AAATX vs. SCHD
Compare and contrast key facts about American Funds 2010 Target Date Retirement Fund (AAATX) and Schwab US Dividend Equity ETF (SCHD).
AAATX is managed by American Funds. It was launched on Jan 31, 2007. SCHD is a passively managed fund by Charles Schwab that tracks the performance of the Dow Jones U.S. Dividend 100 Index. It was launched on Oct 20, 2011.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: AAATX or SCHD.
Performance
AAATX vs. SCHD - Performance Comparison
Returns By Period
In the year-to-date period, AAATX achieves a 8.49% return, which is significantly lower than SCHD's 17.35% return. Over the past 10 years, AAATX has underperformed SCHD with an annualized return of 5.06%, while SCHD has yielded a comparatively higher 11.54% annualized return.
AAATX
8.49%
-0.65%
6.05%
13.44%
5.22%
5.06%
SCHD
17.35%
2.29%
13.68%
26.18%
12.87%
11.54%
Key characteristics
| AAATX | SCHD | |
|---|---|---|
| Sharpe Ratio | 2.60 | 2.40 |
| Sortino Ratio | 3.77 | 3.44 |
| Omega Ratio | 1.50 | 1.42 |
| Calmar Ratio | 2.17 | 3.63 |
| Martin Ratio | 16.08 | 12.99 |
| Ulcer Index | 0.84% | 2.05% |
| Daily Std Dev | 5.22% | 11.09% |
| Max Drawdown | -37.63% | -33.37% |
| Current Drawdown | -1.29% | -0.62% |
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AAATX vs. SCHD - Expense Ratio Comparison
AAATX has a 0.34% expense ratio, which is higher than SCHD's 0.06% expense ratio.
Correlation
The correlation between AAATX and SCHD is 0.83, 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.
Risk-Adjusted Performance
AAATX vs. SCHD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2010 Target Date Retirement Fund (AAATX) and Schwab US Dividend Equity ETF (SCHD). 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
AAATX vs. SCHD - Dividend Comparison
AAATX's dividend yield for the trailing twelve months is around 2.58%, less than SCHD's 3.37% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAATX American Funds 2010 Target Date Retirement Fund | 2.58% | 2.80% | 2.48% | 1.52% | 2.40% | 2.04% | 2.08% | 1.71% | 1.74% | 1.42% | 6.12% | 7.48% |
SCHD Schwab US Dividend Equity ETF | 3.37% | 3.49% | 3.39% | 2.78% | 3.16% | 2.98% | 3.06% | 2.63% | 2.89% | 2.97% | 2.63% | 2.47% |
Drawdowns
AAATX vs. SCHD - Drawdown Comparison
The maximum AAATX drawdown since its inception was -37.63%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for AAATX and SCHD. For additional features, visit the drawdowns tool.
Volatility
AAATX vs. SCHD - Volatility Comparison
The current volatility for American Funds 2010 Target Date Retirement Fund (AAATX) is 1.33%, while Schwab US Dividend Equity ETF (SCHD) has a volatility of 3.48%. This indicates that AAATX experiences smaller price fluctuations and is considered to be less risky than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.