# How Vanguard Extended Market ETF (VXF) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/vxf
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VXF alone. It places VXF (Vanguard Extended Market ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VXF stands in the market, and of the alternatives worth a closer look.

Period covered: VXF's full trading record, from January 2002 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **What you're buying:** A correlation of 0.98 with VB (Vanguard Morningstar Small-Cap ETF) over 5 years: effectively the same bet as the larger fund.
- **Right now:** VXF has trailed the market, rising 1.6% over the past 6 months against 9.1% for the S&P 500 and 11.2% for the Nasdaq 100. Its similar funds split over the past 6 months: VTI (Vanguard Morningstar Total Stock Market ETF) rose 8.3%, while IWM (iShares Russell 2000 ETF) fell 0.1%.
- **Fund or market?:** VXF fell 2.4% over the past 3 months, 3.0 points ahead of the small-cap stock ETF IWM (iShares Russell 2000 ETF), which fell 5.4%. The S&P 500 rose 3.9%. Its similar funds did not move as one over the past 3 months: VTI (Vanguard Morningstar Total Stock Market ETF) rose 3.2%, while IWM fell 5.4%.
- **Long term:** Over the past decade, VXF returned 11.4% a year against 15.5% a year for the S&P 500 (194% in total against 321%).
- **In a crash:** Across six sell-offs, VXF has typically fallen 1.3 times as far as the S&P 500. In the 2022 bear market, VXF fell harder than most of its similar funds, including VTI (Vanguard Morningstar Total Stock Market ETF), VO and VB.
- **Diversification:** Against the S&P 500, VXF has a correlation of 0.88 over 5 years, more closely than 80% of ETFs with at least $100 million in assets. Next to an index fund it is more of the same, not a cushion.
- **Better options**
  - **Popular alternatives:** VOO (Vanguard S&P 500 ETF), VTI (Vanguard Morningstar Total Stock Market ETF) and IUSG (iShares Core S&P U.S. Growth ETF) earned more than VXF with less volatility over the past 5 years. VOO returned 12.8% a year at 16.9% volatility, against 4.9% a year at 22.4%.
  - **Nearby categories and themes:** DIA (State Street SPDR Dow Jones Industrial Average ETF Trust, US large-cap equity) and MGV (Vanguard Morningstar Mega Cap Value ETF, US large-cap value) earned more than VXF with less volatility over the past 5 years. DIA returned 9.9% a year at 14.8% volatility, against 4.9% a year at 22.4%.
  - **Versus the S&P 500:** Simply owning the S&P 500 would have done better over the past 5 years: 12.7% a year at 17.1% volatility, against 4.9% at 22.4% for VXF.

## How much would $10,000 in VXF have grown?

This chart tracks a hypothetical $10,000 investment in VXF over the past 24 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VXF over the same span and VXF's popular alternatives, among those that traded for the entire period.

- $10,000 invested in VXF at the end of September 2002 would have grown to $143,520 by September 2026, about the same as the $144,215 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of VXF, and QQQ finished highest, at $423,930.

## VXF at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- VXF's deepest decline since it began trading in 2002 was 57.5%, from October 2007 to March 2009. It took 21 months from the low to climb back to its old high.
- Over 23 full calendar years, VXF's best was 2003, when it returned 45.1%, and its worst was 2008, when it lost 38.7%. It lost money in five of those years.
- VXF is 7.9% below its all-time high.

- Type: ETF, Broad Market (Asset Management)
- Trading since: January 4, 2002
- Assets: $91B
- Expense ratio: 0.05%
- Volatility (5 years): 22.4%; Sharpe ratio: 0.33
- Worst decline ever: −57.5%, from October 9, 2007 to March 9, 2009; back at its high by December 20, 2010

| Period | VXF total return |
| --- | --- |
| 1 month | −2.8% |
| 3 months | −2.4% |
| 6 months | +1.6% |
| year to date | +9.6% |
| 1 year | +9.9% |
| 3 years | +75.1% |
| 5 years | +27.2% |
| 10 years | +194% |

## VXF against the whole market

Where VXF ranks among every stock and fund, and what across the market has done better.

