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VTWO vs. VTTVX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTWO vs. VTTVX

Last updated Jun 4, 2026

VTWO (Vanguard Russell 2000 ETF) and VTTVX (Vanguard Target Retirement 2025 Fund) are both funds - VTWO is a Small Cap Blend Equities fund tracking the Russell 2000 Index, while VTTVX is a Diversified Portfolio fund managed by Vanguard. Over the past 10 years, VTWO returned 11.07%/yr vs 7.99%/yr for VTTVX. Their correlation of 0.84 suggests significant overlap in exposure. VTWO charges 0.06%/yr vs 0.08%/yr for VTTVX.

Performance

VTWO vs. VTTVX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 2000 ETF (VTWO) and Vanguard Target Retirement 2025 Fund (VTTVX). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VTWO achieves a 17.08% return, which is significantly higher than VTTVX's 6.82% return. Over the past 10 years, VTWO has outperformed VTTVX with an annualized return of 11.07%, while VTTVX has yielded a comparatively lower 7.99% annualized return.

VTWO

1D
-1.38%
1M
3.51%
YTD
17.08%
6M
15.89%
1Y
39.34%
3Y*
18.11%
5Y*
6.28%
10Y*
11.07%

VTTVX

1D
0.19%
1M
3.00%
YTD
6.82%
6M
7.29%
1Y
16.99%
3Y*
12.88%
5Y*
6.14%
10Y*
7.99%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTWO vs. VTTVX - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VTWO
Vanguard Russell 2000 ETF		17.08%12.90%11.55%17.08%-20.49%14.79%20.22%25.81%-11.15%14.69%
VTTVX
Vanguard Target Retirement 2025 Fund		6.82%14.63%9.23%14.76%-15.57%9.78%13.31%19.63%-5.14%13.68%

Correlation

The correlation between VTWO and VTTVX is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.80

Correlation (3Y)
Calculated over the trailing 3-year period

0.79

Correlation (5Y)
Calculated over the trailing 5-year period

0.83

Correlation (10Y)
Calculated over the trailing 10-year period

0.82

Correlation (All Time)
Calculated using the full available price history since Sep 23, 2010

0.84

The correlation between VTWO and VTTVX has been stable across timeframes, ranging from 0.79 to 0.84 - a consistent structural relationship.

VTWO vs. VTTVX - Sectors Allocation Comparison

Sectors
VTWO
VTTVX

Industrials

17.7%
12.3%

Technology

17.0%
27.4%

Healthcare

16.5%
8.3%

Financial Services

15.7%
16.1%

Consumer Cyclical

8.4%
9.4%

Real Estate

6.1%
2.5%

Energy

6.1%
4.3%

Basic Materials

4.8%
4.2%

Utilities

2.9%
2.7%

Communication Services

2.4%
8.0%

Consumer Defensive

2.4%
4.8%

Industrials

VTWO
17.7%
VTTVX
12.3%

Technology

VTWO
17.0%
VTTVX
27.4%

Healthcare

VTWO
16.5%
VTTVX
8.3%

Financial Services

VTWO
15.7%
VTTVX
16.1%

Consumer Cyclical

VTWO
8.4%
VTTVX
9.4%

Real Estate

VTWO
6.1%
VTTVX
2.5%

Energy

VTWO
6.1%
VTTVX
4.3%

Basic Materials

VTWO
4.8%
VTTVX
4.2%

Utilities

VTWO
2.9%
VTTVX
2.7%

Communication Services

VTWO
2.4%
VTTVX
8.0%

Consumer Defensive

VTWO
2.4%
VTTVX
4.8%

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Vanguard Russell 2000 ETF

Vanguard Target Retirement 2025 Fund

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Often compared with VTTVX:
VTTVX vs. VTSAXVTTVX vs. TRRHXVTTVX vs. FFTWXVTTVX vs. VOOVTTVX vs. VFIAXVTTVX vs. VTWNXVTTVX vs. SCHD

Return for Risk

VTWO vs. VTTVX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VTWO
VTWO Risk / Return Rank: 6262
Overall Rank
VTWO Sharpe Ratio Rank: 6060
Sharpe Ratio Rank
VTWO Sortino Ratio Rank: 6060
Sortino Ratio Rank
VTWO Omega Ratio Rank: 5454
Omega Ratio Rank
VTWO Calmar Ratio Rank: 7171
Calmar Ratio Rank
VTWO Martin Ratio Rank: 6868
Martin Ratio Rank
VTTVX
VTTVX Risk / Return Rank: 7171
Overall Rank
VTTVX Sharpe Ratio Rank: 7575
Sharpe Ratio Rank
VTTVX Sortino Ratio Rank: 7575
Sortino Ratio Rank
VTTVX Omega Ratio Rank: 7373
Omega Ratio Rank
VTTVX Calmar Ratio Rank: 6464
Calmar Ratio Rank
VTTVX Martin Ratio Rank: 7070
Martin Ratio Rank
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.

