TRRDX vs. VOO
Compare and contrast key facts about T. Rowe Price Retirement 2040 Fund (TRRDX) and Vanguard S&P 500 ETF (VOO).
TRRDX is managed by T. Rowe Price. It was launched on Sep 29, 2002. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: TRRDX or VOO.
Key characteristics
| TRRDX | VOO | |
|---|---|---|
| YTD Return | 13.07% | 18.91% |
| 1Y Return | 21.36% | 28.20% |
| 3Y Return (Ann) | 3.92% | 9.93% |
| 5Y Return (Ann) | 9.97% | 15.31% |
| 10Y Return (Ann) | 8.78% | 12.87% |
| Sharpe Ratio | 1.94 | 2.21 |
| Daily Std Dev | 10.85% | 12.64% |
| Max Drawdown | -53.50% | -33.99% |
| Current Drawdown | -0.64% | -0.60% |
Correlation
The correlation between TRRDX and VOO is 0.95, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
TRRDX vs. VOO - Performance Comparison
In the year-to-date period, TRRDX achieves a 13.07% return, which is significantly lower than VOO's 18.91% return. Over the past 10 years, TRRDX has underperformed VOO with an annualized return of 8.78%, while VOO has yielded a comparatively higher 12.87% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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TRRDX vs. VOO - Expense Ratio Comparison
TRRDX has a 0.61% expense ratio, which is higher than VOO's 0.03% expense ratio.
Risk-Adjusted Performance
TRRDX vs. VOO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Retirement 2040 Fund (TRRDX) and Vanguard S&P 500 ETF (VOO). 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.
Dividends
TRRDX vs. VOO - Dividend Comparison
TRRDX's dividend yield for the trailing twelve months is around 4.95%, more than VOO's 1.28% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TRRDX T. Rowe Price Retirement 2040 Fund | 4.95% | 5.60% | 8.92% | 7.92% | 4.96% | 6.10% | 9.51% | 3.96% | 4.74% | 6.02% | 5.27% | 2.65% |
VOO Vanguard S&P 500 ETF | 1.28% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
TRRDX vs. VOO - Drawdown Comparison
The maximum TRRDX drawdown since its inception was -53.50%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for TRRDX and VOO. For additional features, visit the drawdowns tool.
Volatility
TRRDX vs. VOO - Volatility Comparison
The current volatility for T. Rowe Price Retirement 2040 Fund (TRRDX) is 3.31%, while Vanguard S&P 500 ETF (VOO) has a volatility of 3.83%. This indicates that TRRDX experiences smaller price fluctuations and is considered to be less risky than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.