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VTMSX vs. VSCIX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTMSX vs. VSCIX

Last updated Jun 25, 2026

VTMSX (Vanguard Tax-Managed Small-Cap Fund Admiral Shares) and VSCIX (Vanguard Small-Cap Index Fund Institutional Shares) are both Small Cap Blend Equities funds. Over the past 10 years, VTMSX returned 11.34%/yr vs 11.70%/yr for VSCIX. With a 0.97 correlation, they move nearly in lockstep. VTMSX charges 0.09%/yr vs 0.04%/yr for VSCIX.

Performance

VTMSX vs. VSCIX - 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 Small-Cap Index Fund Institutional Shares (VSCIX). 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 19.68% return, which is significantly higher than VSCIX's 14.81% return. Both investments have delivered pretty close results over the past 10 years, with VTMSX having a 11.34% annualized return and VSCIX not far ahead at 11.70%.

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%

VSCIX

1D
-0.79%
1M
2.07%
YTD
14.81%
6M
12.43%
1Y
26.63%
3Y*
17.23%
5Y*
7.01%
10Y*
11.70%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTMSX vs. VSCIX - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
VSCIX
Vanguard Small-Cap Index Fund Institutional Shares		14.81%8.85%12.96%19.52%-17.60%17.74%19.07%27.40%-9.33%16.25%

Correlation

The correlation between VTMSX and VSCIX is 0.95, 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

0.95

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

0.96

Correlation (All Time)
Calculated using the full available price history since Mar 25, 1999

0.97

The correlation between VTMSX and VSCIX has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

VTMSX vs. VSCIX - Sectors Allocation Comparison

Sectors
VTMSX
VSCIX

Technology

17.1%
18.8%

Financial Services

16.4%
11.9%

Industrials

15.2%
20.7%

Consumer Cyclical

13.1%
10.3%

Healthcare

10.9%
11.0%

Real Estate

7.7%
7.1%

Energy

5.5%
4.7%

Basic Materials

5.1%
4.7%

Communication Services

3.6%
2.7%

Consumer Defensive

3.4%
3.4%

Utilities

1.9%
3.1%

Technology

VTMSX
17.1%
VSCIX
18.8%

Financial Services

VTMSX
16.4%
VSCIX
11.9%

Industrials

VTMSX
15.2%
VSCIX
20.7%

Consumer Cyclical

VTMSX
13.1%
VSCIX
10.3%

Healthcare

VTMSX
10.9%
VSCIX
11.0%

Real Estate

VTMSX
7.7%
VSCIX
7.1%

Energy

VTMSX
5.5%
VSCIX
4.7%

Basic Materials

VTMSX
5.1%
VSCIX
4.7%

Communication Services

VTMSX
3.6%
VSCIX
2.7%

Consumer Defensive

VTMSX
3.4%
VSCIX
3.4%

Utilities

VTMSX
1.9%
VSCIX
3.1%

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Vanguard Tax-Managed Small-Cap Fund Admiral Shares

Vanguard Small-Cap Index Fund Institutional Shares

Often compared with VTMSX:
VTMSX vs. VSMAXVTMSX vs. AVUVVTMSX vs. VTCLXVTMSX vs. VFIAXVTMSX vs. ^SP600VTMSX vs. FSMDXVTMSX vs. FNDA
Often compared with VSCIX:
VSCIX vs. VMCIXVSCIX vs. VINIXVSCIX vs. VBVSCIX vs. VOOVSCIX vs. VIEIXVSCIX vs. IWMVSCIX vs. AVFIX

Return for Risk

VTMSX vs. VSCIX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VTMSX
VTMSX Risk / Return Rank: 6565
Overall Rank
VTMSX Sharpe Ratio Rank: 5353
Sharpe Ratio Rank
VTMSX Sortino Ratio Rank: 5757
Sortino Ratio Rank
VTMSX Omega Ratio Rank: 4646
Omega Ratio Rank
VTMSX Calmar Ratio Rank: 8888
Calmar Ratio Rank
VTMSX Martin Ratio Rank: 7979
Martin Ratio Rank
VSCIX
VSCIX Risk / Return Rank: 5050
Overall Rank
VSCIX Sharpe Ratio Rank: 4040
Sharpe Ratio Rank
VSCIX Sortino Ratio Rank: 4040
Sortino Ratio Rank
VSCIX Omega Ratio Rank: 3535
Omega Ratio Rank
VSCIX Calmar Ratio Rank: 7272
Calmar Ratio Rank
VSCIX Martin Ratio Rank: 6363
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. VSCIX - 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 Small-Cap Index Fund Institutional Shares (VSCIX). 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.

VTMSXVSCIXDifference
Sharpe ratioReturn per unit of total volatility
1.98
1.69

+0.29

Sortino ratioReturn per unit of downside risk
2.87
2.43

+0.44

Omega ratioGain probability vs. loss probability

1.34

1.29

+0.05

Calmar ratioReturn relative to maximum drawdown

4.08

3.14

+0.94

Martin ratioReturn relative to average drawdown

13.66

11.55

+2.11

VTMSX vs. VSCIX - Sharpe Ratio Comparison

The current VTMSX Sharpe Ratio is 1.98, which is comparable to the VSCIX Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of VTMSX and VSCIX, 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. VSCIX - Drawdown Comparison

The maximum VTMSX drawdown since its inception was -57.84%, roughly equal to the maximum VSCIX drawdown of -59.66%. Use the drawdown chart below to compare losses from any high point for VTMSX and VSCIX.

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Drawdown Indicators

VTMSXVSCIXDifference

Max Drawdown

Largest peak-to-trough decline

-57.84%

-59.66%

+1.82%

Max Drawdown (1Y)

Largest decline over 1 year

-8.59%

-8.97%

+0.38%

Max Drawdown (3Y)

Largest decline over 3 years

-27.93%

-25.25%

-2.68%

Max Drawdown (5Y)

Largest decline over 5 years

-27.93%

-28.13%

+0.20%

Max Drawdown (10Y)

Largest decline over 10 years

-43.88%

-41.81%

-2.07%

Current Drawdown

Current decline from peak

-0.37%

-1.11%

+0.74%

Average Drawdown

Average peak-to-trough decline

-8.91%

-10.11%

+1.20%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.56%

2.44%

+0.12%

Volatility

VTMSX vs. VSCIX - Volatility Comparison

Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) and Vanguard Small-Cap Index Fund Institutional Shares (VSCIX) have volatilities of 4.92% and 5.05%, 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.

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Volatility by Period

VTMSXVSCIXDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.92%

5.05%

-0.13%

Volatility (6M)

Calculated over the trailing 6-month period

12.10%

12.25%

-0.15%

Volatility (1Y)

Calculated over the trailing 1-year period

17.75%

16.67%

+1.08%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.46%

20.77%

+0.69%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.12%

21.57%

+1.55%

VTMSX vs. VSCIX - Expense Ratio Comparison

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

VTMSX's dividend yield for the trailing twelve months is around 1.12%, less than VSCIX's 1.19% yield.

PositionTTM20252024202320222021202020192018201720162015
VSCIX
Vanguard Small-Cap Index Fund Institutional Shares		1.19%1.34%1.31%1.55%1.55%1.25%1.15%1.40%1.68%1.36%1.50%1.49%
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

With a correlation of 0.95, VTMSX and VSCIX 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.

VSCIX has higher volatility (5.05%) compared to VTMSX (4.92%). In terms of maximum drawdown, VTMSX dropped -57.84% vs VSCIX's -59.66%.

VTMSX currently has the higher Sharpe Ratio (1.98 vs 1.69), 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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