### How does VXF rank among all ETFs?

This section ranks VXF on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- VXF is among the more volatile ETFs: its price swings rank in the bottom 18% of the 1,560 ETFs with at least $100 million in assets, where the top is the calmest.

| Measure | VXF | Rank |
| --- | --- | --- |
| 1-year return | +9.9% | 1,271 of 2,485 (top 52%) |
| 3-year return | +75.1% | 677 of 1,949 (top 35%) |
| 5-year return | +27.2% | 1,030 of 1,560 (top 67%) |
| 10-year return | +194% | 312 of 958 (top 33%) |
| Volatility, 5 years | 22.4% | 1,276 of 1,560 (top 82%) |
| Sharpe ratio, 5 years | 0.33 | 1,192 of 1,560 (top 77%) |
| Worst decline, past 10 years | −41.7% | 597 of 951 (top 63%) |

### What has beaten VXF on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 52 stocks and 492 ETFs worth at least $500 million sit in the green region: each earned more than VXF over the past 5 years with smaller price swings. That is 15% of the 3,633 screened.
- Among those with at least half VXF's swings, DXJ has the best return for its risk: 26.6% a year at 19.1% volatility, 15% less than VXF's 22.4%, and a Sharpe ratio (return above cash per unit of volatility) of 1.34 against 0.33 for VXF.
- Among VXF's popular alternatives, IUSV, VOO and SPTM are in the region. IUSV earned 11.2% a year against 4.9% a year for VXF, at 14.3% volatility, 36% less than VXF's 22.4%.

### Is there a better investment than VXF?

The table below lists investments that beat VXF over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among VXF's popular alternatives, VOO, VTI and IUSG earned more than VXF with less volatility over the past 5 years. VOO returned 12.8% a year at 16.9% volatility, against 4.9% a year at 22.4%.
- Looking beyond its popular alternatives, DIA (US large-cap equity) and MGV (US large-cap value) earned more than VXF with less volatility over the past 5 years. DIA returned 9.9% a year at 14.8% volatility, against 4.9% a year at 22.4%.
- Simply owning the S&P 500 would have done better over the past 5 years: 12.7% a year at 17.1% volatility, against 4.9% at 22.4% for VXF.

The 15 strongest of 544 investments that beat VXF over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with VXF | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| VXF: Vanguard Extended Market ETF (this page) |  | +4.9% | 22.4% | 0.33 | −41.7% | +194% |  |  |
| [BRK-B](https://easycompare.io/research/brk-b): Berkshire Hathaway Inc. | Insurance | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.42 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [JNJ](https://easycompare.io/research/jnj): Johnson & Johnson | Pharmaceuticals | +12.7% | 17.9% | 0.76 | −27.4% | +196% | 0.19 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [LIN](https://easycompare.io/research/lin): Linde plc | Chemicals | +11.5% | 20.9% | 0.63 | −32.6% | +394% | 0.51 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | US Dividend Equity | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.85 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [SCHD](https://easycompare.io/research/schd): Schwab U.S. Dividend Equity ETF | US Dividend Equity | +9.7% | 14.3% | 0.72 | −33.4% | +252% | 0.69 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VT](https://easycompare.io/research/vt): Vanguard Total World Stock ETF | Global Equity | +10.3% | 16.2% | 0.69 | −34.2% | +223% | 0.89 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [RSG](https://easycompare.io/research/rsg): Republic Services, Inc. | Environmental Services | +13.9% | 18.5% | 0.80 | −34.0% | +446% | 0.31 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [QUAL](https://easycompare.io/research/qual): iShares MSCI USA Quality Factor ETF | US Quality Equity | +11.4% | 17.3% | 0.71 | −34.1% | +293% | 0.86 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [XLV](https://easycompare.io/research/xlv): State Street Health Care Select Sector SPDR ETF | Health Care Equity | +8.4% | 15.3% | 0.60 | −28.4% | +202% | 0.50 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [IVV](https://easycompare.io/research/ivv): iShares Core S&P 500 ETF | US Large-Cap Equity | +12.8% | 17.0% | 0.80 | −33.9% | +324% | 0.88 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| SPHQ: Invesco S&P 500 Quality ETF | US Quality Equity | +12.0% | 16.7% | 0.76 | −31.6% | +300% | 0.84 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| IOO: iShares Global 100 ETF | Global Equity | +15.7% | 17.2% | 0.94 | −31.4% | +361% | 0.76 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| MGV: Vanguard Morningstar Mega Cap Value ETF | US Large-Cap Value | +12.6% | 13.4% | 0.95 | −35.4% | +244% | 0.80 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| IWX: iShares Russell Top 200 Value ETF | Broad Market | +12.7% | 13.8% | 0.94 | −35.8% | +221% | 0.81 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| RWL: Invesco S&P 500 Revenue ETF | US Large-Cap Equity | +13.7% | 14.4% | 0.97 | −36.1% | +287% | 0.87 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |

