VB vs MDY: returns, risk and drawdowns compared
Vanguard Small-Cap ETF against SPDR S&P MidCap 400 ETF Trust, over the same 6 years (July 2020 to October 2026) with dividends reinvested.
Data updated October 2026
From July 2020 to October 2026, VB returned 12.7% a year and MDY 13.2% a year on average, so MDY came out ahead by 0.5% a year. VB was the more volatile of the two (18.5% against 17.7% a year), and the deepest falls from a month-end high were 24.4% for VB and 21.6% for MDY.
The correlation of monthly returns was 0.99: they moved almost in lockstep. Over 41 rolling 3-year periods, VB did better in 37% and MDY in 63%.
Side by side
| VB | MDY | |
|---|---|---|
| Annual return (CAGR) | +12.7% | +13.2% |
| Total return | +114% | +119% |
| Annual volatility | 18.5% | 17.7% |
| Maximum drawdown (month-end) | −24.4% | −21.6% |
| Worst month | −9.6% | −9.6% |
| Best month | +15.8% | +14.3% |
| Positive months | 61% | 59% |
| Best year | 2023: +18.2% | 2021: +24.5% |
| Worst year | 2022: −17.5% | 2022: −13.3% |
| 1-year return | +13.8% | +13.4% |
| 5 years, a year | +6.1% | +6.9% |
| 10 years, a year | — | +10.4% |
| Trading currency | USD | USD |
First nine rows: the same 76 months for both funds. Trailing returns: to each fund’s last close.
Growth of 10,000: VB vs MDY
Returns by calendar year
| Year | VB | MDY |
|---|---|---|
| 2025 | +8.9% | +7.2% |
| 2024 | +14.2% | +13.6% |
| 2023 | +18.2% | +16.1% |
| 2022 | −17.5% | −13.3% |
| 2021 | +17.6% | +24.5% |
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
The comparison uses only the months in which both funds have prices, so the figures cover the same period even when one fund is older.
Questions
Which has returned more, VB or MDY?
From July 2020 to October 2026, VB returned +12.7% a year and MDY +13.2% a year, with dividends reinvested. Over rolling 3-year periods VB did better in 37% of cases. Past returns do not predict future returns.
Which is riskier, VB or MDY?
Over the same months annual volatility was 18.5% for VB and 17.7% for MDY; the deepest fall from a month-end high was 24.4% and 21.6%, and the worst single month −9.6% and −9.6%.
How correlated are VB and MDY?
The correlation of their monthly returns was 0.99: they moved almost in lockstep. Holding both adds little diversification compared with holding one.
More comparisons
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.