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Vanguard Target Retirement 2040 Fund (VFORX)
Performance
Return for Risk
Dividends
Drawdowns
Volatility

Fund Info

ISIN
US92202E8701
CUSIP
92202E870
Issuer
Vanguard
Inception Date
Jun 7, 2006
Min. Investment
$1,000
Distribution Policy
Distributing
Asset Class
Multi-Asset
Asset Class Size
Large-Cap
Asset Class Style
Blend

Share Price Chart


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Performance

Performance Chart

The chart shows the growth of an initial investment of $10,000 in Vanguard Target Retirement 2040 Fund, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends.


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S&P 500 Index

Returns By Period

Vanguard Target Retirement 2040 Fund (VFORX) has returned -3.32% so far this year and 15.06% over the past 12 months. Over the last ten years, VFORX has returned 9.48% per year, falling short of the S&P 500 Index benchmark, which averaged 12.16% annually.


Vanguard Target Retirement 2040 Fund

1D
-0.14%
1M
-7.37%
YTD
-3.32%
6M
-0.71%
1Y
15.06%
3Y*
13.11%
5Y*
7.08%
10Y*
9.48%

Benchmark (S&P 500 Index)

1D
2.91%
1M
-5.09%
YTD
-4.63%
6M
-2.39%
1Y
16.33%
3Y*
16.69%
5Y*
10.18%
10Y*
12.16%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Monthly Returns

Based on dividend-adjusted daily data since Jun 7, 2006, VFORX's average daily return is +0.03%, while the average monthly return is +0.69%. At this rate, your investment would double in approximately 8.4 years.

Historically, 66% of months were positive and 34% were negative. The best month was Nov 2020 with a return of +10.3%, while the worst month was Oct 2008 at -16.7%. The longest winning streak lasted 13 consecutive months, and the longest losing streak was 5 months.

On a daily basis, VFORX closed higher 54% of trading days. The best single day was Oct 13, 2008 with a return of +10.3%, while the worst single day was Mar 16, 2020 at -9.5%.


JanFebMarAprMayJunJulAugSepOctNovDecTotal
20262.52%1.80%-7.37%-3.32%
20252.50%0.05%-2.69%0.90%4.16%3.79%0.70%2.51%2.90%1.64%0.30%0.75%18.77%
2024-0.25%3.21%2.64%-3.25%3.70%1.39%2.20%2.06%2.04%-2.22%3.29%-2.29%12.90%
20236.53%-2.87%2.64%1.11%-1.01%4.48%2.89%-2.37%-3.77%-2.55%7.90%5.03%18.56%
2022-4.19%-2.38%0.86%-7.04%0.38%-6.95%6.13%-3.69%-8.35%4.74%7.28%-3.74%-17.00%
2021-0.32%2.02%2.09%3.52%1.26%1.22%0.66%1.89%-3.46%4.02%-2.03%3.05%14.55%

Benchmark Metrics

Vanguard Target Retirement 2040 Fund has an annualized alpha of 0.41%, beta of 0.83, and R² of 0.96 versus S&P 500 Index. Calculated based on daily prices since June 08, 2006.

  • This fund participated in 88.07% of S&P 500 Index downside but only 84.56% of its upside — more exposed to losses than it benefited from rallies.

Alpha
0.41%
Beta
0.83
0.96
Upside Capture
84.56%
Downside Capture
88.07%

Expense Ratio

VFORX has an expense ratio of 0.08%, which is considered low.


Return for Risk

Risk / Return Rank

VFORX ranks 69 for risk / return — better than 69% of mutual funds on our site. You're getting solid returns for the risk taken. A good sign, especially for investors who want growth without excessive volatility.


VFORX Risk / Return Rank: 6969
Overall Rank
VFORX Sharpe Ratio Rank: 6868
Sharpe Ratio Rank
VFORX Sortino Ratio Rank: 6969
Sortino Ratio Rank
VFORX Omega Ratio Rank: 6767
Omega Ratio Rank
VFORX Calmar Ratio Rank: 6666
Calmar Ratio Rank
VFORX Martin Ratio Rank: 7474
Martin Ratio Rank
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.

Return / Risk — by metrics

The table below present risk-adjusted performance metrics for Vanguard Target Retirement 2040 Fund (VFORX) and compare them to a chosen benchmark (S&P 500 Index).


VFORXBenchmarkDifference

Sharpe ratio

Return per unit of total volatility

1.22

0.90

+0.33

Sortino ratio

Return per unit of downside risk

1.76

1.39

+0.37

Omega ratio

Gain probability vs. loss probability

1.26

1.21

+0.05

Calmar ratio

Return relative to maximum drawdown

1.55

1.40

+0.15

Martin ratio

Return relative to average drawdown

7.04

6.61

+0.43

Explore VFORX risk-adjusted metrics in detail

Dive deeper into individual metrics with historical trends, benchmark comparisons, and performance across different time periods.

Dividends

Dividend History

Vanguard Target Retirement 2040 Fund provided a 2.86% dividend yield over the last twelve months, with an annual payout of $1.38 per share. The fund has been increasing its distributions for 3 consecutive years.


0.00%5.00%10.00%15.00%20.00%$0.00$2.00$4.00$6.00$8.0020152016201720182019202020212022202320242025
Dividends
Dividend Yield
PeriodTTM20252024202320222021202020192018201720162015
Dividend$1.38$1.38$1.24$0.94$0.89$8.69$0.91$0.89$0.84$0.01$0.72$0.85

Dividend yield

2.86%2.77%2.86%2.38%2.60%20.68%2.06%2.28%2.58%0.04%2.40%2.99%

Monthly Dividends

The table displays the monthly dividend distributions for Vanguard Target Retirement 2040 Fund. The dividends shown in the table have been adjusted to account for any splits that may have occurred.


JanFebMarAprMayJunJulAugSepOctNovDecTotal
2026$0.00$0.00$0.00$0.00
2025$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$1.38$1.38
2024$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$1.24$1.24
2023$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.94$0.94
2022$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.89$0.89
2021$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$8.69$8.69

Drawdowns

Drawdowns Chart

The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.


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Worst Drawdowns

The table below displays the maximum drawdowns of the Vanguard Target Retirement 2040 Fund. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.

The maximum drawdown for the Vanguard Target Retirement 2040 Fund was 51.63%, occurring on Mar 9, 2009. Recovery took 541 trading sessions.

The current Vanguard Target Retirement 2040 Fund drawdown is 7.70%.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-51.63%Oct 15, 2007352Mar 9, 2009541Apr 29, 2011893
-29.35%Feb 13, 202027Mar 23, 202099Aug 12, 2020126
-24.32%Nov 9, 2021235Oct 14, 2022339Feb 22, 2024574
-19.69%May 2, 2011108Oct 3, 2011113Mar 15, 2012221
-16.45%May 22, 2015183Feb 11, 2016128Aug 15, 2016311

Volatility

Volatility Chart

The chart below shows the rolling one-month volatility.


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