## VXF against its popular alternatives

The investments people most often weigh against VXF, compared period by period and year by year.

### How do VXF's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- 16 of the 17 popular alternatives, led by IUSG, SPTM and VONE, were both more rewarding and calmer than VXF over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, VXF returned 4.9% a year, less than the S&P 500's 12.7%, with higher volatility (22.4% against 17.1%).

### Has VXF consistently beaten its popular alternatives?

This section compares VXF with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Nine of the 22 popular alternatives, led by IUSG, VOO and VONE, outperformed VXF in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- IUSG, VOO and VONE outperformed VXF in every long-term period and in all but one short-term period, the most consistent record in the group.
- IUSV, VOO and SPTM earned more for the risk they took than VXF (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of VXF | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| VXF: Vanguard Extended Market ETF (this page) | +9.9% | +75.1% | +27.2% | +194% |  |  | 0.33 |
| IUSG: iShares Core S&P U.S. Growth ETF | +15.9% | +107% | +83.7% | +405% | 5/5 short-term, 3/3 long-term | all-weather | 0.68 |
| [VOO](https://easycompare.io/research/voo): Vanguard S&P 500 ETF | +15.8% | +89.7% | +82.3% | +324% | 5/5 short-term, 3/3 long-term | all-weather | 0.80 |
| VONE: Vanguard Russell 1000 ETF | +15.2% | +88.5% | +75.9% | +312% | 5/5 short-term, 3/3 long-term | all-weather | 0.75 |
| SPTM: State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF | +15.7% | +87.2% | +78.6% | +310% | 5/5 short-term, 3/3 long-term | all-weather | 0.77 |
| [VTI](https://easycompare.io/research/vti): Vanguard Morningstar Total Stock Market ETF | +15.2% | +87.9% | +72.6% | +302% | 5/5 short-term, 3/3 long-term | all-weather | 0.71 |
| [ITOT](https://easycompare.io/research/itot): iShares Core S&P Total U.S. Stock Market ETF | +15.2% | +88.0% | +72.7% | +301% | 5/5 short-term, 3/3 long-term | all-weather | 0.72 |
| VTHR: Vanguard Russell 3000 ETF | +15.2% | +87.6% | +73.1% | +300% | 5/5 short-term, 3/3 long-term | all-weather | 0.72 |
| [SCHB](https://easycompare.io/research/schb): Schwab U.S. Broad Market ETF | +15.2% | +88.0% | +72.9% | +286% | 5/5 short-term, 3/3 long-term | all-weather | 0.72 |
| IUSV: iShares Core S&P U.S. Value ETF | +15.6% | +66.5% | +69.7% | +213% | 5/5 short-term, 2/3 long-term | consistent | 0.81 |
| [VO](https://easycompare.io/research/vo): Vanguard Morningstar Mid-Cap ETF | +12.4% | +68.9% | +39.1% | +198% | 5/5 short-term, 1/3 long-term |  | 0.47 |
| [IWR](https://easycompare.io/research/iwr): iShares Russell Mid-Cap ETF | +15.1% | +71.2% | +41.7% | +198% | 5/5 short-term, 1/3 long-term |  | 0.48 |
| SCHM: Schwab U.S. Mid-Cap ETF | +17.6% | +67.4% | +38.6% | +182% | 5/5 short-term, 1/3 long-term |  | 0.43 |
| [VB](https://easycompare.io/research/vb): Vanguard Morningstar Small-Cap ETF | +13.7% | +66.8% | +35.2% | +179% | 4/5 short-term, 1/3 long-term |  | 0.40 |
| AVUV: Avantis U.S. Small Cap Value ETF | +24.4% | +70.2% | +64.9% | — | 4/5 short-term, 1/3 long-term |  | 0.56 |
| SPMD: State Street SPDR Portfolio S&P 400 Mid Cap ETF | +13.5% | +59.5% | +41.6% | +181% | 3/5 short-term, 1/3 long-term |  | 0.46 |
| [IJR](https://easycompare.io/research/ijr): iShares Core S&P Small-Cap ETF | +16.7% | +60.8% | +31.5% | +164% | 3/5 short-term, 1/3 long-term |  | 0.37 |
| SPSM: State Street SPDR Portfolio S&P 600 Small Cap ETF | +16.8% | +61.1% | +32.2% | +163% | 3/5 short-term, 1/3 long-term |  | 0.37 |
| [VXUS](https://easycompare.io/research/vxus): Vanguard Total International Stock ETF | +14.6% | +77.2% | +48.6% | +140% | 3/5 short-term, 1/3 long-term |  | 0.57 |
| [IJH](https://easycompare.io/research/ijh): iShares Core S&P Mid-Cap ETF | +13.5% | +59.4% | +41.4% | +178% | 2/5 short-term, 1/3 long-term |  | 0.45 |
| SCHA: Schwab U.S. Small-Cap ETF | +16.5% | +73.1% | +33.9% | +165% | 2/5 short-term, 1/3 long-term |  | 0.38 |
| VTWO: Vanguard Russell 2000 ETF | +12.5% | +72.1% | +30.1% | +161% | 2/5 short-term, 1/3 long-term |  | 0.35 |
| [IWM](https://easycompare.io/research/iwm): iShares Russell 2000 ETF | +12.3% | +71.3% | +29.0% | +158% | 2/5 short-term, 1/3 long-term |  | 0.34 |

