VTWNX vs. VOO
Compare and contrast key facts about Vanguard Target Retirement 2020 Fund (VTWNX) and Vanguard S&P 500 ETF (VOO).
VTWNX is managed by Vanguard. It was launched on Jun 7, 2006. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VTWNX or VOO.
Key characteristics
| VTWNX | VOO | |
|---|---|---|
| YTD Return | 8.44% | 19.24% |
| 1Y Return | 14.92% | 28.44% |
| 3Y Return (Ann) | 2.04% | 10.06% |
| 5Y Return (Ann) | 5.81% | 15.24% |
| 10Y Return (Ann) | 5.77% | 12.92% |
| Sharpe Ratio | 1.37 | 2.11 |
| Daily Std Dev | 10.49% | 12.65% |
| Max Drawdown | -42.16% | -33.99% |
| Current Drawdown | 0.00% | -0.33% |
Correlation
The correlation between VTWNX and VOO is 0.93, 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
VTWNX vs. VOO - Performance Comparison
In the year-to-date period, VTWNX achieves a 8.44% return, which is significantly lower than VOO's 19.24% return. Over the past 10 years, VTWNX has underperformed VOO with an annualized return of 5.77%, while VOO has yielded a comparatively higher 12.92% 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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VTWNX vs. VOO - Expense Ratio Comparison
VTWNX has a 0.08% expense ratio, which is higher than VOO's 0.03% 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%.
Risk-Adjusted Performance
VTWNX vs. VOO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Target Retirement 2020 Fund (VTWNX) and Vanguard S&P 500 ETF (VOO). 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
VTWNX vs. VOO - Dividend Comparison
VTWNX's dividend yield for the trailing twelve months is around 5.72%, more than VOO's 1.28% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTWNX Vanguard Target Retirement 2020 Fund | 5.72% | 6.20% | 4.99% | 19.57% | 6.28% | 3.54% | 4.94% | 2.74% | 2.74% | 4.15% | 2.04% | 1.83% |
VOO Vanguard S&P 500 ETF | 1.28% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
VTWNX vs. VOO - Drawdown Comparison
The maximum VTWNX drawdown since its inception was -42.16%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for VTWNX and VOO. For additional features, visit the drawdowns tool.
Volatility
VTWNX vs. VOO - Volatility Comparison
The current volatility for Vanguard Target Retirement 2020 Fund (VTWNX) is 1.63%, while Vanguard S&P 500 ETF (VOO) has a volatility of 3.93%. This indicates that VTWNX experiences smaller price fluctuations and is considered to be less risky than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.