FTBFX vs. VFORX

Last updated Jun 13, 2026

FTBFX (Fidelity Total Bond Fund) and VFORX (Vanguard Target Retirement 2040 Fund) are both mutual funds - FTBFX is a Intermediate Core-Plus Bond fund actively managed by Fidelity, while VFORX is a Target Retirement Date fund managed by Vanguard. Over the past 10 years, FTBFX returned 2.43%/yr vs 10.63%/yr for VFORX. At a correlation of -0.04, they often move in opposite directions. FTBFX charges 0.45%/yr vs 0.08%/yr for VFORX.

Performance

FTBFX vs. VFORX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Total Bond Fund (FTBFX) 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, FTBFX achieves a 0.57% return, which is significantly lower than VFORX's 8.11% return. Over the past 10 years, FTBFX has underperformed VFORX with an annualized return of 2.43%, while VFORX has yielded a comparatively higher 10.63% annualized return.

FTBFX

• 1D: 0.53%
• 1M: 0.47%
• YTD: 0.57%
• 6M: 1.02%
• 1Y: 4.86%
• 3Y*: 4.80%
• 5Y*: 0.60%
• 10Y*: 2.43%

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)

FTBFX vs. VFORX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FTBFX Fidelity Total Bond Fund	0.57%	7.50%	2.13%	7.25%	-13.58%	-0.44%	9.34%	9.89%	-0.66%	4.19%
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 FTBFX and VFORX is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.28
Correlation (10Y) Calculated over the trailing 10-year period	0.14
Correlation (All Time) Calculated using the full available price history since Jun 7, 2006	-0.04

The correlation between FTBFX and VFORX shifts across timeframes, from -0.04 (all time) to 0.42 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

FTBFX vs. VFORX — Risk / Return Rank

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

FTBFX

FTBFX Risk / Return Rank: 34
FTBFX Sharpe Ratio Rank: 36
FTBFX Sortino Ratio Rank: 39
FTBFX Omega Ratio Rank: 35
FTBFX Calmar Ratio Rank: 34
FTBFX Martin Ratio Rank: 28

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.

FTBFX vs. VFORX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Total Bond Fund (FTBFX) 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.

	FTBFX	VFORX	Difference
Sharpe ratio: Return per unit of total volatility	1.36	2.00	-0.64
Sortino ratio: Return per unit of downside risk	2.05	2.78	-0.73
Omega ratio: Gain probability vs. loss probability	1.24	1.37	-0.13
Calmar ratio: Return relative to maximum drawdown	1.80	2.67	-0.87
Martin ratio: Return relative to average drawdown	5.30	11.49	-6.19

FTBFX vs. VFORX - Sharpe Ratio Comparison

The current FTBFX Sharpe Ratio is 1.36, which is lower than the VFORX Sharpe Ratio of 2.00. The chart below compares the historical Sharpe Ratios of FTBFX 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

FTBFX vs. VFORX - Drawdown Comparison

The maximum FTBFX drawdown since its inception was -18.25%, smaller than the maximum VFORX drawdown of -51.63%. Use the drawdown chart below to compare losses from any high point for FTBFX and VFORX.

Drawdown Indicators

	FTBFX	VFORX	Difference
Max Drawdown Largest peak-to-trough decline	-18.25%	-51.63%	+33.38%
Max Drawdown (1Y) Largest decline over 1 year	-2.89%	-7.70%	+4.81%
Max Drawdown (3Y) Largest decline over 3 years	-5.82%	-12.12%	+6.30%
Max Drawdown (5Y) Largest decline over 5 years	-18.25%	-24.32%	+6.07%
Max Drawdown (10Y) Largest decline over 10 years	-18.25%	-29.35%	+11.10%
Current Drawdown Current decline from peak	-1.31%	-1.82%	+0.51%
Average Drawdown Average peak-to-trough decline	-2.32%	-6.77%	+4.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.98%	1.78%	-0.80%

Volatility

FTBFX vs. VFORX - Volatility Comparison

The current volatility for Fidelity Total Bond Fund (FTBFX) is 1.43%, while Vanguard Target Retirement 2040 Fund (VFORX) has a volatility of 4.19%. This indicates that FTBFX 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

	FTBFX	VFORX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.43%	4.19%	-2.76%
Volatility (6M) Calculated over the trailing 6-month period	2.85%	8.47%	-5.62%
Volatility (1Y) Calculated over the trailing 1-year period	3.84%	10.27%	-6.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.67%	12.51%	-6.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.73%	13.70%	-8.97%

FTBFX vs. VFORX - Expense Ratio Comparison

FTBFX has a 0.45% expense ratio, which is higher than VFORX's 0.08% expense ratio.

Dividends

FTBFX vs. VFORX - Dividend Comparison

FTBFX's dividend yield for the trailing twelve months is around 4.36%, more than VFORX's 2.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTBFX Fidelity Total Bond Fund	4.36%	4.36%	4.15%	4.15%	2.54%	1.89%	5.22%	3.03%	3.19%	2.97%	3.61%	3.30%
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 FTBFX and VFORX in my portfolio?

FTBFX and VFORX have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTBFX or VFORX?

VFORX has higher volatility (4.19%) compared to FTBFX (1.43%). In terms of maximum drawdown, FTBFX dropped -18.25% vs VFORX's -51.63%.

Which has better risk-adjusted returns?

VFORX currently has the higher Sharpe Ratio (2.00 vs 1.36), 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.