VWETX vs. VTTHX

Last updated Jun 26, 2026

VWETX (Vanguard Long-Term Investment-Grade Fund Admiral Shares) and VTTHX (Vanguard Target Retirement 2035 Fund) are both mutual funds - VWETX is a Total Bond Market fund managed by Vanguard, while VTTHX is a Target Retirement Date fund managed by Vanguard. Over the past 10 years, VWETX returned 1.78%/yr vs 9.92%/yr for VTTHX. At a correlation of -0.10, they often move in opposite directions. VWETX charges 0.12%/yr vs 0.08%/yr for VTTHX.

Performance

VWETX vs. VTTHX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Long-Term Investment-Grade Fund Admiral Shares (VWETX) 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, VWETX achieves a 1.65% return, which is significantly lower than VTTHX's 7.23% return. Over the past 10 years, VWETX has underperformed VTTHX with an annualized return of 1.78%, while VTTHX has yielded a comparatively higher 9.92% annualized return.

VWETX

• 1D: 0.79%
• 1M: 2.04%
• YTD: 1.65%
• 6M: 1.42%
• 1Y: 6.50%
• 3Y*: 3.49%
• 5Y*: -2.43%
• 10Y*: 1.78%

VTTHX

• 1D: 0.10%
• 1M: -0.81%
• YTD: 7.23%
• 6M: 6.61%
• 1Y: 17.85%
• 3Y*: 14.98%
• 5Y*: 7.32%
• 10Y*: 9.92%

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

VWETX vs. VTTHX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWETX Vanguard Long-Term Investment-Grade Fund Admiral Shares	1.65%	7.31%	-2.70%	8.92%	-25.54%	-2.79%	15.50%	20.56%	-6.17%	12.08%
VTTHX Vanguard Target Retirement 2035 Fund	7.23%	17.55%	11.56%	17.37%	-16.64%	12.96%	14.80%	22.44%	-6.57%	16.81%

Correlation

The correlation between VWETX and VTTHX is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.32
Correlation (10Y) Calculated over the trailing 10-year period	0.13
Correlation (All Time) Calculated using the full available price history since Oct 27, 2003	-0.10

The correlation between VWETX and VTTHX shifts across timeframes, from -0.10 (all time) to 0.47 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VWETX vs. VTTHX — Risk / Return Rank

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

VWETX

VWETX Risk / Return Rank: 14
VWETX Sharpe Ratio Rank: 14
VWETX Sortino Ratio Rank: 14
VWETX Omega Ratio Rank: 12
VWETX Calmar Ratio Rank: 18
VWETX Martin Ratio Rank: 14

VTTHX

VTTHX Risk / Return Rank: 58
VTTHX Sharpe Ratio Rank: 58
VTTHX Sortino Ratio Rank: 57
VTTHX Omega Ratio Rank: 59
VTTHX Calmar Ratio Rank: 54
VTTHX Martin Ratio Rank: 63

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.

VWETX vs. VTTHX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Investment-Grade Fund Admiral Shares (VWETX) 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.

	VWETX	VTTHX	Difference
Sharpe ratio: Return per unit of total volatility	0.83	1.88	-1.05
Sortino ratio: Return per unit of downside risk	1.24	2.63	-1.39
Omega ratio: Gain probability vs. loss probability	1.14	1.35	-0.21
Calmar ratio: Return relative to maximum drawdown	1.25	2.48	-1.23
Martin ratio: Return relative to average drawdown	3.11	10.64	-7.53

VWETX vs. VTTHX - Sharpe Ratio Comparison

The current VWETX Sharpe Ratio is 0.83, which is lower than the VTTHX Sharpe Ratio of 1.88. The chart below compares the historical Sharpe Ratios of VWETX 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

VWETX vs. VTTHX - Drawdown Comparison

The maximum VWETX drawdown since its inception was -36.04%, smaller than the maximum VTTHX drawdown of -51.76%. Use the drawdown chart below to compare losses from any high point for VWETX and VTTHX.

Drawdown Indicators

	VWETX	VTTHX	Difference
Max Drawdown Largest peak-to-trough decline	-36.04%	-51.76%	+15.72%
Max Drawdown (1Y) Largest decline over 1 year	-5.12%	-7.17%	+2.05%
Max Drawdown (3Y) Largest decline over 3 years	-13.33%	-10.87%	-2.46%
Max Drawdown (5Y) Largest decline over 5 years	-34.42%	-23.53%	-10.89%
Max Drawdown (10Y) Largest decline over 10 years	-36.04%	-27.15%	-8.89%
Current Drawdown Current decline from peak	-17.90%	-1.74%	-16.16%
Average Drawdown Average peak-to-trough decline	-7.23%	-6.08%	-1.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.05%	1.67%	+0.38%

Volatility

VWETX vs. VTTHX - Volatility Comparison

The current volatility for Vanguard Long-Term Investment-Grade Fund Admiral Shares (VWETX) is 2.07%, while Vanguard Target Retirement 2035 Fund (VTTHX) has a volatility of 3.98%. This indicates that VWETX experiences smaller price fluctuations and is considered to be less risky than VTTHX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWETX	VTTHX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.07%	3.98%	-1.91%
Volatility (6M) Calculated over the trailing 6-month period	5.71%	7.97%	-2.26%
Volatility (1Y) Calculated over the trailing 1-year period	7.75%	9.53%	-1.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.08%	11.48%	+0.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.86%	12.43%	-1.57%

VWETX vs. VTTHX - Expense Ratio Comparison

VWETX has a 0.12% expense ratio, which is higher than VTTHX's 0.08% 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%.

Dividends

VWETX vs. VTTHX - Dividend Comparison

VWETX's dividend yield for the trailing twelve months is around 5.12%, more than VTTHX's 2.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTTHX Vanguard Target Retirement 2035 Fund	2.76%	2.96%	3.12%	2.47%	2.71%	19.52%	2.50%	2.33%	2.69%	0.16%	2.77%	4.67%
VWETX Vanguard Long-Term Investment-Grade Fund Admiral Shares	5.12%	5.06%	5.10%	4.26%	4.54%	4.86%	6.99%	5.11%	4.40%	5.60%	6.25%	7.49%

Frequently Asked Questions

Can I hold both VWETX and VTTHX in my portfolio?

VWETX and VTTHX have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VWETX or VTTHX?

VTTHX has higher volatility (3.98%) compared to VWETX (2.07%). In terms of maximum drawdown, VWETX dropped -36.04% vs VTTHX's -51.76%.

Which has better risk-adjusted returns?

VTTHX currently has the higher Sharpe Ratio (1.88 vs 0.83), 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.