VFORX vs. VASGX

Last updated Jun 23, 2026

VFORX (Vanguard Target Retirement 2040 Fund) and VASGX (Vanguard LifeStrategy Growth Fund) are both mutual funds - VFORX is a Target Retirement Date fund managed by Vanguard, while VASGX is a Diversified Portfolio fund actively managed by Vanguard. Over the past 10 years, VFORX returned 10.68%/yr vs 10.80%/yr for VASGX. With a 1.00 correlation, they move nearly in lockstep. VFORX charges 0.08%/yr vs 0.14%/yr for VASGX.

Performance

VFORX vs. VASGX - Performance Comparison

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

Returns By Period

In the year-to-date period, VFORX achieves a 9.67% return, which is significantly lower than VASGX's 10.37% return. Both investments have delivered pretty close results over the past 10 years, with VFORX having a 10.68% annualized return and VASGX not far ahead at 10.80%.

VFORX

• 1D: 0.96%
• 1M: 1.56%
• YTD: 9.67%
• 6M: 9.59%
• 1Y: 23.37%
• 3Y*: 16.19%
• 5Y*: 8.91%
• 10Y*: 10.68%

VASGX

• 1D: 1.03%
• 1M: 1.62%
• YTD: 10.37%
• 6M: 10.24%
• 1Y: 24.85%
• 3Y*: 16.74%
• 5Y*: 9.20%
• 10Y*: 10.80%

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

VFORX vs. VASGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFORX Vanguard Target Retirement 2040 Fund	9.67%	18.77%	12.90%	18.56%	-17.00%	14.55%	15.48%	23.86%	-7.32%	18.45%
VASGX Vanguard LifeStrategy Growth Fund	10.37%	19.65%	12.95%	18.76%	-17.21%	14.35%	15.45%	23.14%	-6.89%	19.21%

Correlation

The correlation between VFORX and VASGX is 1.00 - 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	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Jun 7, 2006	1.00

The correlation between VFORX and VASGX has been stable across timeframes, ranging from 1.00 to 1.00 - a consistent structural relationship.

Return for Risk

VFORX vs. VASGX — Risk / Return Rank

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

VFORX

VFORX Risk / Return Rank: 69
VFORX Sharpe Ratio Rank: 70
VFORX Sortino Ratio Rank: 67
VFORX Omega Ratio Rank: 68
VFORX Calmar Ratio Rank: 66
VFORX Martin Ratio Rank: 73

VASGX

VASGX Risk / Return Rank: 68
VASGX Sharpe Ratio Rank: 70
VASGX Sortino Ratio Rank: 66
VASGX Omega Ratio Rank: 66
VASGX Calmar Ratio Rank: 67
VASGX Martin Ratio Rank: 73

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. VASGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2040 Fund (VFORX) and Vanguard LifeStrategy Growth Fund (VASGX). 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	VASGX	Difference
Sharpe ratio: Return per unit of total volatility	2.24	2.23	+0.01
Sortino ratio: Return per unit of downside risk	3.11	3.09	+0.02
Omega ratio: Gain probability vs. loss probability	1.42	1.41	0.00
Calmar ratio: Return relative to maximum drawdown	2.99	3.00	-0.01
Martin ratio: Return relative to average drawdown	12.91	12.96	-0.05

VFORX vs. VASGX - Sharpe Ratio Comparison

The current VFORX Sharpe Ratio is 2.24, which is comparable to the VASGX Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of VFORX and VASGX, 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. VASGX - Drawdown Comparison

The maximum VFORX drawdown since its inception was -51.63%, roughly equal to the maximum VASGX drawdown of -51.16%. Use the drawdown chart below to compare losses from any high point for VFORX and VASGX.

Drawdown Indicators

	VFORX	VASGX	Difference
Max Drawdown Largest peak-to-trough decline	-51.63%	-51.16%	-0.47%
Max Drawdown (1Y) Largest decline over 1 year	-7.70%	-8.17%	+0.47%
Max Drawdown (3Y) Largest decline over 3 years	-12.12%	-12.89%	+0.77%
Max Drawdown (5Y) Largest decline over 5 years	-24.32%	-24.43%	+0.11%
Max Drawdown (10Y) Largest decline over 10 years	-29.35%	-28.53%	-0.82%
Current Drawdown Current decline from peak	-0.40%	-0.44%	+0.04%
Average Drawdown Average peak-to-trough decline	-6.76%	-7.24%	+0.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.78%	1.89%	-0.11%

Volatility

VFORX vs. VASGX - Volatility Comparison

The current volatility for Vanguard Target Retirement 2040 Fund (VFORX) is 4.17%, while Vanguard LifeStrategy Growth Fund (VASGX) has a volatility of 4.47%. This indicates that VFORX experiences smaller price fluctuations and is considered to be less risky than VASGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFORX	VASGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.17%	4.47%	-0.30%
Volatility (6M) Calculated over the trailing 6-month period	8.57%	9.14%	-0.57%
Volatility (1Y) Calculated over the trailing 1-year period	10.31%	10.99%	-0.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.52%	12.88%	-0.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.71%	13.53%	+0.18%

VFORX vs. VASGX - Expense Ratio Comparison

VFORX has a 0.08% expense ratio, which is lower than VASGX's 0.14% 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

VFORX vs. VASGX - Dividend Comparison

VFORX's dividend yield for the trailing twelve months is around 2.52%, less than VASGX's 3.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VASGX Vanguard LifeStrategy Growth Fund	3.71%	4.09%	6.15%	3.00%	2.10%	3.54%	3.54%	2.34%	4.36%	2.13%	2.23%	4.54%
VFORX Vanguard Target Retirement 2040 Fund	2.52%	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 VASGX in my portfolio?

With a correlation of 1.00, VFORX and VASGX 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, VFORX or VASGX?

VASGX has higher volatility (4.47%) compared to VFORX (4.17%). In terms of maximum drawdown, VFORX dropped -51.63% vs VASGX's -51.16%.

Which has better risk-adjusted returns?

VFORX currently has the higher Sharpe Ratio (2.24 vs 2.23), 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.