VTWV vs. VSS

Last updated Jun 25, 2026

VTWV (Vanguard Russell 2000 Value ETF) and VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) are both exchange-traded funds - VTWV is a Small Cap Value Equities fund tracking the Russell 2000 Value Index, while VSS is a Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US Index. Both are passively managed. Over the past 10 years, VTWV returned 10.92%/yr vs 8.45%/yr for VSS. A 0.69 correlation means they provide meaningful diversification when combined. VTWV charges 0.10%/yr vs 0.07%/yr for VSS.

Performance

VTWV vs. VSS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 2000 Value ETF (VTWV) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTWV achieves a 21.33% return, which is significantly higher than VSS's 7.69% return. Over the past 10 years, VTWV has outperformed VSS with an annualized return of 10.92%, while VSS has yielded a comparatively lower 8.45% annualized return.

VTWV

• 1D: 0.38%
• 1M: 3.80%
• YTD: 21.33%
• 6M: 18.75%
• 1Y: 42.06%
• 3Y*: 19.77%
• 5Y*: 7.49%
• 10Y*: 10.92%

VSS

• 1D: -0.10%
• 1M: -3.13%
• YTD: 7.69%
• 6M: 7.31%
• 1Y: 20.91%
• 3Y*: 15.99%
• 5Y*: 5.43%
• 10Y*: 8.45%

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

VTWV vs. VSS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTWV Vanguard Russell 2000 Value ETF	21.33%	12.72%	7.83%	14.67%	-14.46%	27.90%	4.88%	22.44%	-13.34%	8.06%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	7.69%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%

Correlation

The correlation between VTWV and VSS is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Sep 22, 2010	0.69

The correlation between VTWV and VSS has been stable across timeframes, ranging from 0.69 to 0.73 - a consistent structural relationship.

VTWV vs. VSS - Sectors Allocation Comparison

Sectors	VTWV	VSS
Financial Services	24.0%	10.1%
Industrials	12.2%	18.7%
Technology	11.6%	14.5%
Real Estate	10.2%	7.1%
Healthcare	10.1%	6.0%
Consumer Cyclical	8.9%	9.1%
Energy	7.8%	4.4%
Basic Materials	5.4%	12.2%
Utilities	5.0%	2.5%
Communication Services	2.7%	2.3%
Consumer Defensive	2.1%	3.5%

Return for Risk

VTWV vs. VSS — Risk / Return Rank

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

VTWV

VTWV Risk / Return Rank: 82
VTWV Sharpe Ratio Rank: 80
VTWV Sortino Ratio Rank: 81
VTWV Omega Ratio Rank: 74
VTWV Calmar Ratio Rank: 90
VTWV Martin Ratio Rank: 87

VSS

VSS Risk / Return Rank: 41
VSS Sharpe Ratio Rank: 41
VSS Sortino Ratio Rank: 39
VSS Omega Ratio Rank: 42
VSS Calmar Ratio Rank: 39
VSS Martin Ratio Rank: 44

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.

VTWV vs. VSS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 Value ETF (VTWV) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). 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.

	VTWV	VSS	Difference
Sharpe ratio: Return per unit of total volatility	2.30	1.33	+0.97
Sortino ratio: Return per unit of downside risk	3.23	1.86	+1.36
Omega ratio: Gain probability vs. loss probability	1.39	1.25	+0.14
Calmar ratio: Return relative to maximum drawdown	4.89	1.81	+3.08
Martin ratio: Return relative to average drawdown	16.72	6.68	+10.04

VTWV vs. VSS - Sharpe Ratio Comparison

The current VTWV Sharpe Ratio is 2.30, which is higher than the VSS Sharpe Ratio of 1.33. The chart below compares the historical Sharpe Ratios of VTWV and VSS, 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

VTWV vs. VSS - Drawdown Comparison

The maximum VTWV drawdown since its inception was -45.73%, which is greater than VSS's maximum drawdown of -43.51%. Use the drawdown chart below to compare losses from any high point for VTWV and VSS.

Drawdown Indicators

	VTWV	VSS	Difference
Max Drawdown Largest peak-to-trough decline	-45.73%	-43.51%	-2.22%
Max Drawdown (1Y) Largest decline over 1 year	-8.64%	-11.62%	+2.98%
Max Drawdown (3Y) Largest decline over 3 years	-26.72%	-15.73%	-10.99%
Max Drawdown (5Y) Largest decline over 5 years	-26.72%	-33.93%	+7.21%
Max Drawdown (10Y) Largest decline over 10 years	-45.73%	-43.51%	-2.22%
Current Drawdown Current decline from peak	0.00%	-5.12%	+5.12%
Average Drawdown Average peak-to-trough decline	-7.79%	-9.62%	+1.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.52%	3.14%	-0.62%

Volatility

VTWV vs. VSS - Volatility Comparison

The current volatility for Vanguard Russell 2000 Value ETF (VTWV) is 5.32%, while Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a volatility of 6.52%. This indicates that VTWV experiences smaller price fluctuations and is considered to be less risky than VSS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTWV	VSS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.32%	6.52%	-1.20%
Volatility (6M) Calculated over the trailing 6-month period	12.61%	13.86%	-1.25%
Volatility (1Y) Calculated over the trailing 1-year period	18.38%	15.79%	+2.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.71%	16.63%	+5.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.54%	17.16%	+6.38%

VTWV vs. VSS - Expense Ratio Comparison

VTWV has a 0.10% expense ratio, which is higher than VSS's 0.07% 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

VTWV vs. VSS - Dividend Comparison

VTWV's dividend yield for the trailing twelve months is around 1.63%, less than VSS's 3.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.24%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%
VTWV Vanguard Russell 2000 Value ETF	1.63%	1.79%	1.78%	2.02%	2.07%	1.60%	1.49%	1.82%	2.04%	1.63%	1.57%	2.03%

Frequently Asked Questions

Can I hold both VTWV and VSS in my portfolio?

VTWV and VSS have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTWV or VSS?

VSS has higher volatility (6.52%) compared to VTWV (5.32%). In terms of maximum drawdown, VTWV dropped -45.73% vs VSS's -43.51%.

Which ETF is better, VTWV or VSS?

On 10-year performance, VTWV leads with 10.92% vs 8.45% for VSS. On fees, VSS is cheaper at 0.07% per year. On volatility, VTWV has been the lower-risk option at 5.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTWV or VSS?

Over the 10-year period, VTWV has performed better with a 10.92% return vs 8.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTWV or VSS?

VSS is cheaper with a 0.07% expense ratio, compared with 0.10% for VTWV.

Which ETF pays a higher dividend yield, VTWV or VSS?

VSS has the higher dividend yield at 3.24%, compared with 1.63% for VTWV.

What is the main difference between VTWV and VSS?

VTWV is categorized as Small Cap Value Equities, while VSS is Foreign Small & Mid Cap Equities. VTWV tracks Russell 2000 Value Index, while VSS tracks FTSE Global Small Cap ex US Index. Their fees differ too: 0.10% for VTWV and 0.07% for VSS.

Which has better risk-adjusted returns?

VTWV currently has the higher Sharpe Ratio (2.30 vs 1.33), 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.