VFFVX vs. VBITX

Last updated Jul 17, 2026

VFFVX (Vanguard Target Retirement 2055 Fund) and VBITX (Vanguard Short-Term Bond Index Fund Institutional Shares) are both mutual funds - VFFVX is a Target Retirement Date fund managed by Vanguard, while VBITX is a Total Bond Market fund managed by Vanguard. Over the past 10 years, VFFVX returned 11.63%/yr vs 1.88%/yr for VBITX. At a correlation of -0.05, they often move in opposite directions. VFFVX charges 0.08%/yr vs 0.05%/yr for VBITX.

Performance

VFFVX vs. VBITX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Retirement 2055 Fund (VFFVX) and Vanguard Short-Term Bond Index Fund Institutional Shares (VBITX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFFVX achieves a 11.23% return, which is significantly higher than VBITX's 0.45% return. Over the past 10 years, VFFVX has outperformed VBITX with an annualized return of 11.63%, while VBITX has yielded a comparatively lower 1.88% annualized return.

VFFVX

• 1D: 0.41%
• 1M: -0.05%
• 6M: 8.33%
• YTD: 11.23%
• 1Y: 22.38%
• 3Y*: 17.66%
• 5Y*: 10.04%
• 10Y*: 11.63%

VBITX

• 1D: 0.20%
• 1M: 0.14%
• 6M: 0.65%
• YTD: 0.45%
• 1Y: 3.37%
• 3Y*: 4.44%
• 5Y*: 1.59%
• 10Y*: 1.88%

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

VFFVX vs. VBITX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFFVX Vanguard Target Retirement 2055 Fund	11.23%	21.44%	14.50%	20.39%	-17.48%	16.44%	16.33%	24.98%	-7.88%	21.39%
VBITX Vanguard Short-Term Bond Index Fund Institutional Shares	0.45%	6.11%	3.77%	4.43%	-5.61%	-1.18%	4.72%	4.89%	1.38%	1.20%

Correlation

The correlation between VFFVX and VBITX is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (5Y) Calculated over the trailing 5-year period	0.16
Correlation (10Y) Calculated over the trailing 10-year period	0.02
Correlation (All Time) Calculated using the full available price history since Sep 27, 2011	-0.05

The correlation between VFFVX and VBITX shifts across timeframes, from -0.05 (all time) to 0.29 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VFFVX vs. VBITX — 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: 71
VFFVX Sortino Ratio Rank: 67
VFFVX Omega Ratio Rank: 68
VFFVX Calmar Ratio Rank: 69
VFFVX Martin Ratio Rank: 77

VBITX

VBITX Risk / Return Rank: 54
VBITX Sharpe Ratio Rank: 49
VBITX Sortino Ratio Rank: 69
VBITX Omega Ratio Rank: 56
VBITX Calmar Ratio Rank: 56
VBITX Martin Ratio Rank: 40

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. VBITX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2055 Fund (VFFVX) and Vanguard Short-Term Bond Index Fund Institutional Shares (VBITX). 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.

	VFFVX	VBITX	Difference
Sharpe ratio: Return per unit of total volatility	1.86	1.58	+0.28
Sortino ratio: Return per unit of downside risk	2.56	2.61	-0.05
Omega ratio: Gain probability vs. loss probability	1.34	1.31	+0.03
Calmar ratio: Return relative to maximum drawdown	2.56	2.32	+0.24
Martin ratio: Return relative to average drawdown	10.89	6.95	+3.94

VFFVX vs. VBITX - Sharpe Ratio Comparison

The current VFFVX Sharpe Ratio is 1.86, which is comparable to the VBITX Sharpe Ratio of 1.58. The chart below compares the historical Sharpe Ratios of VFFVX and VBITX, 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

VFFVX vs. VBITX - Drawdown Comparison

The maximum VFFVX drawdown since its inception was -31.40%, which is greater than VBITX's maximum drawdown of -8.65%. Use the drawdown chart below to compare losses from any high point for VFFVX and VBITX.

Drawdown Indicators

	VFFVX	VBITX	Difference
Max Drawdown Largest peak-to-trough decline	-31.40%	-8.65%	-22.75%
Max Drawdown (1Y) Largest decline over 1 year	-8.93%	-1.54%	-7.39%
Max Drawdown (3Y) Largest decline over 3 years	-14.52%	-1.54%	-12.98%
Max Drawdown (5Y) Largest decline over 5 years	-25.39%	-8.61%	-16.78%
Max Drawdown (10Y) Largest decline over 10 years	-31.40%	-8.65%	-22.75%
Current Drawdown Current decline from peak	-0.84%	-0.49%	-0.35%
Average Drawdown Average peak-to-trough decline	-4.13%	-1.18%	-2.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.09%	0.52%	+1.57%

Volatility

VFFVX vs. VBITX - Volatility Comparison

Vanguard Target Retirement 2055 Fund (VFFVX) has a higher volatility of 3.82% compared to Vanguard Short-Term Bond Index Fund Institutional Shares (VBITX) at 0.66%. This indicates that VFFVX's price experiences larger fluctuations and is considered to be riskier than VBITX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFFVX	VBITX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.82%	0.66%	+3.16%
Volatility (6M) Calculated over the trailing 6-month period	10.31%	1.71%	+8.60%
Volatility (1Y) Calculated over the trailing 1-year period	12.33%	2.28%	+10.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.34%	2.97%	+11.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.05%	2.41%	+12.64%

VFFVX vs. VBITX - Expense Ratio Comparison

VFFVX has a 0.08% expense ratio, which is higher than VBITX's 0.05% expense ratio. However, 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. VBITX - Dividend Comparison

VFFVX's dividend yield for the trailing twelve months is around 1.87%, less than VBITX's 4.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBITX Vanguard Short-Term Bond Index Fund Institutional Shares	4.03%	3.85%	3.39%	1.99%	1.48%	1.24%	1.80%	2.26%	2.03%	1.69%	1.52%	1.44%
VFFVX Vanguard Target Retirement 2055 Fund	1.87%	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 VBITX in my portfolio?

VFFVX and VBITX have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFFVX or VBITX?

VFFVX has higher volatility (3.82%) compared to VBITX (0.66%). In terms of maximum drawdown, VFFVX dropped -31.40% vs VBITX's -8.65%.

Which has better risk-adjusted returns?

VFFVX currently has the higher Sharpe Ratio (1.86 vs 1.58), 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.