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VTMSX vs. VSMAX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTMSX vs. VSMAX

Last updated Aug 3, 2026
Documentation

VTMSX (Vanguard Tax-Managed Small-Cap Fund Admiral Shares) and VSMAX (Vanguard Small-Cap Index Fund Admiral Shares) are both Small Cap Blend Equities funds from Vanguard - VTMSX tracks the S&P SmallCap 600 Index while VSMAX tracks the CRSP US Small Cap Index. Both are passively managed. Over the past 10 years, VTMSX returned 10.75%/yr vs 10.94%/yr for VSMAX. Their 0.98 correlation means they have historically moved very closely together. Both charge a 0.05% expense ratio.

Performance

VTMSX vs. VSMAX - 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 Admiral Shares (VSMAX). 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 21.93% return, which is significantly higher than VSMAX's 15.44% return. Both investments have delivered pretty close results over the past 10 years, with VTMSX having a 10.75% annualized return and VSMAX not far ahead at 10.94%.

VTMSX

1D
0.86%
1M
-0.56%
6M
15.49%
YTD
21.93%
1Y
36.13%
3Y*
13.30%
5Y*
7.52%
10Y*
10.75%
ALL TIME*
10.61%

VSMAX

1D
0.91%
1M
-1.57%
6M
10.35%
YTD
15.44%
1Y
26.12%
3Y*
13.94%
5Y*
7.48%
10Y*
10.94%
ALL TIME*
8.92%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

VSMAX

Vanguard Small-Cap Index Fund Admiral Shares
$0.00$0.00$0.00

VTMSX

Vanguard Tax-Managed Small-Cap Fund Admiral Shares
$0.00$0.00$0.00

VTMSX vs. VSMAX - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VTMSX
Vanguard Tax-Managed Small-Cap Fund Admiral Shares		21.93%5.93%8.61%15.95%-16.16%27.08%11.05%23.28%-8.62%13.05%
VSMAX
Vanguard Small-Cap Index Fund Admiral Shares		15.44%8.83%14.23%18.17%-17.61%17.74%19.06%27.36%-9.33%16.24%

Correlation

The correlation between VTMSX and VSMAX is 0.94, meaning they have usually moved in the same direction, including during past declines.

Correlation
Correlation (1Y)
Focuses on recent behavior, but can change the most.

0.94

Correlation (3Y)
Balances recent behavior with more history.

0.96

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.97

Correlation (10Y)
Provides a long-term view across more market conditions.

0.96

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

0.98

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

VTMSX vs. VSMAX - Sectors Allocation Comparison

Sectors
VTMSX
VSMAX

Financial Services

17.1%
12.4%

Industrials

15.6%
19.9%

Technology

15.5%
17.9%

Consumer Cyclical

13.4%
11.6%

Healthcare

12.2%
12.5%

Real Estate

7.6%
7.9%

Energy

4.9%
3.9%

Basic Materials

4.8%
4.4%

Consumer Defensive

4.0%
3.3%

Communication Services

3.2%
2.9%

Utilities

1.7%
3.3%

Financial Services

VTMSX
17.1%
VSMAX
12.4%

Industrials

VTMSX
15.6%
VSMAX
19.9%

Technology

VTMSX
15.5%
VSMAX
17.9%

Consumer Cyclical

VTMSX
13.4%
VSMAX
11.6%

Healthcare

VTMSX
12.2%
VSMAX
12.5%

Real Estate

VTMSX
7.6%
VSMAX
7.9%

Energy

VTMSX
4.9%
VSMAX
3.9%

Basic Materials

VTMSX
4.8%
VSMAX
4.4%

Consumer Defensive

VTMSX
4.0%
VSMAX
3.3%

Communication Services

VTMSX
3.2%
VSMAX
2.9%

Utilities

VTMSX
1.7%
VSMAX
3.3%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Tax-Managed Small-Cap Fund Admiral Shares

Vanguard Small-Cap Index Fund Admiral Shares

Often compared with VTMSX:
VTMSX vs. VTCLXVTMSX vs. AVUVVTMSX vs. VFIAXVTMSX vs. ^SP600VTMSX vs. FSMDXVTMSX vs. FNDAVTMSX vs. TISBX
Often compared with VSMAX:
VSMAX vs. VIMAXVSMAX vs. FSSNXVSMAX vs. VSGAXVSMAX vs. VBVSMAX vs. VOOVSMAX vs. VBRVSMAX vs. IWM

