AACTX vs. IRTR
AACTX (American Funds 2020 Target Date Retirement Fund) and IRTR (iShares LifePath Retirement ETF) are both Target Retirement Date funds. Over the past year, AACTX returned 10.63% vs 10.79% for IRTR. Their correlation of 0.93 means they have usually moved in the same direction. AACTX charges 0.33%/yr vs 0.08%/yr for IRTR.
Performance
AACTX vs. IRTR - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with AACTX having a 4.80% return and IRTR slightly higher at 4.98%.
AACTX
- 1D
- 0.07%
- 1M
- -0.13%
- 6M
- 2.91%
- YTD
- 4.80%
- 1Y
- 10.63%
- 3Y*
- 10.54%
- 5Y*
- 5.44%
- 10Y*
- 6.93%
- ALL TIME*
- 5.87%
IRTR
- 1D
- 0.43%
- 1M
- -0.14%
- 6M
- 3.48%
- YTD
- 4.98%
- 1Y
- 10.79%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 13.20%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $0.00 | $0.00 | $0.00 | |
| $388.92K | $459.62K | $445.56K |
AACTX vs. IRTR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
AACTX American Funds 2020 Target Date Retirement Fund | 4.80% | 13.91% | 8.63% | 9.16% |
IRTR iShares LifePath Retirement ETF | 4.98% | 12.70% | 7.59% | 11.03% |
Correlation
The correlation between AACTX and IRTR is 0.93, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.93 |
Correlation (All Time) Calculated using the full available price history since Oct 19, 2023 | 0.93 |
The correlation between AACTX and IRTR has been stable across timeframes, ranging from 0.93 to 0.93 - a consistent structural relationship.
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Return for Risk
AACTX vs. IRTR — Risk / Return Rank
AACTX
IRTR
AACTX vs. IRTR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2020 Target Date Retirement Fund (AACTX) and iShares LifePath Retirement ETF (IRTR). 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.
| AACTX | IRTR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.10 | ||
| Sortino ratioReturn per unit of downside risk | +0.16 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.32 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 2.07 | 2.25 | -0.18 |
| Martin ratioReturn relative to average drawdown | 9.00 | 9.45 | -0.45 |
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Drawdowns
AACTX vs. IRTR - Drawdown Comparison
The maximum AACTX drawdown since its inception was -46.28%, which is greater than IRTR's maximum drawdown of -6.29%. Use the drawdown chart below to compare losses from any high point for AACTX and IRTR.
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Drawdown Indicators
| AACTX | IRTR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.28% | -6.29% | -39.99% |
Max Drawdown (1Y)Largest decline over 1 year | -5.12% | -4.82% | -0.30% |
Max Drawdown (3Y)Largest decline over 3 years | -6.06% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -17.18% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -17.18% | — | — |
Current DrawdownCurrent decline from peak | -0.40% | -0.59% | +0.19% |
Average DrawdownAverage peak-to-trough decline | -5.49% | -0.78% | -4.71% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.18% | 1.14% | +0.04% |
Volatility
AACTX vs. IRTR - Volatility Comparison
The current volatility for American Funds 2020 Target Date Retirement Fund (AACTX) is 1.30%, while iShares LifePath Retirement ETF (IRTR) has a volatility of 1.79%. This indicates that AACTX experiences smaller price fluctuations and is considered to be less risky than IRTR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AACTX | IRTR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.30% | 1.79% | -0.49% |
Volatility (6M)Calculated over the trailing 6-month period | 4.74% | 5.40% | -0.66% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.89% | 6.40% | -0.51% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.50% | 7.06% | +0.44% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.72% | 7.06% | +0.66% |
AACTX vs. IRTR - Expense Ratio Comparison
AACTX has a 0.33% expense ratio, which is higher than IRTR's 0.08% expense ratio.
Dividends
AACTX vs. IRTR - Dividend Comparison
AACTX's dividend yield for the trailing twelve months is around 7.45%, more than IRTR's 3.08% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AACTX American Funds 2020 Target Date Retirement Fund | 7.45% | 7.80% | 5.18% | 3.25% | 3.95% | 6.30% | 4.22% | 3.96% | 4.16% | 2.52% | 2.99% | 4.12% |
IRTR iShares LifePath Retirement ETF | 3.08% | 3.03% | 3.03% | 0.85% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
With a correlation of 0.93, AACTX and IRTR 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.
IRTR has higher volatility (1.79%) compared to AACTX (1.30%). In terms of maximum drawdown, AACTX dropped -46.28% vs IRTR's -6.29%.
AACTX currently has the higher Sharpe Ratio (1.80 vs 1.70), 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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