VFORX vs. SCHD
Compare and contrast key facts about Vanguard Target Retirement 2040 Fund (VFORX) and Schwab U.S. Dividend Equity ETF (SCHD).
VFORX is managed by Vanguard. It was launched on Jun 7, 2006. SCHD is a passively managed fund by Charles Schwab that tracks the performance of the Dow Jones U.S. Dividend 100 Index. It was launched on Oct 20, 2011.
Performance
VFORX vs. SCHD - Performance Comparison
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VFORX vs. SCHD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VFORX Vanguard Target Retirement 2040 Fund | -3.32% | 18.77% | 12.90% | 18.56% | -17.00% | 14.55% | 15.48% | 23.86% | -7.32% | 18.45% |
SCHD Schwab U.S. Dividend Equity ETF | 12.79% | 4.34% | 11.66% | 4.54% | -3.26% | 29.87% | 15.03% | 27.29% | -5.56% | 20.85% |
Returns By Period
In the year-to-date period, VFORX achieves a -3.32% return, which is significantly lower than SCHD's 12.79% return. Over the past 10 years, VFORX has underperformed SCHD with an annualized return of 9.48%, while SCHD has yielded a comparatively higher 12.31% annualized return.
VFORX
- 1D
- -0.14%
- 1M
- -7.37%
- YTD
- -3.32%
- 6M
- -0.71%
- 1Y
- 15.06%
- 3Y*
- 13.11%
- 5Y*
- 7.08%
- 10Y*
- 9.48%
SCHD
- 1D
- 0.66%
- 1M
- -2.61%
- YTD
- 12.79%
- 6M
- 14.49%
- 1Y
- 13.97%
- 3Y*
- 12.05%
- 5Y*
- 8.44%
- 10Y*
- 12.31%
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VFORX vs. SCHD - Expense Ratio Comparison
VFORX has a 0.08% expense ratio, which is higher than SCHD's 0.06% 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%.
Return for Risk
VFORX vs. SCHD — Risk / Return Rank
VFORX
SCHD
VFORX vs. SCHD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2040 Fund (VFORX) and Schwab U.S. Dividend Equity ETF (SCHD). 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.
| VFORX | SCHD | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.22 | 0.89 | +0.33 |
Sortino ratioReturn per unit of downside risk | 1.76 | 1.35 | +0.41 |
Omega ratioGain probability vs. loss probability | 1.26 | 1.19 | +0.07 |
Calmar ratioReturn relative to maximum drawdown | 1.55 | 1.19 | +0.36 |
Martin ratioReturn relative to average drawdown | 7.04 | 3.99 | +3.05 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VFORX | SCHD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.22 | 0.89 | +0.33 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.58 | 0.59 | -0.01 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.70 | 0.74 | -0.04 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.46 | 0.84 | -0.38 |
Correlation
The correlation between VFORX and SCHD is 0.82, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Dividends
VFORX vs. SCHD - Dividend Comparison
VFORX's dividend yield for the trailing twelve months is around 2.86%, less than SCHD's 3.44% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFORX Vanguard Target Retirement 2040 Fund | 2.86% | 2.77% | 2.86% | 2.38% | 2.60% | 20.68% | 2.06% | 2.28% | 2.58% | 0.04% | 2.40% | 2.99% |
SCHD Schwab U.S. Dividend Equity ETF | 3.44% | 3.82% | 3.64% | 3.49% | 3.39% | 2.78% | 3.16% | 2.98% | 3.06% | 2.63% | 2.89% | 2.97% |
Drawdowns
VFORX vs. SCHD - Drawdown Comparison
The maximum VFORX drawdown since its inception was -51.63%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for VFORX and SCHD.
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Drawdown Indicators
| VFORX | SCHD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -51.63% | -33.37% | -18.26% |
Max Drawdown (1Y)Largest decline over 1 year | -8.88% | -12.74% | +3.86% |
Max Drawdown (5Y)Largest decline over 5 years | -24.32% | -16.85% | -7.47% |
Max Drawdown (10Y)Largest decline over 10 years | -29.35% | -33.37% | +4.02% |
Current DrawdownCurrent decline from peak | -7.70% | -2.89% | -4.81% |
Average DrawdownAverage peak-to-trough decline | -6.82% | -3.34% | -3.48% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.96% | 3.89% | -1.93% |
Volatility
VFORX vs. SCHD - Volatility Comparison
Vanguard Target Retirement 2040 Fund (VFORX) has a higher volatility of 4.11% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 2.40%. This indicates that VFORX's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VFORX | SCHD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.11% | 2.40% | +1.71% |
Volatility (6M)Calculated over the trailing 6-month period | 7.24% | 7.96% | -0.72% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.42% | 15.74% | -3.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.35% | 14.40% | -2.05% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 13.64% | 16.70% | -3.06% |