TKR vs. VGT

Last updated Jun 3, 2026

TKR (The Timken Company) is a stock, while VGT (Vanguard Information Technology ETF) is Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index. Over the past 10 years, TKR returned 17.00%/yr vs 25.97%/yr for VGT. A 0.54 correlation means they provide meaningful diversification when combined.

Performance

TKR vs. VGT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in The Timken Company (TKR) 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, TKR achieves a 57.80% return, which is significantly higher than VGT's 33.62% return. Over the past 10 years, TKR has underperformed VGT with an annualized return of 17.00%, while VGT has yielded a comparatively higher 25.97% annualized return.

TKR

• 1D: 4.24%
• 1M: 21.40%
• YTD: 57.80%
• 6M: 66.32%
• 1Y: 94.19%
• 3Y*: 21.04%
• 5Y*: 10.26%
• 10Y*: 17.00%

VGT

• 1D: 1.27%
• 1M: 19.95%
• YTD: 33.62%
• 6M: 32.71%
• 1Y: 65.14%
• 3Y*: 34.15%
• 5Y*: 23.05%
• 10Y*: 25.97%

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

TKR vs. VGT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TKR The Timken Company	57.80%	20.02%	-9.48%	15.36%	3.91%	-9.03%	40.35%	54.69%	-22.18%	26.77%
VGT Vanguard Information Technology ETF	33.62%	21.77%	29.30%	52.66%	-29.70%	30.45%	46.04%	48.62%	2.46%	37.08%

Correlation

The correlation between TKR and VGT is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.48
Correlation (10Y) Calculated over the trailing 10-year period	0.46
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.54

The correlation between TKR and VGT shifts across timeframes, from 0.40 (1 year) to 0.54 (all time), reflecting how their relationship changes across market environments.

Return for Risk

TKR vs. VGT — Risk / Return Rank

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

TKR

TKR Risk / Return Rank: 93
TKR Sharpe Ratio Rank: 94
TKR Sortino Ratio Rank: 93
TKR Omega Ratio Rank: 91
TKR Calmar Ratio Rank: 95
TKR Martin Ratio Rank: 95

VGT

VGT Risk / Return Rank: 81
VGT Sharpe Ratio Rank: 91
VGT Sortino Ratio Rank: 86
VGT Omega Ratio Rank: 83
VGT Calmar Ratio Rank: 78
VGT Martin Ratio Rank: 69

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.

TKR vs. VGT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The Timken Company (TKR) 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.

	TKR	VGT	Difference
Sharpe ratio Return per unit of total volatility	2.88	3.19	-0.31
Sortino ratio Return per unit of downside risk	3.81	3.88	-0.07
Omega ratio Gain probability vs. loss probability	1.46	1.51	-0.05
Calmar ratio Return relative to maximum drawdown	7.13	4.06	+3.07
Martin ratio Return relative to average drawdown	19.08	13.01	+6.07
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TKR vs. VGT - Sharpe Ratio Comparison

The current TKR Sharpe Ratio is 2.88, which is comparable to the VGT Sharpe Ratio of 3.19. The chart below compares the historical Sharpe Ratios of TKR 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.

Sharpe Ratios by Period

	TKR	VGT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.88	3.19	-0.31
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.31	0.92	-0.61
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.48	1.06	-0.58
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	0.68	-0.43

Drawdowns

TKR vs. VGT - Drawdown Comparison

The maximum TKR drawdown since its inception was -72.45%, which is greater than VGT's maximum drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for TKR and VGT.

Drawdown Indicators

	TKR	VGT	Difference
Max Drawdown Largest peak-to-trough decline	-72.45%	-54.63%	-17.82%
Max Drawdown (1Y) Largest decline over 1 year	-13.40%	-16.40%	+3.00%
Max Drawdown (3Y) Largest decline over 3 years	-37.61%	-27.23%	-10.38%
Max Drawdown (5Y) Largest decline over 5 years	-40.62%	-35.07%	-5.55%
Max Drawdown (10Y) Largest decline over 10 years	-58.26%	-35.07%	-23.19%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-22.03%	-7.95%	-14.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.01%	5.12%	-0.11%

Volatility

TKR vs. VGT - Volatility Comparison

The Timken Company (TKR) has a higher volatility of 14.51% compared to Vanguard Information Technology ETF (VGT) at 5.98%. This indicates that TKR's price experiences larger fluctuations and is considered to be riskier than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TKR	VGT	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.51%	5.98%	+8.53%
Volatility (6M) Calculated over the trailing 6-month period	25.00%	15.98%	+9.02%
Volatility (1Y) Calculated over the trailing 1-year period	32.86%	20.52%	+12.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.81%	25.17%	+7.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	35.77%	24.60%	+11.17%

Dividends

TKR vs. VGT - Dividend Comparison

TKR's dividend yield for the trailing twelve months is around 1.07%, more than VGT's 0.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TKR The Timken Company	1.07%	1.65%	1.89%	1.62%	1.74%	1.72%	1.46%	1.99%	2.97%	2.18%	2.62%	3.60%
VGT Vanguard Information Technology ETF	0.30%	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 TKR and VGT in my portfolio?

TKR and VGT have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TKR or VGT?

TKR has higher volatility (14.51%) compared to VGT (5.98%). In terms of maximum drawdown, TKR dropped -72.45% vs VGT's -54.63%.

Which has better risk-adjusted returns?

VGT currently has the higher Sharpe Ratio (3.19 vs 2.88), 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.