### How did VXF do year by year?

This table shows each investment's total return in every full calendar year since 2003, along with where VXF ranked among its popular alternatives each year.

- Ranked against its popular alternatives each year, VXF finished in the top quarter in seven of 23 years and in the bottom quarter in three. In 2025, it ranked 12 of 18.
- VXF finished ahead of the S&P 500 in ten of its 23 full calendar years, and behind it in each of the last two.
- Among its popular alternatives, VONE came out ahead of VXF most often, in 11 of the 15 years both traded.

| Year | VXF | SPY |
| --- | --- | --- |
| 2025 | +11.4% | +17.7% |
| 2024 | +16.9% | +24.9% |
| 2023 | +25.5% | +26.2% |
| 2022 | −26.5% | −18.2% |
| 2021 | +12.3% | +28.7% |
| 2020 | +32.5% | +18.3% |
| 2019 | +28.0% | +31.2% |
| 2018 | −9.3% | −4.6% |
| 2017 | +18.0% | +21.7% |
| 2016 | +16.2% | +12.0% |

## Risk and diversification

How VXF has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were VXF's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all five of VXF's worst declines, the S&P 500 held up better over the same dates.
- The slowest recovery came after VXF fell 36.4% from November 2021 to June 2022; it did not regain that peak until November 2024, two years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −57.5% | October 9, 2007 | March 9, 2009 | December 20, 2010 | −55.2% | 2008 financial crisis |
| −41.7% | February 20, 2020 | March 18, 2020 | August 26, 2020 | −28.8% | Covid crash |
| −36.4% | November 8, 2021 | June 16, 2022 | November 6, 2024 | −21.3% | 2022 bear market |
| −31.6% | April 16, 2002 | October 9, 2002 | August 20, 2003 | −30.4% | dot-com bust |
| −27.6% | April 29, 2011 | October 3, 2011 | March 26, 2012 | −18.6% | 2011 euro debt crisis |

### How did VXF do in stock market crashes?

This section measures how far VXF, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- VXF fell further than the S&P 500 in eight of the nine crashes it has traded through. The clearest case was the 2015 China and oil sell-off, when VXF fell 22.3% and the S&P 500 fell 12.8%.
- Among its popular alternatives, SPTM held up best, falling less than VXF in eight of the nine crashes they both traded through.

