VTMSX vs. VTCLX

Last updated Aug 3, 2026

VTMSX (Vanguard Tax-Managed Small-Cap Fund Admiral Shares) and VTCLX (Vanguard Tax-Managed Capital Appreciation Fund Admiral Shares) are both mutual funds - VTMSX is a Small Cap Blend Equities fund tracking the S&P SmallCap 600 Index, while VTCLX is a Large Cap Blend Equities fund tracking the Russell 1000 Index. Both are passively managed. Over the past 10 years, VTMSX returned 10.75%/yr vs 14.86%/yr for VTCLX. Their correlation of 0.87 means they have usually moved in the same direction. Both charge a 0.05% expense ratio.

Performance

VTMSX vs. VTCLX - 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 Tax-Managed Capital Appreciation Fund Admiral Shares (VTCLX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTMSX achieves a 21.93% return, which is significantly higher than VTCLX's 9.27% return. Over the past 10 years, VTMSX has underperformed VTCLX with an annualized return of 10.75%, while VTCLX has yielded a comparatively higher 14.86% annualized return.

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%

VTCLX

• 1D: 1.63%
• 1M: -0.80%
• 6M: 7.72%
• YTD: 9.27%
• 1Y: 20.40%
• 3Y*: 18.54%
• 5Y*: 11.93%
• 10Y*: 14.86%
• ALL TIME*: 10.08%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VTCLX Vanguard Tax-Managed Capital Appreciation 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. VTCLX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
VTCLX Vanguard Tax-Managed Capital Appreciation Fund Admiral Shares	9.27%	17.44%	23.76%	26.62%	-19.07%	26.87%	21.08%	31.47%	-4.98%	22.40%

Correlation

The correlation between VTMSX and VTCLX is 0.75, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.75
Correlation (3Y) Balances recent behavior with more history.	0.77
Correlation (5Y) Shows whether the relationship held over a longer period.	0.81
Correlation (10Y) Provides a long-term view across more market conditions.	0.80
Correlation (All Time) Calculated using the full available price history since Nov 12, 2001	0.87

The correlation between VTMSX and VTCLX shifts across timeframes, from 0.75 (1 year) to 0.87 (all time), reflecting how their relationship changes across market environments.

VTMSX vs. VTCLX - Sectors Allocation Comparison

Sectors	VTMSX	VTCLX
Financial Services	17.1%	11.7%
Industrials	15.6%	9.0%
Technology	15.5%	36.9%
Consumer Cyclical	13.4%	9.4%
Healthcare	12.2%	9.0%
Real Estate	7.6%	2.0%
Energy	4.9%	3.2%
Basic Materials	4.8%	2.1%
Consumer Defensive	4.0%	4.4%
Communication Services	3.2%	9.3%
Utilities	1.7%	2.6%

Return for Risk

VTMSX vs. VTCLX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VTMSX

VTMSX Risk / Return Rank: 84
VTMSX Sharpe Ratio Rank: 80
VTMSX Sortino Ratio Rank: 81
VTMSX Omega Ratio Rank: 76
VTMSX Calmar Ratio Rank: 93
VTMSX Martin Ratio Rank: 92

VTCLX

VTCLX Risk / Return Rank: 62
VTCLX Sharpe Ratio Rank: 59
VTCLX Sortino Ratio Rank: 56
VTCLX Omega Ratio Rank: 55
VTCLX Calmar Ratio Rank: 64
VTCLX Martin Ratio Rank: 77

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. VTCLX - 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 Tax-Managed Capital Appreciation Fund Admiral Shares (VTCLX). 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	VTCLX	Difference
Sharpe ratio: Return per unit of total volatility	1.87	1.40	+0.47
Sortino ratio: Return per unit of downside risk	2.77	1.97	+0.80
Omega ratio: Gain probability vs. loss probability	1.32	1.25	+0.07
Calmar ratio: Return relative to maximum drawdown	3.79	2.07	+1.72
Martin ratio: Return relative to average drawdown	12.88	8.96	+3.92

VTMSX vs. VTCLX - Sharpe Ratio Comparison

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

The maximum VTMSX drawdown since its inception was -57.84%, roughly equal to the maximum VTCLX drawdown of -55.18%. Use the drawdown chart below to compare losses from any high point for VTMSX and VTCLX.

Drawdown Indicators

	VTMSX	VTCLX	Difference
Max Drawdown Largest peak-to-trough decline	-57.84%	-55.18%	-2.66%
Max Drawdown (1Y) Largest decline over 1 year	-8.59%	-8.79%	+0.20%
Max Drawdown (3Y) Largest decline over 3 years	-27.93%	-19.01%	-8.92%
Max Drawdown (5Y) Largest decline over 5 years	-27.93%	-24.98%	-2.95%
Max Drawdown (10Y) Largest decline over 10 years	-43.88%	-34.56%	-9.32%
Current Drawdown Current decline from peak	-1.82%	-1.83%	+0.01%
Average Drawdown Average peak-to-trough decline	-8.88%	-7.53%	-1.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.53%	2.02%	+0.51%

Volatility

VTMSX vs. VTCLX - Volatility Comparison

Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) and Vanguard Tax-Managed Capital Appreciation Fund Admiral Shares (VTCLX) have volatilities of 3.47% and 3.41%, 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.

Volatility by Period

	VTMSX	VTCLX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.47%	3.41%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	11.67%	10.16%	+1.51%
Volatility (1Y) Calculated over the trailing 1-year period	17.40%	12.97%	+4.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.32%	17.33%	+3.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.07%	18.27%	+4.80%

VTMSX vs. VTCLX - Expense Ratio Comparison

Both VTMSX and VTCLX 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. VTCLX - Dividend Comparison

VTMSX's dividend yield for the trailing twelve months is around 1.19%, more than VTCLX's 0.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTCLX Vanguard Tax-Managed Capital Appreciation Fund Admiral Shares	0.91%	0.93%	1.04%	1.24%	1.47%	1.04%	1.32%	1.52%	1.83%	1.57%	1.76%	1.69%
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

Can I hold both VTMSX and VTCLX in my portfolio?

VTMSX and VTCLX have a correlation of 0.75, 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 VTCLX?

VTMSX has higher volatility (3.47%) compared to VTCLX (3.41%). In terms of maximum drawdown, VTMSX dropped -57.84% vs VTCLX's -55.18%.

Which has better risk-adjusted returns?

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.