 46
VTMSX Calmar Ratio Rank: 88
VTMSX Martin Ratio Rank: 79

BFMSX

BFMSX Risk / Return Rank: 71
BFMSX Sharpe Ratio Rank: 56
BFMSX Sortino Ratio Rank: 82
BFMSX Omega Ratio Rank: 84
BFMSX Calmar Ratio Rank: 59
BFMSX Martin Ratio Rank: 72

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.

VTMSX vs. BFMSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) and BlackRock Low Duration Bond Portfolio (BFMSX). 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.

	VTMSX	BFMSX	Difference
Sharpe ratio: Return per unit of total volatility	1.98	1.90	+0.08
Sortino ratio: Return per unit of downside risk	2.87	3.41	-0.54
Omega ratio: Gain probability vs. loss probability	1.34	1.50	-0.16
Calmar ratio: Return relative to maximum drawdown	4.08	2.68	+1.40
Martin ratio: Return relative to average drawdown	13.66	12.10	+1.56

VTMSX vs. BFMSX - Sharpe Ratio Comparison

The current VTMSX Sharpe Ratio is 1.98, which is comparable to the BFMSX Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of VTMSX and BFMSX, 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

VTMSX vs. BFMSX - Drawdown Comparison

The maximum VTMSX drawdown since its inception was -57.84%, which is greater than BFMSX's maximum drawdown of -12.70%. Use the drawdown chart below to compare losses from any high point for VTMSX and BFMSX.

Drawdown Indicators

	VTMSX	BFMSX	Difference
Max Drawdown Largest peak-to-trough decline	-57.84%	-12.70%	-45.14%
Max Drawdown (1Y) Largest decline over 1 year	-8.59%	-1.52%	-7.07%
Max Drawdown (3Y) Largest decline over 3 years	-27.93%	-1.52%	-26.41%
Max Drawdown (5Y) Largest decline over 5 years	-27.93%	-7.96%	-19.97%
Max Drawdown (10Y) Largest decline over 10 years	-43.88%	-7.96%	-35.92%
Current Drawdown Current decline from peak	-0.37%	-0.33%	-0.04%
Average Drawdown Average peak-to-trough decline	-8.91%	-0.82%	-8.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.56%	0.34%	+2.22%

Volatility

VTMSX vs. BFMSX - Volatility Comparison

Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) has a higher volatility of 4.92% compared to BlackRock Low Duration Bond Portfolio (BFMSX) at 0.68%. This indicates that VTMSX's price experiences larger fluctuations and is considered to be riskier than BFMSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTMSX	BFMSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.92%	0.68%	+4.24%
Volatility (6M) Calculated over the trailing 6-month period	12.10%	1.69%	+10.41%
Volatility (1Y) Calculated over the trailing 1-year period	17.75%	2.15%	+15.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.46%	2.35%	+19.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.12%	2.12%	+21.00%

VTMSX vs. BFMSX - Expense Ratio Comparison

VTMSX has a 0.09% expense ratio, which is lower than BFMSX's 0.41% expense ratio.

Dividends

VTMSX vs. BFMSX - Dividend Comparison

VTMSX's dividend yield for the trailing twelve months is around 1.12%, less than BFMSX's 4.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BFMSX BlackRock Low Duration Bond Portfolio	4.68%	4.56%	4.14%	3.34%	2.67%	1.23%	2.04%	2.63%	2.51%	2.17%	1.76%	1.87%
VTMSX Vanguard Tax-Managed Small-Cap Fund Admiral Shares	1.12%	1.28%	1.44%	1.50%	1.51%	1.16%	1.09%	1.15%	1.26%	1.11%	1.01%	1.26%

Frequently Asked Questions

Can I hold both VTMSX and BFMSX in my portfolio?

VTMSX and BFMSX have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTMSX or BFMSX?

VTMSX has higher volatility (4.92%) compared to BFMSX (0.68%). In terms of maximum drawdown, VTMSX dropped -57.84% vs BFMSX's -12.70%.

Which has better risk-adjusted returns?

VTMSX currently has the higher Sharpe Ratio (1.98 vs 1.90), 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.