VFIFX vs. VOO

Last updated Jun 23, 2026

VFIFX (Vanguard Target Retirement 2050 Fund) and VOO (Vanguard S&P 500 ETF) are both funds - VFIFX is a Target Retirement Date fund managed by Vanguard, while VOO is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, VFIFX returned 11.75%/yr vs 15.77%/yr for VOO. With a 0.96 correlation, they move nearly in lockstep. VFIFX charges 0.08%/yr vs 0.03%/yr for VOO.

Performance

VFIFX vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Retirement 2050 Fund (VFIFX) and Vanguard S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFIFX achieves a 11.49% return, which is significantly higher than VOO's 9.75% return. Over the past 10 years, VFIFX has underperformed VOO with an annualized return of 11.75%, while VOO has yielded a comparatively higher 15.77% annualized return.

VFIFX

• 1D: 1.12%
• 1M: 1.69%
• YTD: 11.49%
• 6M: 11.33%
• 1Y: 27.52%
• 3Y*: 18.37%
• 5Y*: 10.41%
• 10Y*: 11.75%

VOO

• 1D: -0.29%
• 1M: 0.08%
• YTD: 9.75%
• 6M: 9.30%
• 1Y: 26.77%
• 3Y*: 21.36%
• 5Y*: 13.58%
• 10Y*: 15.77%

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

VFIFX vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFIFX Vanguard Target Retirement 2050 Fund	11.49%	21.42%	14.45%	20.39%	-17.48%	16.42%	16.40%	24.99%	-7.89%	19.15%
VOO Vanguard S&P 500 ETF	9.75%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	21.77%

Correlation

The correlation between VFIFX and VOO is 0.96 - 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	0.96
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 Sep 9, 2010	0.96

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

Return for Risk

VFIFX vs. VOO — Risk / Return Rank

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

VFIFX

VFIFX Risk / Return Rank: 70
VFIFX Sharpe Ratio Rank: 71
VFIFX Sortino Ratio Rank: 66
VFIFX Omega Ratio Rank: 67
VFIFX Calmar Ratio Rank: 69
VFIFX Martin Ratio Rank: 75

VOO

VOO Risk / Return Rank: 68
VOO Sharpe Ratio Rank: 70
VOO Sortino Ratio Rank: 67
VOO Omega Ratio Rank: 69
VOO Calmar Ratio Rank: 63
VOO Martin Ratio Rank: 74

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.

VFIFX vs. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2050 Fund (VFIFX) 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.

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.

	VFIFX	VOO	Difference
Sharpe ratio: Return per unit of total volatility	2.25	2.17	+0.08
Sortino ratio: Return per unit of downside risk	3.09	2.93	+0.15
Omega ratio: Gain probability vs. loss probability	1.41	1.39	+0.02
Calmar ratio: Return relative to maximum drawdown	3.06	3.02	+0.04
Martin ratio: Return relative to average drawdown	13.25	13.58	-0.33

VFIFX vs. VOO - Sharpe Ratio Comparison

The current VFIFX Sharpe Ratio is 2.25, which is comparable to the VOO Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of VFIFX and VOO, 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

VFIFX vs. VOO - Drawdown Comparison

The maximum VFIFX drawdown since its inception was -51.68%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for VFIFX and VOO.

Drawdown Indicators

	VFIFX	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-51.68%	-33.99%	-17.69%
Max Drawdown (1Y) Largest decline over 1 year	-8.87%	-8.90%	+0.03%
Max Drawdown (3Y) Largest decline over 3 years	-14.54%	-18.69%	+4.15%
Max Drawdown (5Y) Largest decline over 5 years	-25.40%	-24.52%	-0.88%
Max Drawdown (10Y) Largest decline over 10 years	-31.36%	-33.99%	+2.63%
Current Drawdown Current decline from peak	-0.51%	-1.74%	+1.23%
Average Drawdown Average peak-to-trough decline	-6.87%	-3.68%	-3.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.04%	1.98%	+0.06%

Volatility

VFIFX vs. VOO - Volatility Comparison

Vanguard Target Retirement 2050 Fund (VFIFX) has a higher volatility of 4.86% compared to Vanguard S&P 500 ETF (VOO) at 4.60%. This indicates that VFIFX's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFIFX	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.86%	4.60%	+0.26%
Volatility (6M) Calculated over the trailing 6-month period	9.97%	9.73%	+0.24%
Volatility (1Y) Calculated over the trailing 1-year period	12.06%	12.39%	-0.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.29%	16.90%	-2.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.15%	18.05%	-2.90%

VFIFX vs. VOO - Expense Ratio Comparison

VFIFX has a 0.08% expense ratio, which is higher than VOO's 0.03% 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

VFIFX vs. VOO - Dividend Comparison

VFIFX's dividend yield for the trailing twelve months is around 1.87%, more than VOO's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFIFX Vanguard Target Retirement 2050 Fund	1.87%	2.09%	2.26%	2.21%	2.38%	12.83%	1.84%	2.20%	2.51%	0.03%	2.04%	2.36%
VOO Vanguard S&P 500 ETF	1.04%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both VFIFX and VOO in my portfolio?

With a correlation of 0.96, VFIFX and VOO 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, VFIFX or VOO?

VFIFX has higher volatility (4.86%) compared to VOO (4.60%). In terms of maximum drawdown, VFIFX dropped -51.68% vs VOO's -33.99%.

Which has better risk-adjusted returns?

VFIFX currently has the higher Sharpe Ratio (2.25 vs 2.17), 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.