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VTMSX vs. SWSSX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTMSX vs. SWSSX

Last updated Jun 4, 2026

VTMSX (Vanguard Tax-Managed Small-Cap Fund Admiral Shares) and SWSSX (Schwab Small-Cap Index Fund-Select Shares) are both Small Cap Blend Equities funds. Over the past 10 years, VTMSX returned 10.79%/yr vs 11.20%/yr for SWSSX. With a 0.98 correlation, they move nearly in lockstep. VTMSX charges 0.09%/yr vs 0.04%/yr for SWSSX.

Performance

VTMSX vs. SWSSX - 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 Schwab Small-Cap Index Fund-Select Shares (SWSSX). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VTMSX achieves a 16.65% return, which is significantly lower than SWSSX's 18.71% return. Both investments have delivered pretty close results over the past 10 years, with VTMSX having a 10.79% annualized return and SWSSX not far ahead at 11.20%.

VTMSX

1D
0.92%
1M
2.71%
YTD
16.65%
6M
15.43%
1Y
32.94%
3Y*
14.82%
5Y*
5.98%
10Y*
10.79%

SWSSX

1D
0.92%
1M
5.00%
YTD
18.71%
6M
17.43%
1Y
41.24%
3Y*
18.69%
5Y*
6.65%
10Y*
11.20%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTMSX vs. SWSSX - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VTMSX
Vanguard Tax-Managed Small-Cap Fund Admiral Shares		16.65%5.93%8.61%15.95%-16.16%27.08%11.05%23.28%-8.62%13.05%
SWSSX
Schwab Small-Cap Index Fund-Select Shares		18.71%12.88%11.57%17.07%-20.43%14.77%20.12%25.63%-11.19%14.76%

Correlation

The correlation between VTMSX and SWSSX 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

0.96

Correlation (5Y)
Calculated over the trailing 5-year period

0.97

Correlation (10Y)
Calculated over the trailing 10-year period

0.97

Correlation (All Time)
Calculated using the full available price history since Mar 26, 1999

0.98

The correlation between VTMSX and SWSSX has been stable across timeframes, ranging from 0.94 to 0.98 - a consistent structural relationship.

VTMSX vs. SWSSX - Sectors Allocation Comparison

Sectors
VTMSX
SWSSX

Financial Services

16.7%
15.8%

Industrials

15.6%
17.7%

Technology

15.4%
17.0%

Consumer Cyclical

13.4%
8.4%

Healthcare

10.9%
16.5%

Real Estate

7.8%
6.1%

Energy

6.0%
6.1%

Basic Materials

5.3%
4.8%

Communication Services

3.5%
2.4%

Consumer Defensive

3.5%
2.4%

Utilities

1.9%
2.9%

Financial Services

VTMSX
16.7%
SWSSX
15.8%

Industrials

VTMSX
15.6%
SWSSX
17.7%

Technology

VTMSX
15.4%
SWSSX
17.0%

Consumer Cyclical

VTMSX
13.4%
SWSSX
8.4%

Healthcare

VTMSX
10.9%
SWSSX
16.5%

Real Estate

VTMSX
7.8%
SWSSX
6.1%

Energy

VTMSX
6.0%
SWSSX
6.1%

Basic Materials

VTMSX
5.3%
SWSSX
4.8%

Communication Services

VTMSX
3.5%
SWSSX
2.4%

Consumer Defensive

VTMSX
3.5%
SWSSX
2.4%

Utilities

VTMSX
1.9%
SWSSX
2.9%

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Vanguard Tax-Managed Small-Cap Fund Admiral Shares

Schwab Small-Cap Index Fund-Select Shares

Often compared with VTMSX:
VTMSX vs. VSMAXVTMSX vs. AVUVVTMSX vs. VTCLXVTMSX vs. VFIAXVTMSX vs. ^SP600VTMSX vs. FSMDXVTMSX vs. FNDA
Often compared with SWSSX:
SWSSX vs. SCHASWSSX vs. SWPPXSWSSX vs. SFSNXSWSSX vs. SWSCXSWSSX vs. VSMAXSWSSX vs. VSIAXSWSSX vs. VBR