Return for Risk

VTMSX vs. VSMAX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
VTMSX
VTMSX Risk / Return Rank: 8484
Overall Rank
VTMSX Sharpe Ratio Rank: 8080
Sharpe Ratio Rank
VTMSX Sortino Ratio Rank: 8181
Sortino Ratio Rank
VTMSX Omega Ratio Rank: 7676
Omega Ratio Rank
VTMSX Calmar Ratio Rank: 9393
Calmar Ratio Rank
VTMSX Martin Ratio Rank: 9292
Martin Ratio Rank
VSMAX
VSMAX Risk / Return Rank: 6666
Overall Rank
VSMAX Sharpe Ratio Rank: 5858
Sharpe Ratio Rank
VSMAX Sortino Ratio Rank: 6060
Sortino Ratio Rank
VSMAX Omega Ratio Rank: 5353
Omega Ratio Rank
VSMAX Calmar Ratio Rank: 7979
Calmar Ratio Rank
VSMAX Martin Ratio Rank: 8080
Martin Ratio Rank
The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VTMSX vs. VSMAX - 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 Admiral Shares (VSMAX). 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.

VTMSXVSMAXDifference
Sharpe ratioReturn per unit of total volatility
1.87
1.40

+0.47

Sortino ratioReturn per unit of downside risk
2.77
2.05

+0.72

Omega ratioGain probability vs. loss probability

1.32

1.25

+0.08

Calmar ratioReturn relative to maximum drawdown

3.79

2.56

+1.23

Martin ratioReturn relative to average drawdown

12.88

9.40

+3.49

VTMSX vs. VSMAX - Sharpe Ratio Comparison

The current VTMSX Sharpe Ratio is 1.87, which is higher than the VSMAX Sharpe Ratio of 1.40. The chart below compares the historical Sharpe Ratios of VTMSX and VSMAX, 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. VSMAX - Drawdown Comparison

The maximum VTMSX drawdown since its inception was -57.84%, roughly equal to the maximum VSMAX drawdown of -59.68%. Use the drawdown chart below to compare losses from any high point for VTMSX and VSMAX.

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Drawdown Indicators

VTMSXVSMAXDifference

Max Drawdown

Largest peak-to-trough decline

-57.84%

-59.68%

+1.84%

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%

-28.14%

+0.21%

Max Drawdown (10Y)

Largest decline over 10 years

-43.88%

-41.82%

-2.06%

Current Drawdown

Current decline from peak

-1.82%

-2.36%

+0.54%

Average Drawdown

Average peak-to-trough decline

-8.88%

-9.64%

+0.76%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.53%

2.45%

+0.08%

Volatility

VTMSX vs. VSMAX - Volatility Comparison

Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) and Vanguard Small-Cap Index Fund Admiral Shares (VSMAX) have volatilities of 3.47% and 3.32%, 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

VTMSXVSMAXDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.47%

3.32%

+0.15%

Volatility (6M)

Calculated over the trailing 6-month period

11.67%

11.98%

-0.31%

Volatility (1Y)

Calculated over the trailing 1-year period

17.40%

16.47%

+0.93%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.32%

20.67%

+0.65%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.07%

21.51%

+1.56%

VTMSX vs. VSMAX - Expense Ratio Comparison

Both VTMSX and VSMAX have an expense ratio of 0.05%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VTMSX vs. VSMAX - Dividend Comparison

VTMSX's dividend yield for the trailing twelve months is around 1.19%, less than VSMAX's 1.21% yield.

PositionTTM20252024202320222021202020192018201720162015
VSMAX
Vanguard Small-Cap Index Fund Admiral Shares		1.21%1.33%1.30%1.56%1.54%1.24%1.14%1.39%1.67%1.35%1.49%1.48%
VTMSX
Vanguard Tax-Managed Small-Cap Fund Admiral Shares		1.19%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 VSMAX 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.

VTMSX has higher volatility (3.47%) compared to VSMAX (3.32%). In terms of maximum drawdown, VTMSX dropped -57.84% vs VSMAX's -59.68%.

VTMSX currently has the higher Sharpe Ratio (1.87 vs 1.40), 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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