TRRDX vs. VTI

Last updated Jul 14, 2026

TRRDX (T. Rowe Price Retirement 2040 Fund) and VTI (Vanguard Total Stock Market ETF) are both funds - TRRDX is a Target Retirement Date fund managed by T. Rowe Price, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. Over the past 10 years, TRRDX returned 10.45%/yr vs 14.67%/yr for VTI. Their correlation of 0.95 suggests significant overlap in exposure. TRRDX charges 0.60%/yr vs 0.03%/yr for VTI.

Performance

TRRDX vs. VTI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Retirement 2040 Fund (TRRDX) and Vanguard Total Stock Market ETF (VTI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TRRDX achieves a 10.26% return, which is significantly lower than VTI's 10.96% return. Over the past 10 years, TRRDX has underperformed VTI with an annualized return of 10.45%, while VTI has yielded a comparatively higher 14.67% annualized return.

TRRDX

• 1D: 0.26%
• 1M: 1.07%
• 6M: 7.21%
• YTD: 10.26%
• 1Y: 14.45%
• 3Y*: 14.54%
• 5Y*: 7.07%
• 10Y*: 10.45%

VTI

• 1D: -0.78%
• 1M: 1.22%
• 6M: 8.45%
• YTD: 10.96%
• 1Y: 21.85%
• 3Y*: 19.76%
• 5Y*: 12.01%
• 10Y*: 14.67%

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

TRRDX vs. VTI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TRRDX T. Rowe Price Retirement 2040 Fund	10.26%	12.53%	13.15%	19.60%	-18.77%	16.52%	18.10%	24.71%	-7.41%	22.03%
VTI Vanguard Total Stock Market ETF	10.96%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.23%	21.21%

Correlation

The correlation between TRRDX and VTI is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Sep 30, 2002	0.95

The correlation between TRRDX and VTI has been stable across timeframes, ranging from 0.90 to 0.95 - a consistent structural relationship.

Return for Risk

TRRDX vs. VTI — Risk / Return Rank

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

TRRDX

TRRDX Risk / Return Rank: 32
TRRDX Sharpe Ratio Rank: 30
TRRDX Sortino Ratio Rank: 29
TRRDX Omega Ratio Rank: 32
TRRDX Calmar Ratio Rank: 31
TRRDX Martin Ratio Rank: 37

VTI

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

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.

TRRDX vs. VTI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Retirement 2040 Fund (TRRDX) and Vanguard Total Stock Market ETF (VTI). 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.

	TRRDX	VTI	Difference
Sharpe ratio: Return per unit of total volatility	1.19	1.71	-0.52
Sortino ratio: Return per unit of downside risk	1.69	2.36	-0.68
Omega ratio: Gain probability vs. loss probability	1.23	1.31	-0.08
Calmar ratio: Return relative to maximum drawdown	1.62	2.46	-0.84
Martin ratio: Return relative to average drawdown	6.41	10.78	-4.37

TRRDX vs. VTI - Sharpe Ratio Comparison

The current TRRDX Sharpe Ratio is 1.19, which is lower than the VTI Sharpe Ratio of 1.71. The chart below compares the historical Sharpe Ratios of TRRDX and VTI, 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

TRRDX vs. VTI - Drawdown Comparison

The maximum TRRDX drawdown since its inception was -53.50%, roughly equal to the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for TRRDX and VTI.

Drawdown Indicators

	TRRDX	VTI	Difference
Max Drawdown Largest peak-to-trough decline	-53.50%	-55.45%	+1.95%
Max Drawdown (1Y) Largest decline over 1 year	-8.88%	-8.92%	+0.04%
Max Drawdown (3Y) Largest decline over 3 years	-14.03%	-19.30%	+5.27%
Max Drawdown (5Y) Largest decline over 5 years	-27.26%	-25.36%	-1.90%
Max Drawdown (10Y) Largest decline over 10 years	-31.46%	-35.00%	+3.54%
Current Drawdown Current decline from peak	-0.37%	-0.94%	+0.57%
Average Drawdown Average peak-to-trough decline	-6.52%	-8.00%	+1.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.22%	2.03%	+0.19%

Volatility

TRRDX vs. VTI - Volatility Comparison

T. Rowe Price Retirement 2040 Fund (TRRDX) and Vanguard Total Stock Market ETF (VTI) have volatilities of 3.94% and 4.08%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TRRDX	VTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.94%	4.08%	-0.14%
Volatility (6M) Calculated over the trailing 6-month period	9.76%	10.13%	-0.37%
Volatility (1Y) Calculated over the trailing 1-year period	12.06%	12.85%	-0.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.25%	17.51%	-3.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.54%	18.29%	-3.75%

TRRDX vs. VTI - Expense Ratio Comparison

TRRDX has a 0.60% expense ratio, which is higher than VTI's 0.03% expense ratio.

Dividends

TRRDX vs. VTI - Dividend Comparison

TRRDX has not paid dividends to shareholders, while VTI's dividend yield for the trailing twelve months is around 1.05%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TRRDX T. Rowe Price Retirement 2040 Fund	0.00%	0.00%	2.26%	5.60%	8.92%	7.92%	4.96%	6.10%	9.51%	3.96%	3.36%	4.61%
VTI Vanguard Total Stock Market ETF	1.05%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both TRRDX and VTI in my portfolio?

With a correlation of 0.90, TRRDX and VTI move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, TRRDX or VTI?

VTI has higher volatility (4.08%) compared to TRRDX (3.94%). In terms of maximum drawdown, TRRDX dropped -53.50% vs VTI's -55.45%.

Which has better risk-adjusted returns?

VTI currently has the higher Sharpe Ratio (1.71 vs 1.19), 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.