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VTMSX vs. VFIAX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTMSX vs. VFIAX

Last updated Jun 23, 2026

VTMSX (Vanguard Tax-Managed Small-Cap Fund Admiral Shares) and VFIAX (Vanguard 500 Index Fund Admiral Shares) are both mutual funds - VTMSX is a Small Cap Blend Equities fund managed by BlackRock, while VFIAX is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, VTMSX returned 11.10%/yr vs 15.54%/yr for VFIAX. Their correlation of 0.85 suggests significant overlap in exposure. VTMSX charges 0.09%/yr vs 0.04%/yr for VFIAX.

Performance

VTMSX vs. VFIAX - 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 Vanguard 500 Index Fund Admiral Shares (VFIAX). 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 20.05% return, which is significantly higher than VFIAX's 10.17% return. Over the past 10 years, VTMSX has underperformed VFIAX with an annualized return of 11.10%, while VFIAX has yielded a comparatively higher 15.54% annualized return.

VTMSX

1D
1.83%
1M
4.61%
YTD
20.05%
6M
16.98%
1Y
36.96%
3Y*
15.15%
5Y*
7.38%
10Y*
11.10%

VFIAX

1D
1.09%
1M
0.46%
YTD
10.17%
6M
9.67%
1Y
27.15%
3Y*
20.95%
5Y*
14.06%
10Y*
15.54%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTMSX vs. VFIAX - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VTMSX
Vanguard Tax-Managed Small-Cap Fund Admiral Shares		20.05%5.93%8.61%15.95%-16.16%27.08%11.05%23.28%-8.62%13.05%
VFIAX
Vanguard 500 Index Fund Admiral Shares		10.17%17.83%24.97%26.24%-18.16%28.65%18.32%31.46%-4.45%21.78%

Correlation

The correlation between VTMSX and VFIAX is 0.74, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.74

Correlation (3Y)
Calculated over the trailing 3-year period

0.74

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

0.79

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

0.78

Correlation (All Time)
Calculated using the full available price history since Nov 13, 2000

0.85

The correlation between VTMSX and VFIAX shifts across timeframes, from 0.74 (1 year) to 0.85 (all time), reflecting how their relationship changes across market environments.

VTMSX vs. VFIAX - Sectors Allocation Comparison

Sectors
VTMSX
VFIAX

Technology

17.1%
39.1%

Financial Services

16.4%
10.9%

Industrials

15.2%
7.6%

Consumer Cyclical

13.1%
9.8%

Healthcare

10.9%
8.3%

Real Estate

7.7%
1.8%

Energy

5.5%
3.2%

Basic Materials

5.1%
1.7%

Communication Services

3.6%
10.5%

Consumer Defensive

3.4%
4.5%

Utilities

1.9%
2.5%

Technology

VTMSX
17.1%
VFIAX
39.1%

Financial Services

VTMSX
16.4%
VFIAX
10.9%

Industrials

VTMSX
15.2%
VFIAX
7.6%

Consumer Cyclical

VTMSX
13.1%
VFIAX
9.8%

Healthcare

VTMSX
10.9%
VFIAX
8.3%

Real Estate

VTMSX
7.7%
VFIAX
1.8%

Energy

VTMSX
5.5%
VFIAX
3.2%

Basic Materials

VTMSX
5.1%
VFIAX
1.7%

Communication Services

VTMSX
3.6%
VFIAX
10.5%

Consumer Defensive

VTMSX
3.4%
VFIAX
4.5%

Utilities

VTMSX
1.9%
VFIAX
2.5%

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Vanguard Tax-Managed Small-Cap Fund Admiral Shares

Vanguard 500 Index Fund Admiral Shares

Often compared with VTMSX:
VTMSX vs. VSMAXVTMSX vs. AVUVVTMSX vs. VTCLXVTMSX vs. ^SP600VTMSX vs. FSMDXVTMSX vs. FNDAVTMSX vs. TISBX
Often compared with VFIAX:
VFIAX vs. VOOVFIAX vs. VTIVFIAX vs. SPYVFIAX vs. VITAXVFIAX vs. VVIAXVFIAX vs. VFIFXVFIAX vs. VBIAX