VTWO vs. VTTVX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 ETF (VTWO) and Vanguard Target Retirement 2025 Fund (VTTVX). 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.

VTWOVTTVXDifference
Sharpe ratioReturn per unit of total volatility
2.07
2.52

-0.44

Sortino ratioReturn per unit of downside risk
2.88
3.62

-0.74

Omega ratioGain probability vs. loss probability

1.34

1.48

-0.14

Calmar ratioReturn relative to maximum drawdown

3.60

3.09

+0.51

Martin ratioReturn relative to average drawdown

12.79

13.50

-0.71

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTWO vs. VTTVX - Sharpe Ratio Comparison

The current VTWO Sharpe Ratio is 2.07, which is comparable to the VTTVX Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of VTWO and VTTVX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

VTWOVTTVXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.07

2.52

-0.44

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.28

0.68

-0.40

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.48

0.81

-0.33

Sharpe Ratio (All Time)

Calculated using the full available price history

0.52

0.57

-0.04

Drawdowns

VTWO vs. VTTVX - Drawdown Comparison

The maximum VTWO drawdown since its inception was -41.19%, smaller than the maximum VTTVX drawdown of -46.03%. Use the drawdown chart below to compare losses from any high point for VTWO and VTTVX.

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Drawdown Indicators

VTWOVTTVXDifference

Max Drawdown

Largest peak-to-trough decline

-41.19%

-46.03%

+4.84%

Max Drawdown (1Y)

Largest decline over 1 year

-10.99%

-5.57%

-5.42%

Max Drawdown (3Y)

Largest decline over 3 years

-27.57%

-7.84%

-19.73%

Max Drawdown (5Y)

Largest decline over 5 years

-31.88%

-21.52%

-10.36%

Max Drawdown (10Y)

Largest decline over 10 years

-41.19%

-22.51%

-18.68%

Current Drawdown

Current decline from peak

-1.50%

0.00%

-1.50%

Average Drawdown

Average peak-to-trough decline

-8.39%

-5.05%

-3.34%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.08%

1.27%

+1.81%

Volatility

VTWO vs. VTTVX - Volatility Comparison

Vanguard Russell 2000 ETF (VTWO) has a higher volatility of 5.73% compared to Vanguard Target Retirement 2025 Fund (VTTVX) at 2.24%. This indicates that VTWO's price experiences larger fluctuations and is considered to be riskier than VTTVX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VTWOVTTVXDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.73%

2.24%

+3.49%

Volatility (6M)

Calculated over the trailing 6-month period

13.50%

5.53%

+7.97%

Volatility (1Y)

Calculated over the trailing 1-year period

19.12%

6.83%

+12.29%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

22.48%

9.09%

+13.39%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.08%

9.94%

+13.14%

VTWO vs. VTTVX - Expense Ratio Comparison

VTWO has a 0.06% expense ratio, which is lower than VTTVX'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

VTWO vs. VTTVX - Dividend Comparison

VTWO's dividend yield for the trailing twelve months is around 1.08%, less than VTTVX's 6.91% yield.

PositionTTM20252024202320222021202020192018201720162015
VTTVX
Vanguard Target Retirement 2025 Fund		6.91%7.38%7.63%3.96%2.96%16.28%4.35%2.57%3.14%0.47%2.68%4.98%
VTWO
Vanguard Russell 2000 ETF		1.08%1.25%1.21%1.45%1.48%1.13%0.92%1.36%1.41%1.18%1.27%1.23%

Frequently Asked Questions

VTWO and VTTVX have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VTWO has higher volatility (5.73%) compared to VTTVX (2.24%). In terms of maximum drawdown, VTWO dropped -41.19% vs VTTVX's -46.03%.

VTTVX currently has the higher Sharpe Ratio (2.52 vs 2.07), 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.

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