| Crash | Dates | VXF fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −57.5% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −2.9% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −26.3% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −22.3% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −5.6% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −23.9% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −41.7% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −30.5% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −7.0% | −3.4% |

### How closely does VXF move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Nine of the 16 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than VXF's 0.81, led by IUSG, VONE and SPTM.
- SPTM took just 101% of the S&P 500's losses, against 123% for VXF, while still keeping 99% of its gains.
- Over the past 10 years, VXF captured 100% of the S&P 500's gains in rising months and 123% of its losses in falling months, with a beta of 1.19. Its share of the market's losses was larger than its share of the gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| VXF: Vanguard Extended Market ETF (this page) | 100% | 123% | 1.19 |
| IUSG: iShares Core S&P U.S. Growth ETF | 109% | 103% | 1.08 |
| VONE: Vanguard Russell 1000 ETF | 100% | 102% | 1.02 |
| SPTM: State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF | 99.0% | 101% | 1.01 |
| [VTI](https://easycompare.io/research/vti): Vanguard Morningstar Total Stock Market ETF | 100% | 103% | 1.02 |
| [SCHB](https://easycompare.io/research/schb): Schwab U.S. Broad Market ETF | 99.0% | 104% | 1.03 |
| IUSV: iShares Core S&P U.S. Value ETF | 89.0% | 101% | 0.93 |
| [VO](https://easycompare.io/research/vo): Vanguard Morningstar Mid-Cap ETF | 91.0% | 109% | 1.05 |
| [IWR](https://easycompare.io/research/iwr): iShares Russell Mid-Cap ETF | 93.0% | 111% | 1.06 |
| SCHM: Schwab U.S. Mid-Cap ETF | 94.0% | 116% | 1.11 |
| [VB](https://easycompare.io/research/vb): Vanguard Morningstar Small-Cap ETF | 96.0% | 120% | 1.13 |
| SPMD: State Street SPDR Portfolio S&P 400 Mid Cap ETF | 93.0% | 116% | 1.10 |
| [IJR](https://easycompare.io/research/ijr): iShares Core S&P Small-Cap ETF | 95.0% | 123% | 1.13 |
| [VXUS](https://easycompare.io/research/vxus): Vanguard Total International Stock ETF | 76.0% | 91.0% | 0.82 |
| SCHA: Schwab U.S. Small-Cap ETF | 97.0% | 124% | 1.18 |
| VTWO: Vanguard Russell 2000 ETF | 98.0% | 128% | 1.17 |
| [IWM](https://easycompare.io/research/iwm): iShares Russell 2000 ETF | 98.0% | 129% | 1.17 |

### What diversifies VXF?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in VXF into DBMF would have cut the portfolio's volatility by 22% over the past 5 years and raised its annual return (+6.2% for VXF alone, +7.5% for the mix).
- Among large ETFs, DXJ, GCOW and GLD have moved largely independently of VXF over the past 5 years, with correlations of 0.45 or lower, and each still earned a positive 5-year return.
- CAH made money in three of the five calendar years in which VXF lost money.

| Investment | Correlation with VXF | 5Y return | Volatility | Sharpe | Rose in VXF's 5 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.44 | +225% | 19.1% | 1.34 | 2 of 5 |
| GCOW: Pacer Global Cash Cows Dividend ETF | 0.45 | +93.4% | 13.6% | 1.04 | 1 of 5 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.10 | +126% | 18.9% | 0.96 | 2 of 5 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.27 | +177% | 25.5% | 0.93 | 2 of 5 |
| AMLP: Alerian MLP ETF | 0.46 | +111% | 18.9% | 0.89 | 2 of 5 |
| EDIV: State Street SPDR S&P Emerging Markets Dividend ETF | 0.49 | +69.9% | 13.8% | 0.84 | 0 of 5 |
| DBMF: iMGP DBi Managed Futures Strategy ETF | -0.22 | +59.7% | 12.4% | 0.82 | 1 of 5 |
| DBA: Invesco DB Agriculture Fund | 0.16 | +66.4% | 13.8% | 0.81 | 1 of 5 |

## Common questions

### What was VXF's worst drawdown?

VXF's deepest decline since it began trading in 2002 was 57.5%, from October 2007 to March 2009. It took 21 months from the low to climb back to its old high.

