FAGIX vs. VFORX

Last updated Jun 13, 2026

FAGIX (Fidelity Capital & Income Fund) and VFORX (Vanguard Target Retirement 2040 Fund) are both mutual funds - FAGIX is a High Yield Bonds fund actively managed by Fidelity, while VFORX is a Target Retirement Date fund managed by Vanguard. Over the past 10 years, FAGIX returned 8.03%/yr vs 10.63%/yr for VFORX. A 0.74 correlation means they provide meaningful diversification when combined. FAGIX charges 0.67%/yr vs 0.08%/yr for VFORX.

Performance

FAGIX vs. VFORX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Capital & Income Fund (FAGIX) and Vanguard Target Retirement 2040 Fund (VFORX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FAGIX achieves a 7.40% return, which is significantly lower than VFORX's 8.11% return. Over the past 10 years, FAGIX has underperformed VFORX with an annualized return of 8.03%, while VFORX has yielded a comparatively higher 10.63% annualized return.

FAGIX

• 1D: 1.15%
• 1M: 0.25%
• YTD: 7.40%
• 6M: 7.95%
• 1Y: 16.73%
• 3Y*: 12.87%
• 5Y*: 6.75%
• 10Y*: 8.03%

VFORX

• 1D: 1.91%
• 1M: 0.13%
• YTD: 8.11%
• 6M: 8.81%
• 1Y: 19.96%
• 3Y*: 16.17%
• 5Y*: 8.20%
• 10Y*: 10.63%

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

FAGIX vs. VFORX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAGIX Fidelity Capital & Income Fund	7.40%	12.38%	10.69%	13.02%	-11.50%	11.13%	9.95%	18.96%	-7.17%	11.66%
VFORX Vanguard Target Retirement 2040 Fund	8.11%	18.77%	12.90%	18.56%	-17.00%	14.55%	15.48%	23.86%	-7.32%	18.45%

Correlation

The correlation between FAGIX and VFORX is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since Jun 7, 2006	0.74

The correlation between FAGIX and VFORX shifts across timeframes, from 0.74 (all time) to 0.85 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

FAGIX vs. VFORX — Risk / Return Rank

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

FAGIX

FAGIX Risk / Return Rank: 91
FAGIX Sharpe Ratio Rank: 91
FAGIX Sortino Ratio Rank: 88
FAGIX Omega Ratio Rank: 87
FAGIX Calmar Ratio Rank: 95
FAGIX Martin Ratio Rank: 96

VFORX

VFORX Risk / Return Rank: 73
VFORX Sharpe Ratio Rank: 73
VFORX Sortino Ratio Rank: 71
VFORX Omega Ratio Rank: 72
VFORX Calmar Ratio Rank: 71
VFORX Martin Ratio Rank: 79

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.

FAGIX vs. VFORX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Capital & Income Fund (FAGIX) and Vanguard Target Retirement 2040 Fund (VFORX). 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.

	FAGIX	VFORX	Difference
Sharpe ratio: Return per unit of total volatility	2.63	2.00	+0.63
Sortino ratio: Return per unit of downside risk	3.75	2.78	+0.97
Omega ratio: Gain probability vs. loss probability	1.52	1.37	+0.15
Calmar ratio: Return relative to maximum drawdown	4.85	2.67	+2.18
Martin ratio: Return relative to average drawdown	19.86	11.49	+8.37

FAGIX vs. VFORX - Sharpe Ratio Comparison

The current FAGIX Sharpe Ratio is 2.63, which is higher than the VFORX Sharpe Ratio of 2.00. The chart below compares the historical Sharpe Ratios of FAGIX and VFORX, 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

FAGIX vs. VFORX - Drawdown Comparison

The maximum FAGIX drawdown since its inception was -37.97%, smaller than the maximum VFORX drawdown of -51.63%. Use the drawdown chart below to compare losses from any high point for FAGIX and VFORX.

Drawdown Indicators

	FAGIX	VFORX	Difference
Max Drawdown Largest peak-to-trough decline	-37.97%	-51.63%	+13.66%
Max Drawdown (1Y) Largest decline over 1 year	-3.49%	-7.70%	+4.21%
Max Drawdown (3Y) Largest decline over 3 years	-7.26%	-12.12%	+4.86%
Max Drawdown (5Y) Largest decline over 5 years	-15.42%	-24.32%	+8.90%
Max Drawdown (10Y) Largest decline over 10 years	-28.45%	-29.35%	+0.90%
Current Drawdown Current decline from peak	-1.04%	-1.82%	+0.78%
Average Drawdown Average peak-to-trough decline	-6.98%	-6.77%	-0.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.85%	1.78%	-0.93%

Volatility

FAGIX vs. VFORX - Volatility Comparison

The current volatility for Fidelity Capital & Income Fund (FAGIX) is 2.71%, while Vanguard Target Retirement 2040 Fund (VFORX) has a volatility of 4.19%. This indicates that FAGIX experiences smaller price fluctuations and is considered to be less risky than VFORX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAGIX	VFORX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.71%	4.19%	-1.48%
Volatility (6M) Calculated over the trailing 6-month period	5.30%	8.47%	-3.17%
Volatility (1Y) Calculated over the trailing 1-year period	6.42%	10.27%	-3.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.66%	12.51%	-5.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.84%	13.70%	-5.86%

FAGIX vs. VFORX - Expense Ratio Comparison

FAGIX has a 0.67% expense ratio, which is higher than VFORX's 0.08% expense ratio.

Dividends

FAGIX vs. VFORX - Dividend Comparison

FAGIX's dividend yield for the trailing twelve months is around 4.47%, more than VFORX's 2.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FAGIX Fidelity Capital & Income Fund	4.47%	4.74%	5.02%	5.28%	10.25%	6.08%	4.59%	5.00%	5.67%	5.05%	4.57%	4.51%
VFORX Vanguard Target Retirement 2040 Fund	2.56%	2.77%	2.86%	2.38%	2.60%	20.68%	2.06%	2.28%	2.58%	0.04%	2.40%	2.99%

Frequently Asked Questions

Can I hold both FAGIX and VFORX in my portfolio?

FAGIX and VFORX have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FAGIX or VFORX?

VFORX has higher volatility (4.19%) compared to FAGIX (2.71%). In terms of maximum drawdown, FAGIX dropped -37.97% vs VFORX's -51.63%.

Which has better risk-adjusted returns?

FAGIX currently has the higher Sharpe Ratio (2.63 vs 2.00), 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.