VFORX vs. VITSX
Compare and contrast key facts about Vanguard Target Retirement 2040 Fund (VFORX) and Vanguard Total Stock Market Index Fund Institutional Shares (VITSX).
VFORX is managed by Vanguard. It was launched on Jun 7, 2006. VITSX is managed by Vanguard. It was launched on Jul 7, 1997.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VFORX or VITSX.
Key characteristics
| VFORX | VITSX | |
|---|---|---|
| YTD Return | 13.06% | 21.86% |
| 1Y Return | 28.12% | 40.36% |
| 3Y Return (Ann) | 3.96% | 8.15% |
| 5Y Return (Ann) | 8.97% | 14.76% |
| 10Y Return (Ann) | 8.19% | 12.62% |
| Sharpe Ratio | 2.88 | 3.32 |
| Sortino Ratio | 4.09 | 4.39 |
| Omega Ratio | 1.55 | 1.62 |
| Calmar Ratio | 2.06 | 3.32 |
| Martin Ratio | 18.66 | 21.41 |
| Ulcer Index | 1.53% | 1.93% |
| Daily Std Dev | 9.92% | 12.44% |
| Max Drawdown | -51.63% | -55.31% |
| Current Drawdown | -1.42% | -0.92% |
Correlation
The correlation between VFORX and VITSX 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.
Performance
VFORX vs. VITSX - Performance Comparison
In the year-to-date period, VFORX achieves a 13.06% return, which is significantly lower than VITSX's 21.86% return. Over the past 10 years, VFORX has underperformed VITSX with an annualized return of 8.19%, while VITSX has yielded a comparatively higher 12.62% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VFORX vs. VITSX - Expense Ratio Comparison
VFORX has a 0.08% expense ratio, which is higher than VITSX's 0.03% 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%.
Risk-Adjusted Performance
VFORX vs. VITSX - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2040 Fund (VFORX) and Vanguard Total Stock Market Index Fund Institutional Shares (VITSX). 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.
Dividends
VFORX vs. VITSX - Dividend Comparison
VFORX's dividend yield for the trailing twelve months is around 2.10%, more than VITSX's 1.31% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFORX Vanguard Target Retirement 2040 Fund | 2.10% | 2.38% | 2.60% | 20.68% | 2.06% | 2.28% | 2.58% | 1.95% | 2.40% | 2.99% | 1.99% | 1.79% |
VITSX Vanguard Total Stock Market Index Fund Institutional Shares | 1.31% | 1.44% | 1.66% | 1.21% | 1.42% | 1.77% | 2.04% | 1.71% | 1.93% | 1.99% | 1.77% | 1.75% |
Drawdowns
VFORX vs. VITSX - Drawdown Comparison
The maximum VFORX drawdown since its inception was -51.63%, smaller than the maximum VITSX drawdown of -55.31%. Use the drawdown chart below to compare losses from any high point for VFORX and VITSX. For additional features, visit the drawdowns tool.
Volatility
VFORX vs. VITSX - Volatility Comparison
The current volatility for Vanguard Target Retirement 2040 Fund (VFORX) is 1.90%, while Vanguard Total Stock Market Index Fund Institutional Shares (VITSX) has a volatility of 2.56%. This indicates that VFORX experiences smaller price fluctuations and is considered to be less risky than VITSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.