### What were VXF's best and worst years?

Over 23 full calendar years, VXF's best year was 2003, when it returned 45.1%. Its worst was 2008, with a return of -38.7%.

### Is there a better investment than VXF?

Among VXF's popular alternatives, VOO, VTI and IUSG earned more than VXF with less volatility over the past 5 years. VOO returned 12.8% a year at 16.9% volatility, against 4.9% a year at 22.4%. Looking beyond its popular alternatives, DIA (US large-cap equity) and MGV (US large-cap value) earned more than VXF with less volatility over the past 5 years. DIA returned 9.9% a year at 14.8% volatility, against 4.9% a year at 22.4%.

### Is VXF more volatile than the S&P 500?

Yes. VXF's volatility over the past 5 years was 22.4%, 1.3 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VXF's return lands within 22.4% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is VXF's Sharpe ratio?

VXF's Sharpe ratio over the past 5 years was 0.33, against 0.79 for the S&P 500, so VXF earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is VXF with the S&P 500?

Over the past 5 years, VXF's monthly returns had a correlation of 0.88 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They move almost in lockstep, so holding both adds little diversification. In the table, the correlation column measures each option against VXF instead: the lower it is, the more that option would diversify a VXF holding.

### What are the best alternatives to VXF?

Of the 22 popular alternatives we compared, nine outperformed VXF in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: IUSG, VOO and VONE.

### Did VXF outperform the S&P 500?

VXF finished ahead of the S&P 500 (SPY) in ten of 23 full calendar years. In 2025, it returned +11.4%, against +17.7% for the index.

### How did VXF do in stock market crashes?

VXF fell less than the S&P 500 (SPY) in one of the nine major crashes it has traded through, and further in eight. The clearest case was the 2015 China and oil sell-off, when VXF fell 22.3% and the S&P 500 fell 12.8%.

### What diversifies VXF?

These had a low correlation with VXF over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.44), GCOW (correlation 0.45) and GLD (correlation 0.10); among large stocks, CAH (correlation 0.33), MCK (correlation 0.18) and MPC (correlation 0.25). A correlation near zero means the two have moved largely independently.

## More research

- [Vanguard S&P 500 ETF (VOO) Performance, Alternatives and Market Rank](https://easycompare.io/research/voo)
- [Vanguard Morningstar Total Stock Market ETF (VTI) Performance, Alternatives and Market Rank](https://easycompare.io/research/vti)
- [iShares Core S&P Total U.S. Stock Market ETF (ITOT) Performance, Alternatives and Market Rank](https://easycompare.io/research/itot)
- [Schwab U.S. Broad Market ETF (SCHB) Performance, Alternatives and Market Rank](https://easycompare.io/research/schb)
- [Vanguard Morningstar Mid-Cap ETF (VO) Performance, Alternatives and Market Rank](https://easycompare.io/research/vo)
- [iShares Russell Mid-Cap ETF (IWR) Performance, Alternatives and Market Rank](https://easycompare.io/research/iwr)
- [Vanguard Morningstar Small-Cap ETF (VB) Performance, Alternatives and Market Rank](https://easycompare.io/research/vb)
- [iShares Core S&P Small-Cap ETF (IJR) Performance, Alternatives and Market Rank](https://easycompare.io/research/ijr)
- [Vanguard Total International Stock ETF (VXUS) Performance, Alternatives and Market Rank](https://easycompare.io/research/vxus)
- [iShares Core S&P Mid-Cap ETF (IJH) Performance, Alternatives and Market Rank](https://easycompare.io/research/ijh)
- [iShares Russell 2000 ETF (IWM) Performance, Alternatives and Market Rank](https://easycompare.io/research/iwm)
- [Schwab U.S. Dividend Equity ETF (SCHD) Performance, Alternatives and Market Rank](https://easycompare.io/research/schd)

## Explore further

- Full page with charts: https://easycompare.io/research/vxf
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against VXF live: https://betterthanspy.com/?b=VXF&utm_source=easycompare&utm_medium=research