VFFVX vs. SPY

Last updated Jun 7, 2026

VFFVX (Vanguard Target Retirement 2055 Fund) and SPY (State Street SPDR S&P 500 ETF) are both funds - VFFVX is a Target Retirement Date fund managed by Vanguard, while SPY is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, VFFVX returned 11.86%/yr vs 15.16%/yr for SPY. With a 0.96 correlation, they move nearly in lockstep. VFFVX charges 0.08%/yr vs 0.09%/yr for SPY.

Performance

VFFVX vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Retirement 2055 Fund (VFFVX) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFFVX achieves a 11.68% return, which is significantly higher than SPY's 8.45% return. Over the past 10 years, VFFVX has underperformed SPY with an annualized return of 11.86%, while SPY has yielded a comparatively higher 15.16% annualized return.

VFFVX

• 1D: 0.29%
• 1M: 2.03%
• YTD: 11.68%
• 6M: 12.27%
• 1Y: 26.83%
• 3Y*: 19.65%
• 5Y*: 10.11%
• 10Y*: 11.86%

SPY

• 1D: -2.58%
• 1M: -0.01%
• YTD: 8.45%
• 6M: 8.18%
• 1Y: 24.51%
• 3Y*: 21.43%
• 5Y*: 13.32%
• 10Y*: 15.16%

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

VFFVX vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFFVX Vanguard Target Retirement 2055 Fund	11.68%	21.44%	14.50%	20.39%	-17.48%	16.44%	16.33%	24.98%	-7.88%	21.39%
SPY State Street SPDR S&P 500 ETF	8.45%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between VFFVX and SPY is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Aug 19, 2010	0.96

The correlation between VFFVX and SPY has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

VFFVX vs. SPY - Sectors Allocation Comparison

Sectors	VFFVX	SPY
Technology	27.3%	35.9%
Financial Services	16.1%	11.8%
Industrials	12.4%	7.8%
Consumer Cyclical	9.4%	10.3%
Healthcare	8.3%	8.4%
Communication Services	8.0%	11.3%
Consumer Defensive	4.8%	4.8%
Energy	4.3%	3.6%
Basic Materials	4.3%	1.8%
Utilities	2.7%	2.4%
Real Estate	2.5%	1.9%

Return for Risk

VFFVX vs. SPY — Risk / Return Rank

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

VFFVX

VFFVX Risk / Return Rank: 70
VFFVX Sharpe Ratio Rank: 72
VFFVX Sortino Ratio Rank: 68
VFFVX Omega Ratio Rank: 67
VFFVX Calmar Ratio Rank: 69
VFFVX Martin Ratio Rank: 76

SPY

SPY Risk / Return Rank: 66
SPY Sharpe Ratio Rank: 66
SPY Sortino Ratio Rank: 63
SPY Omega Ratio Rank: 66
SPY Calmar Ratio Rank: 60
SPY 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.

VFFVX vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2055 Fund (VFFVX) and State Street SPDR S&P 500 ETF (SPY). 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.

	VFFVX	SPY	Difference
Sharpe ratio: Return per unit of total volatility	2.40	2.14	+0.26
Sortino ratio: Return per unit of downside risk	3.33	2.88	+0.45
Omega ratio: Gain probability vs. loss probability	1.44	1.39	+0.05
Calmar ratio: Return relative to maximum drawdown	3.08	2.92	+0.16
Martin ratio: Return relative to average drawdown	13.66	13.50	+0.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFFVX vs. SPY - Sharpe Ratio Comparison

The current VFFVX Sharpe Ratio is 2.40, which is comparable to the SPY Sharpe Ratio of 2.14. The chart below compares the historical Sharpe Ratios of VFFVX and SPY, 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

	VFFVX	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.40	2.14	+0.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.72	0.78	-0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.79	0.85	-0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.77	0.58	+0.18

Drawdowns

VFFVX vs. SPY - Drawdown Comparison

The maximum VFFVX drawdown since its inception was -31.40%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VFFVX and SPY.

Drawdown Indicators

	VFFVX	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-31.40%	-55.19%	+23.79%
Max Drawdown (1Y) Largest decline over 1 year	-8.93%	-8.88%	-0.05%
Max Drawdown (3Y) Largest decline over 3 years	-14.52%	-18.76%	+4.24%
Max Drawdown (5Y) Largest decline over 5 years	-25.39%	-24.50%	-0.89%
Max Drawdown (10Y) Largest decline over 10 years	-31.40%	-33.72%	+2.32%
Current Drawdown Current decline from peak	-0.43%	-2.90%	+2.47%
Average Drawdown Average peak-to-trough decline	-4.14%	-9.05%	+4.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.01%	1.91%	+0.10%

Volatility

VFFVX vs. SPY - Volatility Comparison

The current volatility for Vanguard Target Retirement 2055 Fund (VFFVX) is 3.38%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 3.73%. This indicates that VFFVX experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFFVX	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.38%	3.73%	-0.35%
Volatility (6M) Calculated over the trailing 6-month period	9.10%	9.31%	-0.21%
Volatility (1Y) Calculated over the trailing 1-year period	11.44%	12.12%	-0.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.18%	17.09%	-2.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.10%	17.95%	-2.85%

VFFVX vs. SPY - Expense Ratio Comparison

VFFVX has a 0.08% expense ratio, which is lower than SPY's 0.09% 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

VFFVX vs. SPY - Dividend Comparison

VFFVX's dividend yield for the trailing twelve months is around 1.86%, more than SPY's 1.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.00%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
VFFVX Vanguard Target Retirement 2055 Fund	1.86%	2.08%	2.31%	2.18%	2.19%	10.03%	1.82%	2.15%	2.35%	1.83%	1.99%	1.98%

Frequently Asked Questions

Can I hold both VFFVX and SPY in my portfolio?

With a correlation of 0.95, VFFVX and SPY 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, VFFVX or SPY?

SPY has higher volatility (3.73%) compared to VFFVX (3.38%). In terms of maximum drawdown, VFFVX dropped -31.40% vs SPY's -55.19%.

Which has better risk-adjusted returns?

VFFVX currently has the higher Sharpe Ratio (2.40 vs 2.14), 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.