AAATX vs. FRAMX

Last updated Jun 4, 2026

AAATX (American Funds 2010 Target Date Retirement Fund) and FRAMX (Fidelity Advisor Managed Retirement Income Fund Class A) are both Target Retirement Date funds. Over the past 10 years, AAATX returned 6.22%/yr vs 3.94%/yr for FRAMX. Their correlation of 0.92 suggests significant overlap in exposure. AAATX charges 0.34%/yr vs 0.70%/yr for FRAMX.

Performance

AAATX vs. FRAMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2010 Target Date Retirement Fund (AAATX) and Fidelity Advisor Managed Retirement Income Fund Class A (FRAMX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with AAATX having a 3.92% return and FRAMX slightly higher at 3.94%. Over the past 10 years, AAATX has outperformed FRAMX with an annualized return of 6.22%, while FRAMX has yielded a comparatively lower 3.94% annualized return.

AAATX

• 1D: 0.16%
• 1M: 1.35%
• YTD: 3.92%
• 6M: 4.30%
• 1Y: 11.67%
• 3Y*: 10.12%
• 5Y*: 5.11%
• 10Y*: 6.22%

FRAMX

• 1D: 0.21%
• 1M: 1.52%
• YTD: 3.94%
• 6M: 4.15%
• 1Y: 10.14%
• 3Y*: 7.28%
• 5Y*: 2.63%
• 10Y*: 3.94%

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

AAATX vs. FRAMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAATX American Funds 2010 Target Date Retirement Fund	3.92%	12.73%	7.83%	8.44%	-9.50%	9.02%	8.84%	13.51%	-2.85%	9.97%
FRAMX Fidelity Advisor Managed Retirement Income Fund Class A	3.94%	9.55%	4.04%	7.80%	-11.87%	2.52%	8.30%	10.28%	-2.05%	6.82%

Correlation

The correlation between AAATX and FRAMX is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since Aug 31, 2007	0.92

The correlation between AAATX and FRAMX has been stable across timeframes, ranging from 0.86 to 0.92 - a consistent structural relationship.

Return for Risk

AAATX vs. FRAMX — Risk / Return Rank

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

AAATX

AAATX Risk / Return Rank: 66
AAATX Sharpe Ratio Rank: 73
AAATX Sortino Ratio Rank: 75
AAATX Omega Ratio Rank: 73
AAATX Calmar Ratio Rank: 50
AAATX Martin Ratio Rank: 57

FRAMX

FRAMX Risk / Return Rank: 69
FRAMX Sharpe Ratio Rank: 71
FRAMX Sortino Ratio Rank: 75
FRAMX Omega Ratio Rank: 75
FRAMX Calmar Ratio Rank: 60
FRAMX Martin Ratio Rank: 64

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.

AAATX vs. FRAMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2010 Target Date Retirement Fund (AAATX) and Fidelity Advisor Managed Retirement Income Fund Class A (FRAMX). 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.

	AAATX	FRAMX	Difference
Sharpe ratio Return per unit of total volatility	2.48	2.46	+0.02
Sortino ratio Return per unit of downside risk	3.61	3.62	-0.01
Omega ratio Gain probability vs. loss probability	1.48	1.49	-0.01
Calmar ratio Return relative to maximum drawdown	2.69	2.96	-0.27
Martin ratio Return relative to average drawdown	11.52	12.58	-1.06
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AAATX vs. FRAMX - Sharpe Ratio Comparison

The current AAATX Sharpe Ratio is 2.48, which is comparable to the FRAMX Sharpe Ratio of 2.46. The chart below compares the historical Sharpe Ratios of AAATX and FRAMX, 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

	AAATX	FRAMX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.48	2.46	+0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.79	0.50	+0.29
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.93	0.88	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.52	+0.04

Drawdowns

AAATX vs. FRAMX - Drawdown Comparison

The maximum AAATX drawdown since its inception was -40.44%, which is greater than FRAMX's maximum drawdown of -33.94%. Use the drawdown chart below to compare losses from any high point for AAATX and FRAMX.

Drawdown Indicators

	AAATX	FRAMX	Difference
Max Drawdown Largest peak-to-trough decline	-40.44%	-33.94%	-6.50%
Max Drawdown (1Y) Largest decline over 1 year	-4.42%	-3.45%	-0.97%
Max Drawdown (3Y) Largest decline over 3 years	-5.57%	-5.02%	-0.55%
Max Drawdown (5Y) Largest decline over 5 years	-14.99%	-16.31%	+1.32%
Max Drawdown (10Y) Largest decline over 10 years	-15.13%	-16.31%	+1.18%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.35%	-3.83%	-0.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.03%	0.81%	+0.22%

Volatility

AAATX vs. FRAMX - Volatility Comparison

The current volatility for American Funds 2010 Target Date Retirement Fund (AAATX) is 1.54%, while Fidelity Advisor Managed Retirement Income Fund Class A (FRAMX) has a volatility of 1.67%. This indicates that AAATX experiences smaller price fluctuations and is considered to be less risky than FRAMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAATX	FRAMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.54%	1.67%	-0.13%
Volatility (6M) Calculated over the trailing 6-month period	3.83%	3.43%	+0.40%
Volatility (1Y) Calculated over the trailing 1-year period	4.80%	4.16%	+0.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.53%	5.28%	+1.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.68%	4.52%	+2.16%

AAATX vs. FRAMX - Expense Ratio Comparison

AAATX has a 0.34% expense ratio, which is lower than FRAMX's 0.70% expense ratio.

Dividends

AAATX vs. FRAMX - Dividend Comparison

AAATX's dividend yield for the trailing twelve months is around 6.58%, more than FRAMX's 2.84% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAATX American Funds 2010 Target Date Retirement Fund	6.58%	6.84%	5.16%	3.53%	3.41%	3.78%	3.72%	3.48%	3.79%	2.51%	2.67%	4.60%
FRAMX Fidelity Advisor Managed Retirement Income Fund Class A	2.84%	2.77%	2.77%	2.58%	4.26%	3.31%	2.23%	2.37%	4.40%	8.26%	1.42%	1.42%

Frequently Asked Questions

Can I hold both AAATX and FRAMX in my portfolio?

With a correlation of 0.91, AAATX and FRAMX 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, AAATX or FRAMX?

FRAMX has higher volatility (1.67%) compared to AAATX (1.54%). In terms of maximum drawdown, AAATX dropped -40.44% vs FRAMX's -33.94%.

Which has better risk-adjusted returns?

AAATX currently has the higher Sharpe Ratio (2.48 vs 2.46), 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.