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AACTX vs. AMECX
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

AACTX vs. AMECX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2020 Target Date Retirement Fund (AACTX) and American Funds The Income Fund of America Class A (AMECX). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

Over the past 10 years, AACTX has underperformed AMECX with an annualized return of 6.82%, while AMECX has yielded a comparatively higher 8.39% annualized return.


AACTX

1D
0.14%
1M
-1.80%
YTD
0.00%
6M
1.49%
1Y
14.86%
3Y*
9.57%
5Y*
5.30%
10Y*
6.82%

AMECX

1D
0.15%
1M
-1.75%
YTD
3.14%
6M
5.31%
1Y
21.01%
3Y*
12.35%
5Y*
8.14%
10Y*
8.39%
*Multi-year figures are annualized to reflect compound growth (CAGR)

AACTX vs. AMECX - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
AACTX
American Funds 2020 Target Date Retirement Fund
0.00%13.91%8.63%10.06%-11.29%10.28%10.61%15.25%-3.03%12.46%
AMECX
American Funds The Income Fund of America Class A
3.14%17.77%10.84%6.79%-6.40%17.37%4.49%18.50%-5.27%12.58%

Correlation

The correlation between AACTX and AMECX is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification — they'll tend to fall together during downturns. For meaningful risk reduction, look for holdings with correlations below 0.5.


AACTX vs. AMECX - Expense Ratio Comparison

AACTX has a 0.33% expense ratio, which is lower than AMECX's 0.56% expense ratio.


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Return for Risk

AACTX vs. AMECX — Risk / Return Rank

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

AACTX
AACTX Risk / Return Rank: 7575
Overall Rank
AACTX Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
AACTX Sortino Ratio Rank: 7878
Sortino Ratio Rank
AACTX Omega Ratio Rank: 7575
Omega Ratio Rank
AACTX Calmar Ratio Rank: 7373
Calmar Ratio Rank
AACTX Martin Ratio Rank: 7070
Martin Ratio Rank

AMECX
AMECX Risk / Return Rank: 7575
Overall Rank
AMECX Sharpe Ratio Rank: 8080
Sharpe Ratio Rank
AMECX Sortino Ratio Rank: 7979
Sortino Ratio Rank
AMECX Omega Ratio Rank: 7979
Omega Ratio Rank
AMECX Calmar Ratio Rank: 6666
Calmar Ratio Rank
AMECX Martin Ratio Rank: 7474
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.

AACTX vs. AMECX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2020 Target Date Retirement Fund (AACTX) and American Funds The Income Fund of America Class A (AMECX). 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.


AACTXAMECXDifference

Sharpe ratio

Return per unit of total volatility

1.55

1.63

-0.08

Sortino ratio

Return per unit of downside risk

2.20

2.24

-0.04

Omega ratio

Gain probability vs. loss probability

1.32

1.34

-0.02

Calmar ratio

Return relative to maximum drawdown

2.09

1.92

+0.17

Martin ratio

Return relative to average drawdown

8.36

8.71

-0.35

AACTX vs. AMECX - Sharpe Ratio Comparison

The current AACTX Sharpe Ratio is 1.55, which is comparable to the AMECX Sharpe Ratio of 1.63. The chart below compares the historical Sharpe Ratios of AACTX and AMECX, 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


AACTXAMECXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.55

1.63

-0.08

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.72

0.87

-0.15

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.88

0.79

+0.09

Sharpe Ratio (All Time)

Calculated using the full available price history

0.50

0.72

-0.22

Drawdowns

AACTX vs. AMECX - Drawdown Comparison

The maximum AACTX drawdown since its inception was -46.28%, which is greater than AMECX's maximum drawdown of -41.92%. Use the drawdown chart below to compare losses from any high point for AACTX and AMECX.


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Drawdown Indicators


AACTXAMECXDifference

Max Drawdown

Largest peak-to-trough decline

-46.28%

-41.92%

-4.36%

Max Drawdown (1Y)

Largest decline over 1 year

-5.12%

-6.13%

+1.01%

Max Drawdown (5Y)

Largest decline over 5 years

-17.18%

-15.78%

-1.40%

Max Drawdown (10Y)

Largest decline over 10 years

-17.18%

-26.13%

+8.95%

Current Drawdown

Current decline from peak

-3.41%

-4.20%

+0.79%

Average Drawdown

Average peak-to-trough decline

-5.57%

-4.46%

-1.11%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.33%

1.81%

-0.48%

Volatility

AACTX vs. AMECX - Volatility Comparison

The current volatility for American Funds 2020 Target Date Retirement Fund (AACTX) is 2.64%, while American Funds The Income Fund of America Class A (AMECX) has a volatility of 3.11%. This indicates that AACTX experiences smaller price fluctuations and is considered to be less risky than AMECX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


AACTXAMECXDifference

Volatility (1M)

Calculated over the trailing 1-month period

2.64%

3.11%

-0.47%

Volatility (6M)

Calculated over the trailing 6-month period

4.31%

5.64%

-1.33%

Volatility (1Y)

Calculated over the trailing 1-year period

7.09%

9.54%

-2.45%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

7.44%

9.44%

-2.00%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

7.75%

10.67%

-2.92%

Dividends

AACTX vs. AMECX - Dividend Comparison

AACTX's dividend yield for the trailing twelve months is around 7.80%, less than AMECX's 9.70% yield.


TTM20252024202320222021202020192018201720162015
AACTX
American Funds 2020 Target Date Retirement Fund
7.80%7.80%5.18%3.25%3.95%6.30%4.22%3.96%4.16%2.52%2.99%4.12%
AMECX
American Funds The Income Fund of America Class A
9.70%9.94%6.38%2.93%6.98%6.67%2.80%5.01%7.48%4.26%3.09%5.09%