VFORX vs. FAGIX

Last updated Jun 13, 2026

VFORX (Vanguard Target Retirement 2040 Fund) and FAGIX (Fidelity Capital & Income Fund) are both mutual funds - VFORX is a Target Retirement Date fund managed by Vanguard, while FAGIX is a High Yield Bonds fund actively managed by Fidelity. Over the past 10 years, VFORX returned 10.63%/yr vs 8.03%/yr for FAGIX. A 0.74 correlation means they provide meaningful diversification when combined. VFORX charges 0.08%/yr vs 0.67%/yr for FAGIX.

Performance

VFORX vs. FAGIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Retirement 2040 Fund (VFORX) and Fidelity Capital & Income Fund (FAGIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFORX achieves a 8.11% return, which is significantly higher than FAGIX's 7.40% return. Over the past 10 years, VFORX has outperformed FAGIX with an annualized return of 10.63%, while FAGIX has yielded a comparatively lower 8.03% annualized return.

VFORX

• 1D: 1.91%
• 1M: 0.13%
• YTD: 8.11%
• 6M: 8.81%
• 1Y: 19.96%
• 3Y*: 16.17%
• 5Y*: 8.20%
• 10Y*: 10.63%

FAGIX

• 1D: 1.15%
• 1M: 0.25%
• YTD: 7.40%
• 6M: 7.95%
• 1Y: 16.73%
• 3Y*: 12.87%
• 5Y*: 6.75%
• 10Y*: 8.03%

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

VFORX vs. FAGIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFORX Vanguard Target Retirement 2040 Fund	8.11%	18.77%	12.90%	18.56%	-17.00%	14.55%	15.48%	23.86%	-7.32%	18.45%
FAGIX Fidelity Capital & Income Fund	7.40%	12.38%	10.69%	13.02%	-11.50%	11.13%	9.95%	18.96%	-7.17%	11.66%

Correlation

The correlation between VFORX and FAGIX is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since Jun 7, 2006	0.74

The correlation between VFORX and FAGIX shifts across timeframes, from 0.74 (all time) to 0.85 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VFORX vs. FAGIX — Risk / Return Rank

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

VFORX

VFORX Risk / Return Rank: 73
VFORX Sharpe Ratio Rank: 73
VFORX Sortino Ratio Rank: 71
VFORX Omega Ratio Rank: 72
VFORX Calmar Ratio Rank: 71
VFORX Martin Ratio Rank: 79

FAGIX

FAGIX Risk / Return Rank: 91
FAGIX Sharpe Ratio Rank: 91
FAGIX Sortino Ratio Rank: 88
FAGIX Omega Ratio Rank: 87
FAGIX Calmar Ratio Rank: 95
FAGIX Martin Ratio Rank: 96

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.

VFORX vs. FAGIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2040 Fund (VFORX) and Fidelity Capital & Income Fund (FAGIX). 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.

	VFORX	FAGIX	Difference
Sharpe ratio: Return per unit of total volatility	2.00	2.63	-0.63
Sortino ratio: Return per unit of downside risk	2.78	3.75	-0.97
Omega ratio: Gain probability vs. loss probability	1.37	1.52	-0.15
Calmar ratio: Return relative to maximum drawdown	2.67	4.85	-2.18
Martin ratio: Return relative to average drawdown	11.49	19.86	-8.37

VFORX vs. FAGIX - Sharpe Ratio Comparison

The current VFORX Sharpe Ratio is 2.00, which is comparable to the FAGIX Sharpe Ratio of 2.63. The chart below compares the historical Sharpe Ratios of VFORX and FAGIX, 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

VFORX vs. FAGIX - Drawdown Comparison

The maximum VFORX drawdown since its inception was -51.63%, which is greater than FAGIX's maximum drawdown of -37.97%. Use the drawdown chart below to compare losses from any high point for VFORX and FAGIX.

Drawdown Indicators

	VFORX	FAGIX	Difference
Max Drawdown Largest peak-to-trough decline	-51.63%	-37.97%	-13.66%
Max Drawdown (1Y) Largest decline over 1 year	-7.70%	-3.49%	-4.21%
Max Drawdown (3Y) Largest decline over 3 years	-12.12%	-7.26%	-4.86%
Max Drawdown (5Y) Largest decline over 5 years	-24.32%	-15.42%	-8.90%
Max Drawdown (10Y) Largest decline over 10 years	-29.35%	-28.45%	-0.90%
Current Drawdown Current decline from peak	-1.82%	-1.04%	-0.78%
Average Drawdown Average peak-to-trough decline	-6.77%	-6.98%	+0.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.78%	0.85%	+0.93%

Volatility

VFORX vs. FAGIX - Volatility Comparison

Vanguard Target Retirement 2040 Fund (VFORX) has a higher volatility of 4.19% compared to Fidelity Capital & Income Fund (FAGIX) at 2.71%. This indicates that VFORX's price experiences larger fluctuations and is considered to be riskier than FAGIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFORX	FAGIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.19%	2.71%	+1.48%
Volatility (6M) Calculated over the trailing 6-month period	8.47%	5.30%	+3.17%
Volatility (1Y) Calculated over the trailing 1-year period	10.27%	6.42%	+3.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.51%	6.66%	+5.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.70%	7.84%	+5.86%

VFORX vs. FAGIX - Expense Ratio Comparison

VFORX has a 0.08% expense ratio, which is lower than FAGIX's 0.67% expense ratio.

Dividends

VFORX vs. FAGIX - Dividend Comparison

VFORX's dividend yield for the trailing twelve months is around 2.56%, less than FAGIX's 4.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FAGIX Fidelity Capital & Income Fund	4.47%	4.74%	5.02%	5.28%	10.25%	6.08%	4.59%	5.00%	5.67%	5.05%	4.57%	4.51%
VFORX Vanguard Target Retirement 2040 Fund	2.56%	2.77%	2.86%	2.38%	2.60%	20.68%	2.06%	2.28%	2.58%	0.04%	2.40%	2.99%

Frequently Asked Questions

Can I hold both VFORX and FAGIX in my portfolio?

VFORX and FAGIX have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFORX or FAGIX?

VFORX has higher volatility (4.19%) compared to FAGIX (2.71%). In terms of maximum drawdown, VFORX dropped -51.63% vs FAGIX's -37.97%.

Which has better risk-adjusted returns?

FAGIX currently has the higher Sharpe Ratio (2.63 vs 2.00), 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.