AACTX vs. VFIFX
Compare and contrast key facts about American Funds 2020 Target Date Retirement Fund (AACTX) and Vanguard Target Retirement 2050 Fund (VFIFX).
AACTX is managed by American Funds. It was launched on Jan 31, 2007. VFIFX is managed by Vanguard. It was launched on Jun 7, 2006.
Performance
AACTX vs. VFIFX - Performance Comparison
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AACTX vs. VFIFX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AACTX American Funds 2020 Target Date Retirement Fund | -1.55% | 13.91% | 8.63% | 10.06% | -11.29% | 10.28% | 10.61% | 15.25% | -3.03% | 12.46% |
VFIFX Vanguard Target Retirement 2050 Fund | -3.95% | 21.42% | 14.45% | 20.39% | -17.48% | 16.42% | 16.40% | 24.99% | -7.89% | 19.15% |
Returns By Period
In the year-to-date period, AACTX achieves a -1.55% return, which is significantly higher than VFIFX's -3.95% return. Over the past 10 years, AACTX has underperformed VFIFX with an annualized return of 6.66%, while VFIFX has yielded a comparatively higher 10.29% annualized return.
AACTX
- 1D
- 0.22%
- 1M
- -4.91%
- YTD
- -1.55%
- 6M
- 0.45%
- 1Y
- 9.69%
- 3Y*
- 9.17%
- 5Y*
- 5.09%
- 10Y*
- 6.66%
VFIFX
- 1D
- -0.28%
- 1M
- -8.41%
- YTD
- -3.95%
- 6M
- -1.01%
- 1Y
- 17.29%
- 3Y*
- 14.65%
- 5Y*
- 8.11%
- 10Y*
- 10.29%
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AACTX vs. VFIFX - Expense Ratio Comparison
AACTX has a 0.33% expense ratio, which is higher than VFIFX's 0.08% expense ratio.
Return for Risk
AACTX vs. VFIFX — Risk / Return Rank
AACTX
VFIFX
AACTX vs. VFIFX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2020 Target Date Retirement Fund (AACTX) and Vanguard Target Retirement 2050 Fund (VFIFX). 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.
| AACTX | VFIFX | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.42 | 1.17 | +0.25 |
Sortino ratioReturn per unit of downside risk | 2.01 | 1.70 | +0.31 |
Omega ratioGain probability vs. loss probability | 1.29 | 1.25 | +0.04 |
Calmar ratioReturn relative to maximum drawdown | 1.80 | 1.48 | +0.31 |
Martin ratioReturn relative to average drawdown | 7.52 | 6.86 | +0.65 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| AACTX | VFIFX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.42 | 1.17 | +0.25 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.69 | 0.58 | +0.11 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.86 | 0.69 | +0.18 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.49 | 0.47 | +0.02 |
Correlation
The correlation between AACTX and VFIFX is 0.95, 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.
Dividends
AACTX vs. VFIFX - Dividend Comparison
AACTX's dividend yield for the trailing twelve months is around 7.93%, more than VFIFX's 2.18% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AACTX American Funds 2020 Target Date Retirement Fund | 7.93% | 7.80% | 5.18% | 3.25% | 3.95% | 6.30% | 4.22% | 3.96% | 4.16% | 2.52% | 2.99% | 4.12% |
VFIFX Vanguard Target Retirement 2050 Fund | 2.18% | 2.09% | 2.26% | 2.21% | 2.38% | 12.83% | 1.84% | 2.20% | 2.51% | 0.03% | 2.04% | 2.36% |
Drawdowns
AACTX vs. VFIFX - Drawdown Comparison
The maximum AACTX drawdown since its inception was -46.28%, smaller than the maximum VFIFX drawdown of -51.68%. Use the drawdown chart below to compare losses from any high point for AACTX and VFIFX.
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Drawdown Indicators
| AACTX | VFIFX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.28% | -51.68% | +5.40% |
Max Drawdown (1Y)Largest decline over 1 year | -5.31% | -10.52% | +5.21% |
Max Drawdown (5Y)Largest decline over 5 years | -17.18% | -25.40% | +8.22% |
Max Drawdown (10Y)Largest decline over 10 years | -17.18% | -31.36% | +14.18% |
Current DrawdownCurrent decline from peak | -4.91% | -8.87% | +3.96% |
Average DrawdownAverage peak-to-trough decline | -5.57% | -6.93% | +1.36% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.27% | 2.27% | -1.00% |
Volatility
AACTX vs. VFIFX - Volatility Comparison
The current volatility for American Funds 2020 Target Date Retirement Fund (AACTX) is 2.33%, while Vanguard Target Retirement 2050 Fund (VFIFX) has a volatility of 4.70%. This indicates that AACTX experiences smaller price fluctuations and is considered to be less risky than VFIFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AACTX | VFIFX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.33% | 4.70% | -2.37% |
Volatility (6M)Calculated over the trailing 6-month period | 4.17% | 8.53% | -4.36% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.02% | 14.79% | -7.77% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.43% | 14.07% | -6.64% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.74% | 15.05% | -7.31% |