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VFORX vs. VBIAX
Performance
Return for Risk
Dividends
Drawdowns
Volatility

Performance

VFORX vs. VBIAX - Performance Comparison

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

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VFORX vs. VBIAX - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
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%
VBIAX
Vanguard Balanced Index Fund Admiral Shares
-4.19%13.61%14.58%17.54%-16.90%14.21%16.40%21.78%-2.86%13.89%

Returns By Period

In the year-to-date period, VFORX achieves a -3.32% return, which is significantly higher than VBIAX's -4.19% return. Over the past 10 years, VFORX has outperformed VBIAX with an annualized return of 9.48%, while VBIAX has yielded a comparatively lower 8.77% 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%

VBIAX

1D
-0.06%
1M
-5.43%
YTD
-4.19%
6M
-2.40%
1Y
10.89%
3Y*
11.56%
5Y*
6.33%
10Y*
8.77%
*Multi-year figures are annualized to reflect compound growth (CAGR)

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VFORX vs. VBIAX - Expense Ratio Comparison

VFORX has a 0.08% expense ratio, which is higher than VBIAX's 0.07% 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. VBIAX — Risk / Return Rank

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

VFORX
VFORX Risk / Return Rank: 7171
Overall Rank
VFORX Sharpe Ratio Rank: 7171
Sharpe Ratio Rank
VFORX Sortino Ratio Rank: 7272
Sortino Ratio Rank
VFORX Omega Ratio Rank: 7070
Omega Ratio Rank
VFORX Calmar Ratio Rank: 6969
Calmar Ratio Rank
VFORX Martin Ratio Rank: 7474
Martin Ratio Rank

VBIAX
VBIAX Risk / Return Rank: 5959
Overall Rank
VBIAX Sharpe Ratio Rank: 5656
Sharpe Ratio Rank
VBIAX Sortino Ratio Rank: 5959
Sortino Ratio Rank
VBIAX Omega Ratio Rank: 5858
Omega Ratio Rank
VBIAX Calmar Ratio Rank: 5757
Calmar Ratio Rank
VBIAX Martin Ratio Rank: 6666
Martin Ratio Rank
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. VBIAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2040 Fund (VFORX) and Vanguard Balanced Index Fund Admiral Shares (VBIAX). 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.


VFORXVBIAXDifference

Sharpe ratio

Return per unit of total volatility

1.22

1.01

+0.21

Sortino ratio

Return per unit of downside risk

1.76

1.51

+0.25

Omega ratio

Gain probability vs. loss probability

1.26

1.22

+0.04

Calmar ratio

Return relative to maximum drawdown

1.55

1.31

+0.24

Martin ratio

Return relative to average drawdown

7.04

6.22

+0.82

VFORX vs. VBIAX - Sharpe Ratio Comparison

The current VFORX Sharpe Ratio is 1.22, which is comparable to the VBIAX Sharpe Ratio of 1.01. The chart below compares the historical Sharpe Ratios of VFORX and VBIAX, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.


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Sharpe Ratios by Period


VFORXVBIAXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.22

1.01

+0.21

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.58

0.58

0.00

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.70

0.79

-0.09

Sharpe Ratio (All Time)

Calculated using the full available price history

0.46

0.60

-0.14

Correlation

The correlation between VFORX and VBIAX is 0.97, 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. VBIAX - Dividend Comparison

VFORX's dividend yield for the trailing twelve months is around 2.86%, less than VBIAX's 5.84% yield.


TTM20252024202320222021202020192018201720162015
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%
VBIAX
Vanguard Balanced Index Fund Admiral Shares
5.84%6.00%5.27%4.35%2.83%3.19%2.65%2.28%2.32%1.95%2.09%2.09%

Drawdowns

VFORX vs. VBIAX - Drawdown Comparison

The maximum VFORX drawdown since its inception was -51.63%, which is greater than VBIAX's maximum drawdown of -35.90%. Use the drawdown chart below to compare losses from any high point for VFORX and VBIAX.


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Drawdown Indicators


VFORXVBIAXDifference

Max Drawdown

Largest peak-to-trough decline

-51.63%

-35.90%

-15.73%

Max Drawdown (1Y)

Largest decline over 1 year

-8.88%

-7.78%

-1.10%

Max Drawdown (5Y)

Largest decline over 5 years

-24.32%

-21.53%

-2.79%

Max Drawdown (10Y)

Largest decline over 10 years

-29.35%

-22.78%

-6.57%

Current Drawdown

Current decline from peak

-7.70%

-5.83%

-1.87%

Average Drawdown

Average peak-to-trough decline

-6.82%

-4.47%

-2.35%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.96%

1.64%

+0.32%

Volatility

VFORX vs. VBIAX - Volatility Comparison

Vanguard Target Retirement 2040 Fund (VFORX) has a higher volatility of 4.11% compared to Vanguard Balanced Index Fund Admiral Shares (VBIAX) at 3.07%. This indicates that VFORX's price experiences larger fluctuations and is considered to be riskier than VBIAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


VFORXVBIAXDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.11%

3.07%

+1.04%

Volatility (6M)

Calculated over the trailing 6-month period

7.24%

5.93%

+1.31%

Volatility (1Y)

Calculated over the trailing 1-year period

12.42%

11.27%

+1.15%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

12.35%

11.02%

+1.33%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

13.64%

11.17%

+2.47%