VLXVX vs. SPHY

Last updated Jun 6, 2026

VLXVX (Vanguard Target Retirement 2065 Fund) and SPHY (SPDR Portfolio High Yield Bond ETF) are both funds - VLXVX is a Diversified Portfolio fund managed by Vanguard, while SPHY is a High Yield Bonds fund tracking the ICE BofA US High Yield Index. Over the past 5 years, VLXVX returned 10.11%/yr vs 4.33%/yr for SPHY. A 0.66 correlation means they provide meaningful diversification when combined. VLXVX charges 0.08%/yr vs 0.05%/yr for SPHY.

Performance

VLXVX vs. SPHY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Retirement 2065 Fund (VLXVX) and SPDR Portfolio High Yield Bond ETF (SPHY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VLXVX achieves a 11.69% return, which is significantly higher than SPHY's 1.24% return.

VLXVX

• 1D: 0.29%
• 1M: 2.03%
• YTD: 11.69%
• 6M: 12.27%
• 1Y: 27.67%
• 3Y*: 19.61%
• 5Y*: 10.11%
• 10Y*: —

SPHY

• 1D: -0.39%
• 1M: -0.31%
• YTD: 1.24%
• 6M: 1.59%
• 1Y: 6.84%
• 3Y*: 8.82%
• 5Y*: 4.33%
• 10Y*: 5.04%

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

VLXVX vs. SPHY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VLXVX Vanguard Target Retirement 2065 Fund	11.69%	21.44%	14.37%	20.40%	-17.41%	16.46%	16.18%	24.97%	-7.94%	7.68%
SPHY SPDR Portfolio High Yield Bond ETF	1.24%	8.59%	8.54%	12.81%	-10.57%	5.61%	6.65%	13.16%	-3.35%	2.20%

Correlation

The correlation between VLXVX and SPHY is 0.77, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (All Time) Calculated using the full available price history since Jul 28, 2017	0.66

The correlation between VLXVX and SPHY shifts across timeframes, from 0.66 (all time) to 0.77 (1 year), reflecting how their relationship changes across market environments.

VLXVX vs. SPHY - Sectors Allocation Comparison

Sectors	VLXVX	SPHY
Technology	27.3%	-
Financial Services	16.1%	99.9%
Industrials	12.4%	-
Consumer Cyclical	9.4%	-
Healthcare	8.3%	-
Communication Services	8.0%	-
Consumer Defensive	4.8%	-
Energy	4.3%	0.1%
Basic Materials	4.3%	-
Utilities	2.7%	-
Real Estate	2.5%	-

Return for Risk

VLXVX vs. SPHY — Risk / Return Rank

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

VLXVX

VLXVX Risk / Return Rank: 70
VLXVX Sharpe Ratio Rank: 72
VLXVX Sortino Ratio Rank: 68
VLXVX Omega Ratio Rank: 67
VLXVX Calmar Ratio Rank: 69
VLXVX Martin Ratio Rank: 76

SPHY

SPHY Risk / Return Rank: 62
SPHY Sharpe Ratio Rank: 56
SPHY Sortino Ratio Rank: 61
SPHY Omega Ratio Rank: 62
SPHY Calmar Ratio Rank: 59
SPHY Martin Ratio Rank: 70

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.

VLXVX vs. SPHY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2065 Fund (VLXVX) and SPDR Portfolio High Yield Bond ETF (SPHY). 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.

	VLXVX	SPHY	Difference
Sharpe ratio: Return per unit of total volatility	2.41	1.86	+0.54
Sortino ratio: Return per unit of downside risk	3.33	2.82	+0.51
Omega ratio: Gain probability vs. loss probability	1.44	1.37	+0.07
Calmar ratio: Return relative to maximum drawdown	3.08	2.85	+0.23
Martin ratio: Return relative to average drawdown	13.65	12.89	+0.76
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VLXVX vs. SPHY - Sharpe Ratio Comparison

The current VLXVX Sharpe Ratio is 2.41, which is comparable to the SPHY Sharpe Ratio of 1.86. The chart below compares the historical Sharpe Ratios of VLXVX and SPHY, 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

	VLXVX	SPHY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.41	1.86	+0.54
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.72	0.61	+0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.64	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.72	0.63	+0.09

Drawdowns

VLXVX vs. SPHY - Drawdown Comparison

The maximum VLXVX drawdown since its inception was -31.42%, which is greater than SPHY's maximum drawdown of -21.97%. Use the drawdown chart below to compare losses from any high point for VLXVX and SPHY.

Drawdown Indicators

	VLXVX	SPHY	Difference
Max Drawdown Largest peak-to-trough decline	-31.42%	-21.97%	-9.45%
Max Drawdown (1Y) Largest decline over 1 year	-8.93%	-2.41%	-6.52%
Max Drawdown (3Y) Largest decline over 3 years	-14.53%	-4.85%	-9.68%
Max Drawdown (5Y) Largest decline over 5 years	-25.37%	-15.29%	-10.08%
Max Drawdown (10Y) Largest decline over 10 years	—	-21.97%	—
Current Drawdown Current decline from peak	-0.42%	-0.52%	+0.10%
Average Drawdown Average peak-to-trough decline	-4.98%	-2.29%	-2.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.01%	0.53%	+1.48%

Volatility

VLXVX vs. SPHY - Volatility Comparison

Vanguard Target Retirement 2065 Fund (VLXVX) has a higher volatility of 3.39% compared to SPDR Portfolio High Yield Bond ETF (SPHY) at 1.15%. This indicates that VLXVX's price experiences larger fluctuations and is considered to be riskier than SPHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VLXVX	SPHY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.39%	1.15%	+2.24%
Volatility (6M) Calculated over the trailing 6-month period	9.11%	2.93%	+6.18%
Volatility (1Y) Calculated over the trailing 1-year period	11.44%	3.69%	+7.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.19%	7.17%	+7.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.69%	7.89%	+7.80%

VLXVX vs. SPHY - Expense Ratio Comparison

VLXVX has a 0.08% expense ratio, which is higher than SPHY's 0.05% 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%.

Dividends

VLXVX vs. SPHY - Dividend Comparison

VLXVX's dividend yield for the trailing twelve months is around 1.79%, less than SPHY's 7.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPHY SPDR Portfolio High Yield Bond ETF	7.29%	7.38%	7.80%	7.30%	6.47%	5.13%	5.63%	5.73%	4.09%	4.41%	4.27%	4.29%
VLXVX Vanguard Target Retirement 2065 Fund	1.79%	2.00%	2.11%	2.06%	2.00%	1.93%	1.60%	1.90%	1.85%	0.78%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VLXVX and SPHY in my portfolio?

VLXVX and SPHY have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VLXVX or SPHY?

VLXVX has higher volatility (3.39%) compared to SPHY (1.15%). In terms of maximum drawdown, VLXVX dropped -31.42% vs SPHY's -21.97%.

Which has better risk-adjusted returns?

VLXVX currently has the higher Sharpe Ratio (2.41 vs 1.86), 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.