VTSIX vs. XSMO

Last updated Jun 4, 2026

VTSIX (Vanguard Tax-Managed Small-Cap Fund Institutional Shares) and XSMO (Invesco S&P SmallCap Momentum ETF) are both funds - VTSIX is a Small Cap Blend Equities fund managed by BlackRock, while XSMO is a Momentum fund tracking the S&P SmallCap 600 Momentum Index. Over the past 10 years, VTSIX returned 10.82%/yr vs 14.62%/yr for XSMO. Their correlation of 0.89 suggests significant overlap in exposure. VTSIX charges 0.06%/yr vs 0.36%/yr for XSMO.

Performance

VTSIX vs. XSMO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Tax-Managed Small-Cap Fund Institutional Shares (VTSIX) and Invesco S&P SmallCap Momentum ETF (XSMO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTSIX achieves a 16.66% return, which is significantly lower than XSMO's 21.96% return. Over the past 10 years, VTSIX has underperformed XSMO with an annualized return of 10.82%, while XSMO has yielded a comparatively higher 14.62% annualized return.

VTSIX

• 1D: 0.92%
• 1M: 2.71%
• YTD: 16.66%
• 6M: 15.44%
• 1Y: 32.97%
• 3Y*: 14.85%
• 5Y*: 6.01%
• 10Y*: 10.82%

XSMO

• 1D: -0.56%
• 1M: 1.29%
• YTD: 21.96%
• 6M: 20.33%
• 1Y: 32.93%
• 3Y*: 24.51%
• 5Y*: 11.21%
• 10Y*: 14.62%

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

VTSIX vs. XSMO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTSIX Vanguard Tax-Managed Small-Cap Fund Institutional Shares	16.66%	5.96%	8.64%	15.99%	-16.14%	27.12%	11.09%	23.30%	-8.59%	13.08%
XSMO Invesco S&P SmallCap Momentum ETF	21.96%	9.80%	17.45%	21.55%	-15.44%	19.24%	21.96%	28.65%	-3.44%	23.95%

Correlation

The correlation between VTSIX and XSMO is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Mar 4, 2005	0.89

The correlation between VTSIX and XSMO has been stable across timeframes, ranging from 0.89 to 0.94 - a consistent structural relationship.

VTSIX vs. XSMO - Sectors Allocation Comparison

Sectors	VTSIX	XSMO
Financial Services	16.7%	12.3%
Industrials	15.6%	19.5%
Technology	15.4%	20.9%
Consumer Cyclical	13.4%	9.0%
Healthcare	10.9%	13.9%
Real Estate	7.8%	5.0%
Energy	6.0%	3.1%
Basic Materials	5.3%	5.8%
Communication Services	3.5%	4.1%
Consumer Defensive	3.5%	2.4%
Utilities	1.9%	4.0%

Return for Risk

VTSIX vs. XSMO — Risk / Return Rank

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

VTSIX

VTSIX Risk / Return Rank: 59
VTSIX Sharpe Ratio Rank: 47
VTSIX Sortino Ratio Rank: 47
VTSIX Omega Ratio Rank: 42
VTSIX Calmar Ratio Rank: 86
VTSIX Martin Ratio Rank: 71

XSMO

XSMO Risk / Return Rank: 58
XSMO Sharpe Ratio Rank: 50
XSMO Sortino Ratio Rank: 52
XSMO Omega Ratio Rank: 47
XSMO Calmar Ratio Rank: 73
XSMO Martin Ratio Rank: 68

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.

VTSIX vs. XSMO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Managed Small-Cap Fund Institutional Shares (VTSIX) and Invesco S&P SmallCap Momentum ETF (XSMO). 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.

	VTSIX	XSMO	Difference
Sharpe ratio Return per unit of total volatility	2.01	1.77	+0.24
Sortino ratio Return per unit of downside risk	2.90	2.56	+0.34
Omega ratio Gain probability vs. loss probability	1.35	1.30	+0.04
Calmar ratio Return relative to maximum drawdown	4.11	3.72	+0.38
Martin ratio Return relative to average drawdown	13.63	12.71	+0.92
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTSIX vs. XSMO - Sharpe Ratio Comparison

The current VTSIX Sharpe Ratio is 2.01, which is comparable to the XSMO Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of VTSIX and XSMO, 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

	VTSIX	XSMO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.01	1.77	+0.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.50	-0.22
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.61	-0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.39	+0.06

Drawdowns

VTSIX vs. XSMO - Drawdown Comparison

The maximum VTSIX drawdown since its inception was -57.81%, roughly equal to the maximum XSMO drawdown of -58.06%. Use the drawdown chart below to compare losses from any high point for VTSIX and XSMO.

Drawdown Indicators

	VTSIX	XSMO	Difference
Max Drawdown Largest peak-to-trough decline	-57.81%	-58.06%	+0.25%
Max Drawdown (1Y) Largest decline over 1 year	-8.59%	-8.89%	+0.30%
Max Drawdown (3Y) Largest decline over 3 years	-27.92%	-24.76%	-3.16%
Max Drawdown (5Y) Largest decline over 5 years	-27.92%	-29.62%	+1.70%
Max Drawdown (10Y) Largest decline over 10 years	-43.86%	-39.39%	-4.47%
Current Drawdown Current decline from peak	-0.00%	-1.72%	+1.72%
Average Drawdown Average peak-to-trough decline	-8.93%	-11.13%	+2.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.58%	2.60%	-0.02%

Volatility

VTSIX vs. XSMO - Volatility Comparison

The current volatility for Vanguard Tax-Managed Small-Cap Fund Institutional Shares (VTSIX) is 4.51%, while Invesco S&P SmallCap Momentum ETF (XSMO) has a volatility of 6.34%. This indicates that VTSIX experiences smaller price fluctuations and is considered to be less risky than XSMO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTSIX	XSMO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.51%	6.34%	-1.83%
Volatility (6M) Calculated over the trailing 6-month period	11.69%	14.11%	-2.42%
Volatility (1Y) Calculated over the trailing 1-year period	17.54%	18.73%	-1.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.46%	22.67%	-1.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.11%	24.12%	-1.01%

VTSIX vs. XSMO - Expense Ratio Comparison

VTSIX has a 0.06% expense ratio, which is lower than XSMO's 0.36% expense ratio.

Dividends

VTSIX vs. XSMO - Dividend Comparison

VTSIX's dividend yield for the trailing twelve months is around 1.17%, more than XSMO's 0.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTSIX Vanguard Tax-Managed Small-Cap Fund Institutional Shares	1.17%	1.31%	1.47%	1.52%	1.54%	1.19%	1.11%	1.17%	1.29%	1.13%	1.03%	1.30%
XSMO Invesco S&P SmallCap Momentum ETF	0.53%	0.75%	0.63%	0.96%	1.19%	0.30%	0.82%	0.69%	0.66%	0.27%	0.30%	0.35%

Frequently Asked Questions

Can I hold both VTSIX and XSMO in my portfolio?

With a correlation of 0.91, VTSIX and XSMO 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.

Which is riskier, VTSIX or XSMO?

XSMO has higher volatility (6.34%) compared to VTSIX (4.51%). In terms of maximum drawdown, VTSIX dropped -57.81% vs XSMO's -58.06%.

Which has better risk-adjusted returns?

VTSIX currently has the higher Sharpe Ratio (2.01 vs 1.77), 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.