VFORX vs. LTTIX
VFORX (Vanguard Target Retirement 2040 Fund) and LTTIX (MFS Lifetime 2025 Fund) are both Target Retirement Date funds. Over the past 10 years, VFORX returned 10.97%/yr vs 6.24%/yr for LTTIX. Their correlation of 0.93 suggests significant overlap in exposure. VFORX charges 0.08%/yr vs 0.00%/yr for LTTIX.
Performance
VFORX vs. LTTIX - Performance Comparison
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Returns By Period
In the year-to-date period, VFORX achieves a 9.51% return, which is significantly higher than LTTIX's 2.74% return. Over the past 10 years, VFORX has outperformed LTTIX with an annualized return of 10.97%, while LTTIX has yielded a comparatively lower 6.24% annualized return.
VFORX
- 1D
- -0.15%
- 1M
- 1.41%
- YTD
- 9.51%
- 6M
- 9.03%
- 1Y
- 22.39%
- 3Y*
- 16.82%
- 5Y*
- 8.64%
- 10Y*
- 10.97%
LTTIX
- 1D
- 0.00%
- 1M
- 0.08%
- YTD
- 2.74%
- 6M
- 2.59%
- 1Y
- 8.04%
- 3Y*
- 8.33%
- 5Y*
- 3.72%
- 10Y*
- 6.24%
VFORX vs. LTTIX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VFORX Vanguard Target Retirement 2040 Fund | 9.51% | 18.77% | 12.90% | 18.56% | -17.00% | 14.55% | 15.48% | 23.86% | -7.32% | 18.45% |
LTTIX MFS Lifetime 2025 Fund | 2.74% | 9.29% | 6.73% | 10.36% | -12.36% | 8.61% | 10.61% | 17.82% | -3.97% | 13.16% |
Correlation
The correlation between VFORX and LTTIX is 0.84, 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 | 0.84 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.85 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.89 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.92 |
Correlation (All Time) Calculated using the full available price history since Jan 2, 2013 | 0.93 |
The correlation between VFORX and LTTIX has been stable across timeframes, ranging from 0.84 to 0.93 - a consistent structural relationship.
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Return for Risk
VFORX vs. LTTIX — Risk / Return Rank
VFORX
LTTIX
VFORX vs. LTTIX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2040 Fund (VFORX) and MFS Lifetime 2025 Fund (LTTIX). 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 | LTTIX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.11 | ||
| Sortino ratioReturn per unit of downside risk | -0.06 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 1.42 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 3.02 | 2.47 | +0.55 |
| Martin ratioReturn relative to average drawdown | 13.04 | 10.68 | +2.35 |
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Drawdowns
VFORX vs. LTTIX - Drawdown Comparison
The maximum VFORX drawdown since its inception was -51.63%, which is greater than LTTIX's maximum drawdown of -19.33%. Use the drawdown chart below to compare losses from any high point for VFORX and LTTIX.
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Drawdown Indicators
| VFORX | LTTIX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -51.63% | -19.33% | -32.30% |
Max Drawdown (1Y)Largest decline over 1 year | -7.70% | -3.64% | -4.06% |
Max Drawdown (3Y)Largest decline over 3 years | -12.12% | -5.77% | -6.35% |
Max Drawdown (5Y)Largest decline over 5 years | -24.32% | -16.92% | -7.40% |
Max Drawdown (10Y)Largest decline over 10 years | -29.35% | -19.33% | -10.02% |
Current DrawdownCurrent decline from peak | -0.55% | -0.45% | -0.10% |
Average DrawdownAverage peak-to-trough decline | -6.76% | -2.68% | -4.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.78% | 0.84% | +0.94% |
Volatility
VFORX vs. LTTIX - Volatility Comparison
Vanguard Target Retirement 2040 Fund (VFORX) has a higher volatility of 4.07% compared to MFS Lifetime 2025 Fund (LTTIX) at 1.34%. This indicates that VFORX's price experiences larger fluctuations and is considered to be riskier than LTTIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VFORX | LTTIX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.07% | 1.34% | +2.73% |
Volatility (6M)Calculated over the trailing 6-month period | 8.54% | 3.32% | +5.22% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.32% | 4.18% | +6.14% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.52% | 6.37% | +6.15% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 13.70% | 7.24% | +6.46% |
VFORX vs. LTTIX - Expense Ratio Comparison
VFORX has a 0.08% expense ratio, which is higher than LTTIX's 0.00% 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
VFORX vs. LTTIX - Dividend Comparison
VFORX's dividend yield for the trailing twelve months is around 2.53%, less than LTTIX's 11.54% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LTTIX MFS Lifetime 2025 Fund | 11.54% | 8.13% | 7.07% | 3.30% | 5.88% | 7.35% | 2.83% | 3.68% | 4.32% | 3.51% | 4.03% | 1.82% |
VFORX Vanguard Target Retirement 2040 Fund | 2.53% | 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
VFORX and LTTIX have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VFORX has higher volatility (4.07%) compared to LTTIX (1.34%). In terms of maximum drawdown, VFORX dropped -51.63% vs LTTIX's -19.33%.
VFORX currently has the higher Sharpe Ratio (2.26 vs 2.16), 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.
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