VTPSX vs. NEWFX

Last updated Jun 5, 2026

VTPSX (Vanguard Total International Stock Index Fund Institutional Plus Shares) and NEWFX (American Funds New World Fund) are both mutual funds - VTPSX is a Foreign Large Cap Equities fund managed by Vanguard, while NEWFX is a Emerging Markets Diversified fund managed by American Funds. Over the past 10 years, VTPSX returned 9.80%/yr vs 10.92%/yr for NEWFX. Their correlation of 0.92 suggests significant overlap in exposure. VTPSX charges 0.07%/yr vs 0.96%/yr for NEWFX.

Performance

VTPSX vs. NEWFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total International Stock Index Fund Institutional Plus Shares (VTPSX) and American Funds New World Fund (NEWFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTPSX achieves a 14.49% return, which is significantly lower than NEWFX's 16.56% return. Over the past 10 years, VTPSX has underperformed NEWFX with an annualized return of 9.80%, while NEWFX has yielded a comparatively higher 10.92% annualized return.

VTPSX

• 1D: -0.81%
• 1M: 3.56%
• YTD: 14.49%
• 6M: 16.99%
• 1Y: 31.54%
• 3Y*: 19.52%
• 5Y*: 8.49%
• 10Y*: 9.80%

NEWFX

• 1D: -0.73%
• 1M: 5.66%
• YTD: 16.56%
• 6M: 17.99%
• 1Y: 34.29%
• 3Y*: 19.18%
• 5Y*: 6.62%
• 10Y*: 10.92%

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

VTPSX vs. NEWFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTPSX Vanguard Total International Stock Index Fund Institutional Plus Shares	14.49%	32.25%	5.39%	15.31%	-15.99%	8.64%	11.29%	21.57%	-14.40%	27.56%
NEWFX American Funds New World Fund	16.56%	28.16%	6.45%	15.75%	-22.08%	4.69%	24.79%	27.51%	-12.32%	32.56%

Correlation

The correlation between VTPSX and NEWFX is 0.87, 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	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since Nov 30, 2010	0.92

The correlation between VTPSX and NEWFX has been stable across timeframes, ranging from 0.87 to 0.92 - a consistent structural relationship.

Return for Risk

VTPSX vs. NEWFX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VTPSX

VTPSX Risk / Return Rank: 57
VTPSX Sharpe Ratio Rank: 59
VTPSX Sortino Ratio Rank: 54
VTPSX Omega Ratio Rank: 58
VTPSX Calmar Ratio Rank: 56
VTPSX Martin Ratio Rank: 56

NEWFX

NEWFX Risk / Return Rank: 61
NEWFX Sharpe Ratio Rank: 67
NEWFX Sortino Ratio Rank: 64
NEWFX Omega Ratio Rank: 66
NEWFX Calmar Ratio Rank: 50
NEWFX Martin Ratio Rank: 55

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.

VTPSX vs. NEWFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total International Stock Index Fund Institutional Plus Shares (VTPSX) and American Funds New World Fund (NEWFX). 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.

	VTPSX	NEWFX	Difference
Sharpe ratio: Return per unit of total volatility	2.29	2.40	-0.12
Sortino ratio: Return per unit of downside risk	3.11	3.36	-0.25
Omega ratio: Gain probability vs. loss probability	1.42	1.45	-0.03
Calmar ratio: Return relative to maximum drawdown	2.88	2.72	+0.16
Martin ratio: Return relative to average drawdown	11.37	11.15	+0.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTPSX vs. NEWFX - Sharpe Ratio Comparison

The current VTPSX Sharpe Ratio is 2.29, which is comparable to the NEWFX Sharpe Ratio of 2.40. The chart below compares the historical Sharpe Ratios of VTPSX and NEWFX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VTPSX	NEWFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.29	2.40	-0.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.57	0.43	+0.14
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.62	0.68	-0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	0.53	-0.09

Drawdowns

VTPSX vs. NEWFX - Drawdown Comparison

The maximum VTPSX drawdown since its inception was -35.77%, smaller than the maximum NEWFX drawdown of -56.71%. Use the drawdown chart below to compare losses from any high point for VTPSX and NEWFX.

Drawdown Indicators

	VTPSX	NEWFX	Difference
Max Drawdown Largest peak-to-trough decline	-35.77%	-56.71%	+20.94%
Max Drawdown (1Y) Largest decline over 1 year	-11.29%	-13.03%	+1.74%
Max Drawdown (3Y) Largest decline over 3 years	-13.14%	-15.18%	+2.04%
Max Drawdown (5Y) Largest decline over 5 years	-29.54%	-33.68%	+4.14%
Max Drawdown (10Y) Largest decline over 10 years	-35.77%	-33.68%	-2.09%
Current Drawdown Current decline from peak	-0.81%	-0.73%	-0.08%
Average Drawdown Average peak-to-trough decline	-8.04%	-11.74%	+3.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.85%	3.17%	-0.32%

Volatility

VTPSX vs. NEWFX - Volatility Comparison

The current volatility for Vanguard Total International Stock Index Fund Institutional Plus Shares (VTPSX) is 4.87%, while American Funds New World Fund (NEWFX) has a volatility of 5.56%. This indicates that VTPSX experiences smaller price fluctuations and is considered to be less risky than NEWFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTPSX	NEWFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.87%	5.56%	-0.69%
Volatility (6M) Calculated over the trailing 6-month period	11.92%	12.54%	-0.62%
Volatility (1Y) Calculated over the trailing 1-year period	14.22%	14.74%	-0.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.04%	15.42%	-0.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.93%	16.14%	-0.21%

VTPSX vs. NEWFX - Expense Ratio Comparison

VTPSX has a 0.07% expense ratio, which is lower than NEWFX's 0.96% expense ratio.

Dividends

VTPSX vs. NEWFX - Dividend Comparison

VTPSX's dividend yield for the trailing twelve months is around 2.65%, less than NEWFX's 4.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NEWFX American Funds New World Fund	4.89%	5.71%	3.66%	2.46%	0.89%	6.89%	0.10%	3.65%	2.26%	1.90%	0.92%	0.60%
VTPSX Vanguard Total International Stock Index Fund Institutional Plus Shares	2.65%	3.18%	3.37%	3.25%	3.09%	3.09%	2.13%	3.08%	3.20%	2.77%	2.97%	2.89%

Frequently Asked Questions

Can I hold both VTPSX and NEWFX in my portfolio?

VTPSX and NEWFX have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTPSX or NEWFX?

NEWFX has higher volatility (5.56%) compared to VTPSX (4.87%). In terms of maximum drawdown, VTPSX dropped -35.77% vs NEWFX's -56.71%.

Which has better risk-adjusted returns?

NEWFX currently has the higher Sharpe Ratio (2.40 vs 2.29), 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.