VTIVX vs. VTTHX

Last updated Jun 23, 2026

VTIVX (Vanguard Target Retirement 2045 Fund) and VTTHX (Vanguard Target Retirement 2035 Fund) are both Target Retirement Date funds from Vanguard. Over the past 10 years, VTIVX returned 11.37%/yr vs 9.81%/yr for VTTHX. With a 1.00 correlation, they move nearly in lockstep. Both charge a 0.08% expense ratio.

Performance

VTIVX vs. VTTHX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Target Retirement 2045 Fund (VTIVX) and Vanguard Target Retirement 2035 Fund (VTTHX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTIVX achieves a 10.59% return, which is significantly higher than VTTHX's 8.77% return. Over the past 10 years, VTIVX has outperformed VTTHX with an annualized return of 11.37%, while VTTHX has yielded a comparatively lower 9.81% annualized return.

VTIVX

• 1D: 1.05%
• 1M: 1.64%
• YTD: 10.59%
• 6M: 10.49%
• 1Y: 25.45%
• 3Y*: 17.27%
• 5Y*: 9.70%
• 10Y*: 11.37%

VTTHX

• 1D: 0.88%
• 1M: 1.50%
• YTD: 8.77%
• 6M: 8.72%
• 1Y: 21.33%
• 3Y*: 14.91%
• 5Y*: 8.01%
• 10Y*: 9.81%

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

VTIVX vs. VTTHX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTIVX Vanguard Target Retirement 2045 Fund	10.59%	20.01%	13.68%	19.72%	-17.38%	16.16%	16.31%	24.94%	-7.89%	19.16%
VTTHX Vanguard Target Retirement 2035 Fund	8.77%	17.55%	11.56%	17.37%	-16.64%	12.96%	14.80%	22.44%	-6.57%	16.81%

Correlation

The correlation between VTIVX and VTTHX is 1.00 - 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	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Oct 27, 2003	1.00

The correlation between VTIVX and VTTHX has been stable across timeframes, ranging from 1.00 to 1.00 - a consistent structural relationship.

Return for Risk

VTIVX vs. VTTHX — Risk / Return Rank

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

VTIVX

VTIVX Risk / Return Rank: 69
VTIVX Sharpe Ratio Rank: 71
VTIVX Sortino Ratio Rank: 67
VTIVX Omega Ratio Rank: 67
VTIVX Calmar Ratio Rank: 68
VTIVX Martin Ratio Rank: 74

VTTHX

VTTHX Risk / Return Rank: 68
VTTHX Sharpe Ratio Rank: 69
VTTHX Sortino Ratio Rank: 69
VTTHX Omega Ratio Rank: 69
VTTHX Calmar Ratio Rank: 64
VTTHX Martin Ratio Rank: 71

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.

VTIVX vs. VTTHX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2045 Fund (VTIVX) and Vanguard Target Retirement 2035 Fund (VTTHX). 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.

	VTIVX	VTTHX	Difference
Sharpe ratio: Return per unit of total volatility	2.25	2.23	+0.02
Sortino ratio: Return per unit of downside risk	3.11	3.13	-0.02
Omega ratio: Gain probability vs. loss probability	1.42	1.42	0.00
Calmar ratio: Return relative to maximum drawdown	3.03	2.94	+0.09
Martin ratio: Return relative to average drawdown	13.09	12.67	+0.42

VTIVX vs. VTTHX - Sharpe Ratio Comparison

The current VTIVX Sharpe Ratio is 2.25, which is comparable to the VTTHX Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of VTIVX and VTTHX, 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

VTIVX vs. VTTHX - Drawdown Comparison

The maximum VTIVX drawdown since its inception was -51.69%, roughly equal to the maximum VTTHX drawdown of -51.76%. Use the drawdown chart below to compare losses from any high point for VTIVX and VTTHX.

Drawdown Indicators

	VTIVX	VTTHX	Difference
Max Drawdown Largest peak-to-trough decline	-51.69%	-51.76%	+0.07%
Max Drawdown (1Y) Largest decline over 1 year	-8.30%	-7.17%	-1.13%
Max Drawdown (3Y) Largest decline over 3 years	-13.40%	-10.87%	-2.53%
Max Drawdown (5Y) Largest decline over 5 years	-25.10%	-23.53%	-1.57%
Max Drawdown (10Y) Largest decline over 10 years	-31.42%	-27.15%	-4.27%
Current Drawdown Current decline from peak	-0.44%	-0.33%	-0.11%
Average Drawdown Average peak-to-trough decline	-6.32%	-6.08%	-0.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.91%	1.66%	+0.25%

Volatility

VTIVX vs. VTTHX - Volatility Comparison

Vanguard Target Retirement 2045 Fund (VTIVX) has a higher volatility of 4.52% compared to Vanguard Target Retirement 2035 Fund (VTTHX) at 3.84%. This indicates that VTIVX's price experiences larger fluctuations and is considered to be riskier than VTTHX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTIVX	VTTHX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.52%	3.84%	+0.68%
Volatility (6M) Calculated over the trailing 6-month period	9.25%	7.90%	+1.35%
Volatility (1Y) Calculated over the trailing 1-year period	11.14%	9.44%	+1.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.60%	11.46%	+2.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.83%	12.49%	+2.34%

VTIVX vs. VTTHX - Expense Ratio Comparison

Both VTIVX and VTTHX have an expense ratio of 0.08%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VTIVX vs. VTTHX - Dividend Comparison

VTIVX's dividend yield for the trailing twelve months is around 2.26%, less than VTTHX's 2.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTIVX Vanguard Target Retirement 2045 Fund	2.26%	2.50%	2.36%	2.27%	2.75%	15.40%	1.90%	2.23%	2.52%	0.04%	2.47%	3.29%
VTTHX Vanguard Target Retirement 2035 Fund	2.72%	2.96%	3.12%	2.47%	2.71%	19.52%	2.50%	2.33%	2.69%	0.16%	2.77%	4.67%

Frequently Asked Questions

Can I hold both VTIVX and VTTHX in my portfolio?

With a correlation of 1.00, VTIVX and VTTHX 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, VTIVX or VTTHX?

VTIVX has higher volatility (4.52%) compared to VTTHX (3.84%). In terms of maximum drawdown, VTIVX dropped -51.69% vs VTTHX's -51.76%.

Which has better risk-adjusted returns?

VTIVX currently has the higher Sharpe Ratio (2.25 vs 2.23), 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.