PARFX vs. VGT

Last updated Aug 1, 2026

PARFX (T. Rowe Price Retirement 2050 Fund) and VGT (Vanguard Information Technology ETF) are both funds - PARFX is a Target Retirement Date fund managed by T. Rowe Price, while VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index. Over the past 10 years, PARFX returned 10.97%/yr vs 24.06%/yr for VGT. Their correlation of 0.85 means they have usually moved in the same direction. PARFX charges 0.89%/yr vs 0.09%/yr for VGT.

Performance

PARFX vs. VGT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Retirement 2050 Fund (PARFX) and Vanguard Information Technology ETF (VGT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PARFX achieves a 10.66% return, which is significantly lower than VGT's 20.36% return. Over the past 10 years, PARFX has underperformed VGT with an annualized return of 10.97%, while VGT has yielded a comparatively higher 24.06% annualized return.

PARFX

• 1D: 1.77%
• 1M: -0.04%
• 6M: 6.84%
• YTD: 10.66%
• 1Y: 21.85%
• 3Y*: 15.59%
• 5Y*: 8.48%
• 10Y*: 10.97%
• ALL TIME*: 8.14%

VGT

• 1D: -0.38%
• 1M: -1.30%
• 6M: 21.30%
• YTD: 20.36%
• 1Y: 34.81%
• 3Y*: 26.48%
• 5Y*: 17.81%
• 10Y*: 24.06%
• ALL TIME*: 14.84%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
PARFX T. Rowe Price Retirement 2050 Fund	$0.00	$0.00	$0.00
VGT Vanguard Information Technology ETF	$440.89M	$515.41M	$573.34M

PARFX vs. VGT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PARFX T. Rowe Price Retirement 2050 Fund	10.66%	18.56%	13.90%	20.55%	-19.31%	17.22%	18.32%	25.12%	-7.93%	20.76%
VGT Vanguard Information Technology ETF	20.36%	21.77%	29.30%	52.66%	-29.70%	30.45%	46.04%	48.62%	2.46%	37.08%

Correlation

The correlation between PARFX and VGT is 0.79, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.79
Correlation (3Y) Balances recent behavior with more history.	0.79
Correlation (5Y) Shows whether the relationship held over a longer period.	0.84
Correlation (10Y) Provides a long-term view across more market conditions.	0.83
Correlation (All Time) Calculated using the full available price history since Jan 3, 2007	0.85

The correlation between PARFX and VGT has been stable across timeframes, ranging from 0.79 to 0.85 - a consistent structural relationship.

Return for Risk

PARFX vs. VGT — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

PARFX

PARFX Risk / Return Rank: 66
PARFX Sharpe Ratio Rank: 67
PARFX Sortino Ratio Rank: 64
PARFX Omega Ratio Rank: 66
PARFX Calmar Ratio Rank: 62
PARFX Martin Ratio Rank: 73

VGT

VGT Risk / Return Rank: 52
VGT Sharpe Ratio Rank: 55
VGT Sortino Ratio Rank: 52
VGT Omega Ratio Rank: 50
VGT Calmar Ratio Rank: 55
VGT Martin Ratio Rank: 46

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

PARFX vs. VGT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Retirement 2050 Fund (PARFX) and Vanguard Information Technology ETF (VGT). 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.

	PARFX	VGT	Difference
Sharpe ratio: Return per unit of total volatility	1.54	1.31	+0.23
Sortino ratio: Return per unit of downside risk	2.17	1.82	+0.35
Omega ratio: Gain probability vs. loss probability	1.28	1.23	+0.06
Calmar ratio: Return relative to maximum drawdown	2.04	1.94	+0.10
Martin ratio: Return relative to average drawdown	8.77	5.23	+3.54

PARFX vs. VGT - Sharpe Ratio Comparison

The current PARFX Sharpe Ratio is 1.54, which is comparable to the VGT Sharpe Ratio of 1.31. The chart below compares the historical Sharpe Ratios of PARFX and VGT, 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

PARFX vs. VGT - Drawdown Comparison

The maximum PARFX drawdown since its inception was -53.67%, roughly equal to the maximum VGT drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for PARFX and VGT.

Drawdown Indicators

	PARFX	VGT	Difference
Max Drawdown Largest peak-to-trough decline	-53.67%	-54.63%	+0.96%
Max Drawdown (1Y) Largest decline over 1 year	-9.77%	-16.40%	+6.63%
Max Drawdown (3Y) Largest decline over 3 years	-15.48%	-27.23%	+11.75%
Max Drawdown (5Y) Largest decline over 5 years	-28.08%	-35.07%	+6.99%
Max Drawdown (10Y) Largest decline over 10 years	-32.52%	-35.07%	+2.55%
Current Drawdown Current decline from peak	-0.97%	-9.93%	+8.96%
Average Drawdown Average peak-to-trough decline	-7.59%	-7.95%	+0.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.27%	6.07%	-3.80%

Volatility

PARFX vs. VGT - Volatility Comparison

The current volatility for T. Rowe Price Retirement 2050 Fund (PARFX) is 3.49%, while Vanguard Information Technology ETF (VGT) has a volatility of 8.42%. This indicates that PARFX experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PARFX	VGT	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.49%	8.42%	-4.93%
Volatility (6M) Calculated over the trailing 6-month period	10.78%	20.14%	-9.36%
Volatility (1Y) Calculated over the trailing 1-year period	12.93%	24.28%	-11.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.20%	25.83%	-10.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.38%	24.89%	-9.51%

PARFX vs. VGT - Expense Ratio Comparison

PARFX has a 0.89% expense ratio, which is higher than VGT's 0.09% expense ratio.

Dividends

PARFX vs. VGT - Dividend Comparison

PARFX's dividend yield for the trailing twelve months is around 3.45%, more than VGT's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PARFX T. Rowe Price Retirement 2050 Fund	3.45%	3.82%	1.69%	4.32%	7.60%	6.77%	4.27%	5.55%	8.33%	2.34%	3.11%	4.00%
VGT Vanguard Information Technology ETF	0.38%	0.40%	0.60%	0.65%	0.91%	0.64%	0.82%	1.11%	1.29%	0.99%	1.31%	1.28%

Frequently Asked Questions

Can I hold both PARFX and VGT in my portfolio?

PARFX and VGT have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PARFX or VGT?

VGT has higher volatility (8.42%) compared to PARFX (3.49%). In terms of maximum drawdown, PARFX dropped -53.67% vs VGT's -54.63%.

Which has better risk-adjusted returns?

PARFX currently has the higher Sharpe Ratio (1.54 vs 1.31), 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.