VFIFX vs. VWALX

Last updated Jul 14, 2026

VFIFX (Vanguard Target Retirement 2050 Fund) and VWALX (Vanguard High-Yield Tax-Exempt Fund Admiral Shares) are both mutual funds - VFIFX is a Target Retirement Date fund managed by Vanguard, while VWALX is a High Yield Muni fund actively managed by Vanguard. Over the past 10 years, VFIFX returned 11.47%/yr vs 3.00%/yr for VWALX. At a correlation of -0.07, they often move in opposite directions. VFIFX charges 0.08%/yr vs 0.09%/yr for VWALX.

Performance

VFIFX vs. VWALX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Retirement 2050 Fund (VFIFX) and Vanguard High-Yield Tax-Exempt Fund Admiral Shares (VWALX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFIFX achieves a 11.27% return, which is significantly higher than VWALX's 2.78% return. Over the past 10 years, VFIFX has outperformed VWALX with an annualized return of 11.47%, while VWALX has yielded a comparatively lower 3.00% annualized return.

VFIFX

• 1D: 0.30%
• 1M: 0.98%
• 6M: 8.31%
• YTD: 11.27%
• 1Y: 22.36%
• 3Y*: 18.38%
• 5Y*: 9.77%
• 10Y*: 11.47%

VWALX

• 1D: 0.00%
• 1M: 0.54%
• 6M: 2.40%
• YTD: 2.78%
• 1Y: 8.54%
• 3Y*: 5.60%
• 5Y*: 1.50%
• 10Y*: 3.00%

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

VFIFX vs. VWALX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFIFX Vanguard Target Retirement 2050 Fund	11.27%	21.42%	14.45%	20.39%	-17.48%	16.42%	16.40%	24.99%	-7.89%	19.15%
VWALX Vanguard High-Yield Tax-Exempt Fund Admiral Shares	2.78%	5.06%	4.08%	8.45%	-11.69%	3.42%	5.49%	9.58%	1.38%	7.96%

Correlation

The correlation between VFIFX and VWALX is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.26
Correlation (3Y) Calculated over the trailing 3-year period	0.20
Correlation (5Y) Calculated over the trailing 5-year period	0.16
Correlation (10Y) Calculated over the trailing 10-year period	0.06
Correlation (All Time) Calculated using the full available price history since Jun 7, 2006	-0.07

The correlation between VFIFX and VWALX shifts across timeframes, from -0.07 (all time) to 0.26 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VFIFX vs. VWALX — Risk / Return Rank

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

VFIFX

VFIFX Risk / Return Rank: 65
VFIFX Sharpe Ratio Rank: 65
VFIFX Sortino Ratio Rank: 62
VFIFX Omega Ratio Rank: 63
VFIFX Calmar Ratio Rank: 64
VFIFX Martin Ratio Rank: 72

VWALX

VWALX Risk / Return Rank: 86
VWALX Sharpe Ratio Rank: 93
VWALX Sortino Ratio Rank: 94
VWALX Omega Ratio Rank: 95
VWALX Calmar Ratio Rank: 76
VWALX Martin Ratio Rank: 70

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. VWALX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2050 Fund (VFIFX) and Vanguard High-Yield Tax-Exempt Fund Admiral Shares (VWALX). 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	VWALX	Difference
Sharpe ratio: Return per unit of total volatility	1.79	2.59	-0.80
Sortino ratio: Return per unit of downside risk	2.48	4.14	-1.66
Omega ratio: Gain probability vs. loss probability	1.33	1.65	-0.32
Calmar ratio: Return relative to maximum drawdown	2.46	2.74	-0.28
Martin ratio: Return relative to average drawdown	10.50	10.32	+0.17

VFIFX vs. VWALX - Sharpe Ratio Comparison

The current VFIFX Sharpe Ratio is 1.79, which is lower than the VWALX Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of VFIFX and VWALX, 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. VWALX - Drawdown Comparison

The maximum VFIFX drawdown since its inception was -51.68%, which is greater than VWALX's maximum drawdown of -17.24%. Use the drawdown chart below to compare losses from any high point for VFIFX and VWALX.

Drawdown Indicators

	VFIFX	VWALX	Difference
Max Drawdown Largest peak-to-trough decline	-51.68%	-17.24%	-34.44%
Max Drawdown (1Y) Largest decline over 1 year	-8.87%	-3.05%	-5.82%
Max Drawdown (3Y) Largest decline over 3 years	-14.54%	-7.10%	-7.44%
Max Drawdown (5Y) Largest decline over 5 years	-25.40%	-17.24%	-8.16%
Max Drawdown (10Y) Largest decline over 10 years	-31.36%	-17.24%	-14.12%
Current Drawdown Current decline from peak	-0.71%	-0.56%	-0.15%
Average Drawdown Average peak-to-trough decline	-6.85%	-2.16%	-4.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.08%	0.82%	+1.26%

Volatility

VFIFX vs. VWALX - Volatility Comparison

Vanguard Target Retirement 2050 Fund (VFIFX) has a higher volatility of 4.48% compared to Vanguard High-Yield Tax-Exempt Fund Admiral Shares (VWALX) at 0.66%. This indicates that VFIFX's price experiences larger fluctuations and is considered to be riskier than VWALX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFIFX	VWALX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.48%	0.66%	+3.82%
Volatility (6M) Calculated over the trailing 6-month period	10.19%	2.43%	+7.76%
Volatility (1Y) Calculated over the trailing 1-year period	12.21%	3.23%	+8.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.32%	4.81%	+9.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.06%	4.63%	+10.43%

VFIFX vs. VWALX - Expense Ratio Comparison

VFIFX has a 0.08% expense ratio, which is lower than VWALX'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

VFIFX vs. VWALX - Dividend Comparison

VFIFX's dividend yield for the trailing twelve months is around 1.88%, less than VWALX's 4.14% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFIFX Vanguard Target Retirement 2050 Fund	1.88%	2.09%	2.26%	2.21%	2.38%	12.83%	1.84%	2.20%	2.51%	0.03%	2.04%	2.36%
VWALX Vanguard High-Yield Tax-Exempt Fund Admiral Shares	4.14%	5.04%	4.47%	3.59%	3.44%	3.04%	3.40%	4.03%	3.85%	3.77%	3.86%	3.75%

Frequently Asked Questions

Can I hold both VFIFX and VWALX in my portfolio?

VFIFX and VWALX have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFIFX or VWALX?

VFIFX has higher volatility (4.48%) compared to VWALX (0.66%). In terms of maximum drawdown, VFIFX dropped -51.68% vs VWALX's -17.24%.

Which has better risk-adjusted returns?

VWALX currently has the higher Sharpe Ratio (2.59 vs 1.79), 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.