Return for Risk

VTMSX vs. SWSSX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VTMSX
VTMSX Risk / Return Rank: 5959
Overall Rank
VTMSX Sharpe Ratio Rank: 4747
Sharpe Ratio Rank
VTMSX Sortino Ratio Rank: 4848
Sortino Ratio Rank
VTMSX Omega Ratio Rank: 4141
Omega Ratio Rank
VTMSX Calmar Ratio Rank: 8686
Calmar Ratio Rank
VTMSX Martin Ratio Rank: 7171
Martin Ratio Rank
SWSSX
SWSSX Risk / Return Rank: 6464
Overall Rank
SWSSX Sharpe Ratio Rank: 6060
Sharpe Ratio Rank
SWSSX Sortino Ratio Rank: 5555
Sortino Ratio Rank
SWSSX Omega Ratio Rank: 4747
Omega Ratio Rank
SWSSX Calmar Ratio Rank: 8484
Calmar Ratio Rank
SWSSX Martin Ratio Rank: 7474
Martin Ratio Rank
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. SWSSX - 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 Schwab Small-Cap Index Fund-Select Shares (SWSSX). 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.

VTMSXSWSSXDifference
Sharpe ratioReturn per unit of total volatility
2.01
2.28

-0.27

Sortino ratioReturn per unit of downside risk
2.89
3.13

-0.24

Omega ratioGain probability vs. loss probability

1.35

1.37

-0.03

Calmar ratioReturn relative to maximum drawdown

4.10

3.97

+0.13

Martin ratioReturn relative to average drawdown

13.62

14.11

-0.49

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTMSX vs. SWSSX - Sharpe Ratio Comparison

The current VTMSX Sharpe Ratio is 2.01, which is comparable to the SWSSX Sharpe Ratio of 2.28. The chart below compares the historical Sharpe Ratios of VTMSX and SWSSX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

VTMSXSWSSXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.01

2.28

-0.27

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.28

0.30

-0.02

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.47

0.47

0.00

Sharpe Ratio (All Time)

Calculated using the full available price history

0.46

0.36

+0.09

Drawdowns

VTMSX vs. SWSSX - Drawdown Comparison

The maximum VTMSX drawdown since its inception was -57.84%, roughly equal to the maximum SWSSX drawdown of -60.34%. Use the drawdown chart below to compare losses from any high point for VTMSX and SWSSX.

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Drawdown Indicators

VTMSXSWSSXDifference

Max Drawdown

Largest peak-to-trough decline

-57.84%

-60.34%

+2.50%

Max Drawdown (1Y)

Largest decline over 1 year

-8.59%

-11.00%

+2.41%

Max Drawdown (3Y)

Largest decline over 3 years

-27.93%

-27.50%

-0.43%

Max Drawdown (5Y)

Largest decline over 5 years

-27.93%

-31.93%

+4.00%

Max Drawdown (10Y)

Largest decline over 10 years

-43.88%

-41.81%

-2.07%

Current Drawdown

Current decline from peak

0.00%

-0.13%

+0.13%

Average Drawdown

Average peak-to-trough decline

-8.93%

-10.73%

+1.80%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.58%

3.09%

-0.51%

Volatility

VTMSX vs. SWSSX - Volatility Comparison

The current volatility for Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) is 4.51%, while Schwab Small-Cap Index Fund-Select Shares (SWSSX) has a volatility of 5.61%. This indicates that VTMSX experiences smaller price fluctuations and is considered to be less risky than SWSSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VTMSXSWSSXDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.51%

5.61%

-1.10%

Volatility (6M)

Calculated over the trailing 6-month period

11.69%

13.60%

-1.91%

Volatility (1Y)

Calculated over the trailing 1-year period

17.53%

19.15%

-1.62%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.46%

22.59%

-1.13%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.12%

24.09%

-0.97%

VTMSX vs. SWSSX - Expense Ratio Comparison

VTMSX has a 0.09% expense ratio, which is higher than SWSSX'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

VTMSX vs. SWSSX - Dividend Comparison

VTMSX's dividend yield for the trailing twelve months is around 1.15%, more than SWSSX's 1.08% yield.

PositionTTM20252024202320222021202020192018201720162015
SWSSX
Schwab Small-Cap Index Fund-Select Shares		1.08%1.29%1.66%1.49%1.32%8.88%2.55%6.12%10.45%5.22%4.10%6.92%
VTMSX
Vanguard Tax-Managed Small-Cap Fund Admiral Shares		1.15%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

With a correlation of 0.94, VTMSX and SWSSX 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.

SWSSX has higher volatility (5.61%) compared to VTMSX (4.51%). In terms of maximum drawdown, VTMSX dropped -57.84% vs SWSSX's -60.34%.

SWSSX currently has the higher Sharpe Ratio (2.28 vs 2.01), 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.

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