VITSX vs. VFORX

Last updated Jun 4, 2026

VITSX (Vanguard Total Stock Market Index Fund Institutional Shares) and VFORX (Vanguard Target Retirement 2040 Fund) are both mutual funds - VITSX is a Large Cap Blend Equities fund managed by Vanguard, while VFORX is a Target Retirement Date fund managed by Vanguard. Over the past 10 years, VITSX returned 15.13%/yr vs 10.66%/yr for VFORX. With a 0.97 correlation, they move nearly in lockstep. VITSX charges 0.03%/yr vs 0.08%/yr for VFORX.

Performance

VITSX vs. VFORX - Performance Comparison

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

Returns By Period

In the year-to-date period, VITSX achieves a 11.98% return, which is significantly higher than VFORX's 10.11% return. Over the past 10 years, VITSX has outperformed VFORX with an annualized return of 15.13%, while VFORX has yielded a comparatively lower 10.66% annualized return.

VITSX

• 1D: 0.24%
• 1M: 5.76%
• YTD: 11.98%
• 6M: 11.88%
• 1Y: 29.11%
• 3Y*: 22.36%
• 5Y*: 13.05%
• 10Y*: 15.13%

VFORX

• 1D: 0.31%
• 1M: 4.40%
• YTD: 10.11%
• 6M: 10.85%
• 1Y: 23.95%
• 3Y*: 17.28%
• 5Y*: 8.86%
• 10Y*: 10.66%

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

VITSX vs. VFORX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VITSX Vanguard Total Stock Market Index Fund Institutional Shares	11.98%	17.14%	23.25%	26.51%	-19.51%	25.74%	20.99%	30.80%	-5.18%	21.16%
VFORX Vanguard Target Retirement 2040 Fund	10.11%	18.77%	12.90%	18.56%	-17.00%	14.55%	15.48%	23.86%	-7.32%	18.45%

Correlation

The correlation between VITSX and VFORX is 0.96 - 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	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Jun 8, 2006	0.97

The correlation between VITSX and VFORX has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

VITSX vs. VFORX - Sectors Allocation Comparison

Sectors	VITSX	VFORX
Technology	33.3%	27.4%
Financial Services	11.9%	16.1%
Communication Services	10.1%	8.0%
Consumer Cyclical	9.8%	9.4%
Industrials	9.5%	12.3%
Healthcare	9.1%	8.3%
Consumer Defensive	4.7%	4.8%
Energy	3.8%	4.3%
Utilities	2.7%	2.7%
Real Estate	2.4%	2.5%
Basic Materials	2.0%	4.3%

Return for Risk

VITSX vs. VFORX — Risk / Return Rank

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

VITSX

VITSX Risk / Return Rank: 71
VITSX Sharpe Ratio Rank: 72
VITSX Sortino Ratio Rank: 65
VITSX Omega Ratio Rank: 63
VITSX Calmar Ratio Rank: 75
VITSX Martin Ratio Rank: 83

VFORX

VFORX Risk / Return Rank: 71
VFORX Sharpe Ratio Rank: 74
VFORX Sortino Ratio Rank: 71
VFORX Omega Ratio Rank: 69
VFORX Calmar Ratio Rank: 67
VFORX 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.

VITSX vs. VFORX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Stock Market Index Fund Institutional Shares (VITSX) and Vanguard Target Retirement 2040 Fund (VFORX). 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.

	VITSX	VFORX	Difference
Sharpe ratio Return per unit of total volatility	2.47	2.50	-0.03
Sortino ratio Return per unit of downside risk	3.36	3.50	-0.14
Omega ratio Gain probability vs. loss probability	1.44	1.46	-0.02
Calmar ratio Return relative to maximum drawdown	3.37	3.15	+0.22
Martin ratio Return relative to average drawdown	15.58	13.90	+1.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VITSX vs. VFORX - Sharpe Ratio Comparison

The current VITSX Sharpe Ratio is 2.47, which is comparable to the VFORX Sharpe Ratio of 2.50. The chart below compares the historical Sharpe Ratios of VITSX and VFORX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VITSX	VFORX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.47	2.50	-0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.76	0.72	+0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.82	0.78	+0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.50	-0.01

Drawdowns

VITSX vs. VFORX - Drawdown Comparison

The maximum VITSX drawdown since its inception was -55.30%, which is greater than VFORX's maximum drawdown of -51.63%. Use the drawdown chart below to compare losses from any high point for VITSX and VFORX.

Drawdown Indicators

	VITSX	VFORX	Difference
Max Drawdown Largest peak-to-trough decline	-55.30%	-51.63%	-3.67%
Max Drawdown (1Y) Largest decline over 1 year	-8.92%	-7.70%	-1.22%
Max Drawdown (3Y) Largest decline over 3 years	-19.36%	-12.12%	-7.24%
Max Drawdown (5Y) Largest decline over 5 years	-25.36%	-24.32%	-1.04%
Max Drawdown (10Y) Largest decline over 10 years	-34.97%	-29.35%	-5.62%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-10.07%	-6.77%	-3.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.93%	1.74%	+0.19%

Volatility

VITSX vs. VFORX - Volatility Comparison

Vanguard Total Stock Market Index Fund Institutional Shares (VITSX) and Vanguard Target Retirement 2040 Fund (VFORX) have volatilities of 2.95% and 2.99%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VITSX	VFORX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.95%	2.99%	-0.04%
Volatility (6M) Calculated over the trailing 6-month period	9.19%	7.78%	+1.41%
Volatility (1Y) Calculated over the trailing 1-year period	12.19%	9.71%	+2.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.36%	12.43%	+4.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.41%	13.68%	+4.73%

VITSX vs. VFORX - Expense Ratio Comparison

VITSX has a 0.03% expense ratio, which is lower than VFORX's 0.08% 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

VITSX vs. VFORX - Dividend Comparison

VITSX's dividend yield for the trailing twelve months is around 1.01%, less than VFORX's 2.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFORX Vanguard Target Retirement 2040 Fund	2.51%	2.77%	2.86%	2.38%	2.60%	20.68%	2.06%	2.28%	2.58%	0.04%	2.40%	2.99%
VITSX Vanguard Total Stock Market Index Fund Institutional Shares	1.01%	1.12%	1.27%	1.43%	1.66%	1.21%	1.42%	1.77%	2.04%	1.71%	1.93%	1.99%

Frequently Asked Questions

Can I hold both VITSX and VFORX in my portfolio?

With a correlation of 0.96, VITSX and VFORX 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, VITSX or VFORX?

VFORX has higher volatility (2.99%) compared to VITSX (2.95%). In terms of maximum drawdown, VITSX dropped -55.30% vs VFORX's -51.63%.

Which has better risk-adjusted returns?

VFORX currently has the higher Sharpe Ratio (2.50 vs 2.47), 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.