VEA vs. VTTVX

Last updated Jun 9, 2026

VEA (Vanguard FTSE Developed Markets ETF) and VTTVX (Vanguard Target Retirement 2025 Fund) are both funds - VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index, while VTTVX is a Diversified Portfolio fund managed by Vanguard. Over the past 10 years, VEA returned 10.14%/yr vs 7.70%/yr for VTTVX. Their correlation of 0.90 suggests significant overlap in exposure. VEA charges 0.03%/yr vs 0.08%/yr for VTTVX.

Performance

VEA vs. VTTVX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Developed Markets ETF (VEA) and Vanguard Target Retirement 2025 Fund (VTTVX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEA achieves a 12.02% return, which is significantly higher than VTTVX's 4.76% return. Over the past 10 years, VEA has outperformed VTTVX with an annualized return of 10.14%, while VTTVX has yielded a comparatively lower 7.70% annualized return.

VEA

• 1D: 1.00%
• 1M: -1.37%
• YTD: 12.02%
• 6M: 14.95%
• 1Y: 28.06%
• 3Y*: 18.65%
• 5Y*: 9.09%
• 10Y*: 10.14%

VTTVX

• 1D: -1.65%
• 1M: -0.62%
• YTD: 4.76%
• 6M: 5.37%
• 1Y: 14.39%
• 3Y*: 12.09%
• 5Y*: 5.60%
• 10Y*: 7.70%

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

VEA vs. VTTVX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEA Vanguard FTSE Developed Markets ETF	12.02%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%
VTTVX Vanguard Target Retirement 2025 Fund	4.76%	14.63%	9.23%	14.76%	-15.57%	9.78%	13.31%	19.63%	-5.14%	13.68%

Correlation

The correlation between VEA and VTTVX is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Jul 26, 2007	0.90

The correlation between VEA and VTTVX has been stable across timeframes, ranging from 0.87 to 0.91 - a consistent structural relationship.

VEA vs. VTTVX - Sectors Allocation Comparison

Sectors	VEA	VTTVX
Financial Services	23.3%	16.1%
Industrials	19.2%	12.3%
Technology	13.8%	27.4%
Healthcare	8.2%	8.3%
Basic Materials	7.5%	4.2%
Consumer Cyclical	7.5%	9.4%
Consumer Defensive	5.6%	4.8%
Energy	5.4%	4.3%
Communication Services	3.4%	8.0%
Utilities	3.3%	2.7%
Real Estate	2.7%	2.5%

Return for Risk

VEA vs. VTTVX — Risk / Return Rank

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

VEA

VEA Risk / Return Rank: 56
VEA Sharpe Ratio Rank: 57
VEA Sortino Ratio Rank: 55
VEA Omega Ratio Rank: 57
VEA Calmar Ratio Rank: 54
VEA Martin Ratio Rank: 58

VTTVX

VTTVX Risk / Return Rank: 54
VTTVX Sharpe Ratio Rank: 54
VTTVX Sortino Ratio Rank: 52
VTTVX Omega Ratio Rank: 56
VTTVX Calmar Ratio Rank: 51
VTTVX Martin Ratio Rank: 60

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.

VEA vs. VTTVX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) and Vanguard Target Retirement 2025 Fund (VTTVX). 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.

	VEA	VTTVX	Difference
Sharpe ratio: Return per unit of total volatility	1.75	2.08	-0.33
Sortino ratio: Return per unit of downside risk	2.39	2.93	-0.54
Omega ratio: Gain probability vs. loss probability	1.32	1.39	-0.08
Calmar ratio: Return relative to maximum drawdown	2.42	2.64	-0.21
Martin ratio: Return relative to average drawdown	9.39	11.48	-2.09
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEA vs. VTTVX - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 1.75, which is comparable to the VTTVX Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of VEA and VTTVX, 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

	VEA	VTTVX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.75	2.08	-0.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.55	0.62	-0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	0.78	-0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.56	-0.32

Drawdowns

VEA vs. VTTVX - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, which is greater than VTTVX's maximum drawdown of -46.03%. Use the drawdown chart below to compare losses from any high point for VEA and VTTVX.

Drawdown Indicators

	VEA	VTTVX	Difference
Max Drawdown Largest peak-to-trough decline	-60.68%	-46.03%	-14.65%
Max Drawdown (1Y) Largest decline over 1 year	-11.63%	-5.57%	-6.06%
Max Drawdown (3Y) Largest decline over 3 years	-13.45%	-7.84%	-5.61%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-21.52%	-8.19%
Max Drawdown (10Y) Largest decline over 10 years	-35.73%	-22.51%	-13.22%
Current Drawdown Current decline from peak	-3.40%	-1.92%	-1.48%
Average Drawdown Average peak-to-trough decline	-13.29%	-5.05%	-8.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.00%	1.28%	+1.72%

Volatility

VEA vs. VTTVX - Volatility Comparison

Vanguard FTSE Developed Markets ETF (VEA) has a higher volatility of 6.03% compared to Vanguard Target Retirement 2025 Fund (VTTVX) at 2.63%. This indicates that VEA's price experiences larger fluctuations and is considered to be riskier than VTTVX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEA	VTTVX	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.03%	2.63%	+3.40%
Volatility (6M) Calculated over the trailing 6-month period	13.91%	5.79%	+8.12%
Volatility (1Y) Calculated over the trailing 1-year period	16.15%	7.06%	+9.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.63%	9.11%	+7.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.40%	9.95%	+7.45%

VEA vs. VTTVX - Expense Ratio Comparison

VEA has a 0.03% expense ratio, which is lower than VTTVX's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VEA vs. VTTVX - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.69%, less than VTTVX's 7.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEA Vanguard FTSE Developed Markets ETF	2.69%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%
VTTVX Vanguard Target Retirement 2025 Fund	7.05%	7.38%	7.63%	3.96%	2.96%	16.28%	4.35%	2.57%	3.14%	0.47%	2.68%	4.98%

Frequently Asked Questions

Can I hold both VEA and VTTVX in my portfolio?

With a correlation of 0.91, VEA and VTTVX 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, VEA or VTTVX?

VEA has higher volatility (6.03%) compared to VTTVX (2.63%). In terms of maximum drawdown, VEA dropped -60.68% vs VTTVX's -46.03%.

Which has better risk-adjusted returns?

VTTVX currently has the higher Sharpe Ratio (2.08 vs 1.75), 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.