VXF vs. MSEGX

Last updated Jun 16, 2026

VXF (Vanguard Extended Market ETF) and MSEGX (Morgan Stanley Institutional Growth Portfolio) are both funds - VXF is a Mid Cap Blend Equities fund tracking the S&P Completion Index, while MSEGX is a Large Cap Growth Equities fund actively managed by Morgan Stanley. VXF is passively managed, while MSEGX is actively managed. Over the past 10 years, VXF returned 12.46%/yr vs 16.26%/yr for MSEGX. Their correlation of 0.81 suggests significant overlap in exposure. VXF charges 0.05%/yr vs 0.87%/yr for MSEGX.

Performance

VXF vs. MSEGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Extended Market ETF (VXF) and Morgan Stanley Institutional Growth Portfolio (MSEGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VXF achieves a 15.76% return, which is significantly higher than MSEGX's -8.75% return. Over the past 10 years, VXF has underperformed MSEGX with an annualized return of 12.46%, while MSEGX has yielded a comparatively higher 16.26% annualized return.

VXF

• 1D: 1.22%
• 1M: 7.44%
• YTD: 15.76%
• 6M: 14.58%
• 1Y: 31.73%
• 3Y*: 19.15%
• 5Y*: 6.61%
• 10Y*: 12.46%

MSEGX

• 1D: 0.28%
• 1M: -0.94%
• YTD: -8.75%
• 6M: -8.31%
• 1Y: 1.53%
• 3Y*: 23.36%
• 5Y*: -1.14%
• 10Y*: 16.26%

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

VXF vs. MSEGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VXF Vanguard Extended Market ETF	15.76%	11.40%	16.89%	25.51%	-26.52%	12.31%	32.45%	27.96%	-9.34%	18.06%
MSEGX Morgan Stanley Institutional Growth Portfolio	-8.75%	24.43%	46.29%	49.87%	-60.27%	-0.31%	115.11%	38.93%	5.01%	43.53%

Correlation

The correlation between VXF and MSEGX is 0.71, 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	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Jan 4, 2002	0.81

The correlation between VXF and MSEGX shifts across timeframes, from 0.71 (1 year) to 0.82 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VXF vs. MSEGX — Risk / Return Rank

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

VXF

VXF Risk / Return Rank: 61
VXF Sharpe Ratio Rank: 59
VXF Sortino Ratio Rank: 58
VXF Omega Ratio Rank: 55
VXF Calmar Ratio Rank: 68
VXF Martin Ratio Rank: 67

MSEGX

MSEGX Risk / Return Rank: 4
MSEGX Sharpe Ratio Rank: 3
MSEGX Sortino Ratio Rank: 4
MSEGX Omega Ratio Rank: 4
MSEGX Calmar Ratio Rank: 3
MSEGX Martin Ratio Rank: 3

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.

VXF vs. MSEGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Extended Market ETF (VXF) and Morgan Stanley Institutional Growth Portfolio (MSEGX). 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.

	VXF	MSEGX	Difference
Sharpe ratio: Return per unit of total volatility	1.79	0.03	+1.77
Sortino ratio: Return per unit of downside risk	2.48	0.24	+2.24
Omega ratio: Gain probability vs. loss probability	1.31	1.03	+0.28
Calmar ratio: Return relative to maximum drawdown	3.12	0.03	+3.09
Martin ratio: Return relative to average drawdown	10.99	0.06	+10.94

VXF vs. MSEGX - Sharpe Ratio Comparison

The current VXF Sharpe Ratio is 1.79, which is higher than the MSEGX Sharpe Ratio of 0.03. The chart below compares the historical Sharpe Ratios of VXF and MSEGX, 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

VXF vs. MSEGX - Drawdown Comparison

The maximum VXF drawdown since its inception was -58.03%, smaller than the maximum MSEGX drawdown of -69.57%. Use the drawdown chart below to compare losses from any high point for VXF and MSEGX.

Drawdown Indicators

	VXF	MSEGX	Difference
Max Drawdown Largest peak-to-trough decline	-58.03%	-69.57%	+11.54%
Max Drawdown (1Y) Largest decline over 1 year	-10.21%	-27.83%	+17.62%
Max Drawdown (3Y) Largest decline over 3 years	-26.92%	-32.54%	+5.62%
Max Drawdown (5Y) Largest decline over 5 years	-36.39%	-69.57%	+33.18%
Max Drawdown (10Y) Largest decline over 10 years	-41.72%	-69.57%	+27.85%
Current Drawdown Current decline from peak	0.00%	-21.13%	+21.13%
Average Drawdown Average peak-to-trough decline	-9.54%	-19.50%	+9.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.89%	13.26%	-10.37%

Volatility

VXF vs. MSEGX - Volatility Comparison

The current volatility for Vanguard Extended Market ETF (VXF) is 6.59%, while Morgan Stanley Institutional Growth Portfolio (MSEGX) has a volatility of 9.48%. This indicates that VXF experiences smaller price fluctuations and is considered to be less risky than MSEGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VXF	MSEGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.59%	9.48%	-2.89%
Volatility (6M) Calculated over the trailing 6-month period	13.30%	22.14%	-8.84%
Volatility (1Y) Calculated over the trailing 1-year period	17.81%	28.75%	-10.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.43%	39.79%	-17.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.34%	33.85%	-11.51%

VXF vs. MSEGX - Expense Ratio Comparison

VXF has a 0.05% expense ratio, which is lower than MSEGX's 0.87% expense ratio.

Dividends

VXF vs. MSEGX - Dividend Comparison

VXF's dividend yield for the trailing twelve months is around 1.00%, while MSEGX has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSEGX Morgan Stanley Institutional Growth Portfolio	0.00%	0.00%	0.42%	0.00%	18.70%	26.52%	10.03%	22.75%	5.67%	22.18%	13.17%	7.76%
VXF Vanguard Extended Market ETF	1.00%	1.14%	1.09%	1.27%	1.15%	1.13%	1.07%	1.30%	1.66%	1.25%	1.43%	1.35%

Frequently Asked Questions

Can I hold both VXF and MSEGX in my portfolio?

VXF and MSEGX have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VXF or MSEGX?

MSEGX has higher volatility (9.48%) compared to VXF (6.59%). In terms of maximum drawdown, VXF dropped -58.03% vs MSEGX's -69.57%.

Which has better risk-adjusted returns?

VXF currently has the higher Sharpe Ratio (1.79 vs 0.03), 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.