VTTHX vs. TLYIX

Last updated Jun 5, 2026

VTTHX (Vanguard Target Retirement 2035 Fund) and TLYIX (TIAA-CREF Lifecycle Index 2035 Fund) are both Target Retirement Date funds. Over the past 10 years, VTTHX returned 9.72%/yr vs 9.96%/yr for TLYIX. With a 0.99 correlation, they move nearly in lockstep. VTTHX charges 0.08%/yr vs 0.10%/yr for TLYIX.

Performance

VTTHX vs. TLYIX - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with VTTHX having a 8.47% return and TLYIX slightly lower at 8.31%. Both investments have delivered pretty close results over the past 10 years, with VTTHX having a 9.72% annualized return and TLYIX not far ahead at 9.96%.

VTTHX

• 1D: -0.60%
• 1M: 2.70%
• YTD: 8.47%
• 6M: 9.05%
• 1Y: 20.81%
• 3Y*: 15.64%
• 5Y*: 7.69%
• 10Y*: 9.72%

TLYIX

• 1D: -0.58%
• 1M: 2.73%
• YTD: 8.31%
• 6M: 8.75%
• 1Y: 20.27%
• 3Y*: 15.38%
• 5Y*: 7.79%
• 10Y*: 9.96%

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

VTTHX vs. TLYIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTTHX Vanguard Target Retirement 2035 Fund	8.47%	17.55%	11.56%	17.37%	-16.64%	12.96%	14.80%	22.44%	-6.57%	16.81%
TLYIX TIAA-CREF Lifecycle Index 2035 Fund	8.31%	17.02%	11.83%	17.24%	-16.30%	13.19%	15.53%	23.03%	-5.76%	16.49%

Correlation

The correlation between VTTHX and TLYIX 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	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Oct 2, 2009	0.99

The correlation between VTTHX and TLYIX has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.

Return for Risk

VTTHX vs. TLYIX — Risk / Return Rank

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

VTTHX

VTTHX Risk / Return Rank: 64
VTTHX Sharpe Ratio Rank: 65
VTTHX Sortino Ratio Rank: 64
VTTHX Omega Ratio Rank: 63
VTTHX Calmar Ratio Rank: 59
VTTHX Martin Ratio Rank: 67

TLYIX

TLYIX Risk / Return Rank: 67
TLYIX Sharpe Ratio Rank: 67
TLYIX Sortino Ratio Rank: 67
TLYIX Omega Ratio Rank: 65
TLYIX Calmar Ratio Rank: 64
TLYIX 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.

VTTHX vs. TLYIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2035 Fund (VTTHX) and TIAA-CREF Lifecycle Index 2035 Fund (TLYIX). 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.

	VTTHX	TLYIX	Difference
Sharpe ratio: Return per unit of total volatility	2.38	2.40	-0.02
Sortino ratio: Return per unit of downside risk	3.37	3.40	-0.02
Omega ratio: Gain probability vs. loss probability	1.44	1.45	0.00
Calmar ratio: Return relative to maximum drawdown	2.96	3.06	-0.10
Martin ratio: Return relative to average drawdown	13.04	13.48	-0.44
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTTHX vs. TLYIX - Sharpe Ratio Comparison

The current VTTHX Sharpe Ratio is 2.38, which is comparable to the TLYIX Sharpe Ratio of 2.40. The chart below compares the historical Sharpe Ratios of VTTHX and TLYIX, 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

	VTTHX	TLYIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.38	2.40	-0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.68	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.78	0.80	-0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	0.75	-0.22

Drawdowns

VTTHX vs. TLYIX - Drawdown Comparison

The maximum VTTHX drawdown since its inception was -51.76%, which is greater than TLYIX's maximum drawdown of -26.39%. Use the drawdown chart below to compare losses from any high point for VTTHX and TLYIX.

Drawdown Indicators

	VTTHX	TLYIX	Difference
Max Drawdown Largest peak-to-trough decline	-51.76%	-26.39%	-25.37%
Max Drawdown (1Y) Largest decline over 1 year	-7.17%	-6.82%	-0.35%
Max Drawdown (3Y) Largest decline over 3 years	-10.87%	-10.90%	+0.03%
Max Drawdown (5Y) Largest decline over 5 years	-23.53%	-23.24%	-0.29%
Max Drawdown (10Y) Largest decline over 10 years	-27.15%	-26.39%	-0.76%
Current Drawdown Current decline from peak	-0.60%	-0.58%	-0.02%
Average Drawdown Average peak-to-trough decline	-6.09%	-3.80%	-2.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.63%	1.54%	+0.09%

Volatility

VTTHX vs. TLYIX - Volatility Comparison

Vanguard Target Retirement 2035 Fund (VTTHX) and TIAA-CREF Lifecycle Index 2035 Fund (TLYIX) have volatilities of 2.86% and 2.82%, 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

	VTTHX	TLYIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.86%	2.82%	+0.04%
Volatility (6M) Calculated over the trailing 6-month period	7.19%	7.03%	+0.16%
Volatility (1Y) Calculated over the trailing 1-year period	8.91%	8.71%	+0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.38%	11.47%	-0.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.46%	12.47%	-0.01%

VTTHX vs. TLYIX - Expense Ratio Comparison

VTTHX has a 0.08% expense ratio, which is lower than TLYIX's 0.10% 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

VTTHX vs. TLYIX - Dividend Comparison

VTTHX's dividend yield for the trailing twelve months is around 2.72%, less than TLYIX's 3.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TLYIX TIAA-CREF Lifecycle Index 2035 Fund	3.41%	3.70%	3.09%	2.19%	2.70%	2.89%	2.03%	2.26%	2.73%	0.15%	2.56%	0.27%
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 VTTHX and TLYIX in my portfolio?

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

VTTHX has higher volatility (2.86%) compared to TLYIX (2.82%). In terms of maximum drawdown, VTTHX dropped -51.76% vs TLYIX's -26.39%.

Which has better risk-adjusted returns?

TLYIX currently has the higher Sharpe Ratio (2.40 vs 2.38), 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.