VTHR vs. VFORX

Last updated Jun 14, 2026

VTHR (Vanguard Russell 3000 ETF) and VFORX (Vanguard Target Retirement 2040 Fund) are both funds - VTHR is a Large Cap Blend Equities fund tracking the Russell 3000 Index, while VFORX is a Target Retirement Date fund managed by Vanguard. Over the past 10 years, VTHR returned 14.94%/yr vs 10.63%/yr for VFORX. Their correlation of 0.92 suggests significant overlap in exposure. VTHR charges 0.07%/yr vs 0.08%/yr for VFORX.

Performance

VTHR vs. VFORX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 3000 ETF (VTHR) 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, VTHR achieves a 9.46% return, which is significantly higher than VFORX's 8.11% return. Over the past 10 years, VTHR has outperformed VFORX with an annualized return of 14.94%, while VFORX has yielded a comparatively lower 10.63% annualized return.

VTHR

• 1D: 0.61%
• 1M: -0.28%
• YTD: 9.46%
• 6M: 9.47%
• 1Y: 25.83%
• 3Y*: 20.45%
• 5Y*: 12.17%
• 10Y*: 14.94%

VFORX

• 1D: 1.91%
• 1M: -0.18%
• YTD: 8.11%
• 6M: 8.81%
• 1Y: 21.22%
• 3Y*: 16.17%
• 5Y*: 8.20%
• 10Y*: 10.63%

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

VTHR vs. VFORX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTHR Vanguard Russell 3000 ETF	9.46%	16.99%	23.57%	25.92%	-19.20%	25.49%	20.93%	30.82%	-5.65%	21.06%
VFORX Vanguard Target Retirement 2040 Fund	8.11%	18.77%	12.90%	18.56%	-17.00%	14.55%	15.48%	23.86%	-7.32%	18.45%

Correlation

The correlation between VTHR and VFORX is 0.95 - 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	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Sep 22, 2010	0.92

The correlation between VTHR and VFORX has been stable across timeframes, ranging from 0.92 to 0.95 - a consistent structural relationship.

Return for Risk

VTHR vs. VFORX — Risk / Return Rank

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

VTHR

VTHR Risk / Return Rank: 68
VTHR Sharpe Ratio Rank: 68
VTHR Sortino Ratio Rank: 66
VTHR Omega Ratio Rank: 67
VTHR Calmar Ratio Rank: 63
VTHR Martin Ratio Rank: 75

VFORX

VFORX Risk / Return Rank: 73
VFORX Sharpe Ratio Rank: 73
VFORX Sortino Ratio Rank: 71
VFORX Omega Ratio Rank: 72
VFORX Calmar Ratio Rank: 71
VFORX Martin Ratio Rank: 79

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.

VTHR vs. VFORX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 3000 ETF (VTHR) 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.

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.

	VTHR	VFORX	Difference
Sharpe ratio: Return per unit of total volatility	1.92	2.00	-0.08
Sortino ratio: Return per unit of downside risk	2.64	2.78	-0.14
Omega ratio: Gain probability vs. loss probability	1.34	1.37	-0.03
Calmar ratio: Return relative to maximum drawdown	2.74	2.67	+0.07
Martin ratio: Return relative to average drawdown	12.28	11.49	+0.79

VTHR vs. VFORX - Sharpe Ratio Comparison

The current VTHR Sharpe Ratio is 1.92, which is comparable to the VFORX Sharpe Ratio of 2.00. The chart below compares the historical Sharpe Ratios of VTHR 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.

Drawdowns

VTHR vs. VFORX - Drawdown Comparison

The maximum VTHR drawdown since its inception was -34.61%, smaller than the maximum VFORX drawdown of -51.63%. Use the drawdown chart below to compare losses from any high point for VTHR and VFORX.

Drawdown Indicators

	VTHR	VFORX	Difference
Max Drawdown Largest peak-to-trough decline	-34.61%	-51.63%	+17.02%
Max Drawdown (1Y) Largest decline over 1 year	-8.91%	-7.70%	-1.21%
Max Drawdown (3Y) Largest decline over 3 years	-19.36%	-12.12%	-7.24%
Max Drawdown (5Y) Largest decline over 5 years	-25.06%	-24.32%	-0.74%
Max Drawdown (10Y) Largest decline over 10 years	-34.61%	-29.35%	-5.26%
Current Drawdown Current decline from peak	-2.02%	-1.82%	-0.20%
Average Drawdown Average peak-to-trough decline	-4.04%	-6.77%	+2.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.99%	1.78%	+0.21%

Volatility

VTHR vs. VFORX - Volatility Comparison

Vanguard Russell 3000 ETF (VTHR) and Vanguard Target Retirement 2040 Fund (VFORX) have volatilities of 4.33% and 4.19%, 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

	VTHR	VFORX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.33%	4.19%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	9.87%	8.47%	+1.40%
Volatility (1Y) Calculated over the trailing 1-year period	12.70%	10.27%	+2.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.36%	12.51%	+4.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.86%	13.70%	+4.16%

VTHR vs. VFORX - Expense Ratio Comparison

VTHR has a 0.07% 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

VTHR vs. VFORX - Dividend Comparison

VTHR's dividend yield for the trailing twelve months is around 1.02%, less than VFORX's 2.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFORX Vanguard Target Retirement 2040 Fund	2.56%	2.77%	2.86%	2.38%	2.60%	20.68%	2.06%	2.28%	2.58%	0.04%	2.40%	2.99%
VTHR Vanguard Russell 3000 ETF	1.02%	1.08%	1.19%	1.47%	1.52%	1.16%	1.37%	1.65%	1.89%	1.63%	1.82%	1.84%

Frequently Asked Questions

Can I hold both VTHR and VFORX in my portfolio?

With a correlation of 0.95, VTHR 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, VTHR or VFORX?

VTHR has higher volatility (4.33%) compared to VFORX (4.19%). In terms of maximum drawdown, VTHR dropped -34.61% vs VFORX's -51.63%.

Which has better risk-adjusted returns?

VFORX currently has the higher Sharpe Ratio (2.00 vs 1.92), 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.