VTTVX vs. VTWO
Compare and contrast key facts about Vanguard Target Retirement 2025 Fund (VTTVX) and Vanguard Russell 2000 ETF (VTWO).
VTTVX is managed by Vanguard. It was launched on Oct 27, 2003. VTWO is a passively managed fund by Vanguard that tracks the performance of the Russell 2000 Index. It was launched on Sep 20, 2010.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VTTVX or VTWO.
Key characteristics
| VTTVX | VTWO | |
|---|---|---|
| YTD Return | 10.97% | 19.87% |
| 1Y Return | 20.49% | 44.45% |
| 3Y Return (Ann) | 2.21% | 1.12% |
| 5Y Return (Ann) | 6.59% | 10.03% |
| 10Y Return (Ann) | 6.55% | 8.90% |
| Sharpe Ratio | 2.23 | 1.96 |
| Sortino Ratio | 3.25 | 2.81 |
| Omega Ratio | 1.50 | 1.34 |
| Calmar Ratio | 1.73 | 1.46 |
| Martin Ratio | 11.37 | 11.29 |
| Ulcer Index | 1.74% | 3.74% |
| Daily Std Dev | 8.85% | 21.50% |
| Max Drawdown | -46.03% | -41.19% |
| Current Drawdown | -0.10% | 0.00% |
Correlation
The correlation between VTTVX and VTWO is 0.84, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VTTVX vs. VTWO - Performance Comparison
In the year-to-date period, VTTVX achieves a 10.97% return, which is significantly lower than VTWO's 19.87% return. Over the past 10 years, VTTVX has underperformed VTWO with an annualized return of 6.55%, while VTWO has yielded a comparatively higher 8.90% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VTTVX vs. VTWO - Expense Ratio Comparison
VTTVX has a 0.08% expense ratio, which is lower than VTWO'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%.
Risk-Adjusted Performance
VTTVX vs. VTWO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2025 Fund (VTTVX) and Vanguard Russell 2000 ETF (VTWO). 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.
Dividends
VTTVX vs. VTWO - Dividend Comparison
VTTVX's dividend yield for the trailing twelve months is around 2.47%, more than VTWO's 1.19% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTTVX Vanguard Target Retirement 2025 Fund | 2.47% | 2.74% | 2.21% | 2.16% | 1.65% | 2.37% | 2.55% | 1.99% | 2.00% | 2.19% | 1.95% | 1.82% |
VTWO Vanguard Russell 2000 ETF | 1.19% | 1.45% | 1.48% | 1.13% | 0.92% | 1.36% | 1.41% | 1.18% | 1.27% | 1.23% | 1.12% | 1.04% |
Drawdowns
VTTVX vs. VTWO - Drawdown Comparison
The maximum VTTVX drawdown since its inception was -46.03%, which is greater than VTWO's maximum drawdown of -41.19%. Use the drawdown chart below to compare losses from any high point for VTTVX and VTWO. For additional features, visit the drawdowns tool.
Volatility
VTTVX vs. VTWO - Volatility Comparison
The current volatility for Vanguard Target Retirement 2025 Fund (VTTVX) is 1.74%, while Vanguard Russell 2000 ETF (VTWO) has a volatility of 7.20%. This indicates that VTTVX experiences smaller price fluctuations and is considered to be less risky than VTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.