Return for Risk

VTMSX vs. VFIAX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VTMSX
VTMSX Risk / Return Rank: 6969
Overall Rank
VTMSX Sharpe Ratio Rank: 5959
Sharpe Ratio Rank
VTMSX Sortino Ratio Rank: 6262
Sortino Ratio Rank
VTMSX Omega Ratio Rank: 5050
Omega Ratio Rank
VTMSX Calmar Ratio Rank: 9090
Calmar Ratio Rank
VTMSX Martin Ratio Rank: 8383
Martin Ratio Rank
VFIAX
VFIAX Risk / Return Rank: 6666
Overall Rank
VFIAX Sharpe Ratio Rank: 6464
Sharpe Ratio Rank
VFIAX Sortino Ratio Rank: 5858
Sortino Ratio Rank
VFIAX Omega Ratio Rank: 6161
Omega Ratio Rank
VFIAX Calmar Ratio Rank: 6868
Calmar Ratio Rank
VFIAX Martin Ratio Rank: 7979
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. VFIAX - 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 Vanguard 500 Index Fund Admiral Shares (VFIAX). 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.

VTMSXVFIAXDifference
Sharpe ratioReturn per unit of total volatility
2.08
2.17

-0.08

Sortino ratioReturn per unit of downside risk
3.00
2.93

+0.07

Omega ratioGain probability vs. loss probability

1.36

1.39

-0.04

Calmar ratioReturn relative to maximum drawdown

4.31

3.03

+1.27

Martin ratioReturn relative to average drawdown

14.42

13.72

+0.70

VTMSX vs. VFIAX - Sharpe Ratio Comparison

The current VTMSX Sharpe Ratio is 2.08, which is comparable to the VFIAX Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of VTMSX and VFIAX, 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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Drawdowns

VTMSX vs. VFIAX - Drawdown Comparison

The maximum VTMSX drawdown since its inception was -57.84%, roughly equal to the maximum VFIAX drawdown of -55.20%. Use the drawdown chart below to compare losses from any high point for VTMSX and VFIAX.

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Drawdown Indicators

VTMSXVFIAXDifference

Max Drawdown

Largest peak-to-trough decline

-57.84%

-55.20%

-2.64%

Max Drawdown (1Y)

Largest decline over 1 year

-8.59%

-8.90%

+0.31%

Max Drawdown (3Y)

Largest decline over 3 years

-27.93%

-18.75%

-9.18%

Max Drawdown (5Y)

Largest decline over 5 years

-27.93%

-24.53%

-3.40%

Max Drawdown (10Y)

Largest decline over 10 years

-43.88%

-33.83%

-10.05%

Current Drawdown

Current decline from peak

-0.04%

-1.36%

+1.32%

Average Drawdown

Average peak-to-trough decline

-8.91%

-9.38%

+0.47%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.56%

1.96%

+0.60%

Volatility

VTMSX vs. VFIAX - Volatility Comparison

Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) has a higher volatility of 5.19% compared to Vanguard 500 Index Fund Admiral Shares (VFIAX) at 4.77%. This indicates that VTMSX's price experiences larger fluctuations and is considered to be riskier than VFIAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VTMSXVFIAXDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.19%

4.77%

+0.42%

Volatility (6M)

Calculated over the trailing 6-month period

12.10%

9.91%

+2.19%

Volatility (1Y)

Calculated over the trailing 1-year period

17.75%

12.47%

+5.28%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.47%

17.00%

+4.47%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.14%

18.11%

+5.03%

VTMSX vs. VFIAX - Expense Ratio Comparison

VTMSX has a 0.09% expense ratio, which is higher than VFIAX'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. VFIAX - Dividend Comparison

VTMSX's dividend yield for the trailing twelve months is around 1.12%, more than VFIAX's 1.03% yield.

PositionTTM20252024202320222021202020192018201720162015
VFIAX
Vanguard 500 Index Fund Admiral Shares		1.03%1.12%1.24%1.45%1.68%1.24%1.53%1.87%2.05%1.78%2.02%2.10%
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

VTMSX and VFIAX have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VTMSX has higher volatility (5.19%) compared to VFIAX (4.77%). In terms of maximum drawdown, VTMSX dropped -57.84% vs VFIAX's -55.20%.

VFIAX currently has the higher Sharpe Ratio (2.17 vs 2.08), 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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