AACTX vs. VTWNX
AACTX (American Funds 2020 Target Date Retirement Fund) and VTWNX (Vanguard Target Retirement 2020 Fund) are both Target Retirement Date funds. Over the past 10 years, AACTX returned 7.23%/yr vs 6.98%/yr for VTWNX. With a 0.97 correlation, they move nearly in lockstep. AACTX charges 0.33%/yr vs 0.08%/yr for VTWNX.
Performance
AACTX vs. VTWNX - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, AACTX achieves a 4.31% return, which is significantly lower than VTWNX's 4.74% return. Both investments have delivered pretty close results over the past 10 years, with AACTX having a 7.23% annualized return and VTWNX not far behind at 6.98%.
AACTX
- 1D
- -0.27%
- 1M
- 0.41%
- YTD
- 4.31%
- 6M
- 4.27%
- 1Y
- 11.97%
- 3Y*
- 11.06%
- 5Y*
- 5.62%
- 10Y*
- 7.23%
VTWNX
- 1D
- -0.17%
- 1M
- 0.91%
- YTD
- 4.74%
- 6M
- 4.58%
- 1Y
- 12.10%
- 3Y*
- 10.31%
- 5Y*
- 4.71%
- 10Y*
- 6.98%
AACTX vs. VTWNX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AACTX American Funds 2020 Target Date Retirement Fund | 4.31% | 13.91% | 8.63% | 10.06% | -11.29% | 10.28% | 10.61% | 15.25% | -3.03% | 12.46% |
VTWNX Vanguard Target Retirement 2020 Fund | 4.74% | 12.17% | 7.57% | 12.71% | -14.17% | 8.15% | 12.05% | 17.64% | -4.23% | 11.83% |
Correlation
The correlation between AACTX and VTWNX is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.95 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.96 |
Correlation (All Time) Calculated using the full available price history since Feb 2, 2007 | 0.97 |
The correlation between AACTX and VTWNX has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
AACTX vs. VTWNX — Risk / Return Rank
AACTX
VTWNX
AACTX vs. VTWNX - 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 2020 Fund (VTWNX). 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 | VTWNX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.13 | ||
| Sortino ratioReturn per unit of downside risk | -0.20 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.44 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.44 | 2.85 | -0.40 |
| Martin ratioReturn relative to average drawdown | 10.70 | 12.24 | -1.54 |
Loading charts...
Drawdowns
AACTX vs. VTWNX - Drawdown Comparison
The maximum AACTX drawdown since its inception was -46.28%, which is greater than VTWNX's maximum drawdown of -42.16%. Use the drawdown chart below to compare losses from any high point for AACTX and VTWNX.
Loading charts...
Drawdown Indicators
| AACTX | VTWNX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.28% | -42.16% | -4.12% |
Max Drawdown (1Y)Largest decline over 1 year | -5.12% | -4.43% | -0.69% |
Max Drawdown (3Y)Largest decline over 3 years | -6.35% | -6.20% | -0.15% |
Max Drawdown (5Y)Largest decline over 5 years | -17.18% | -19.38% | +2.20% |
Max Drawdown (10Y)Largest decline over 10 years | -17.18% | -19.38% | +2.20% |
Current DrawdownCurrent decline from peak | -0.67% | -0.35% | -0.32% |
Average DrawdownAverage peak-to-trough decline | -5.52% | -4.79% | -0.73% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.17% | 1.03% | +0.14% |
Volatility
AACTX vs. VTWNX - Volatility Comparison
The current volatility for American Funds 2020 Target Date Retirement Fund (AACTX) is 2.05%, while Vanguard Target Retirement 2020 Fund (VTWNX) has a volatility of 2.23%. This indicates that AACTX experiences smaller price fluctuations and is considered to be less risky than VTWNX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| AACTX | VTWNX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.05% | 2.23% | -0.18% |
Volatility (6M)Calculated over the trailing 6-month period | 4.79% | 4.74% | +0.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.94% | 5.64% | +0.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.50% | 7.44% | +0.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.78% | 8.29% | -0.51% |
AACTX vs. VTWNX - Expense Ratio Comparison
AACTX has a 0.33% expense ratio, which is higher than VTWNX's 0.08% expense ratio.
Dividends
AACTX vs. VTWNX - Dividend Comparison
AACTX's dividend yield for the trailing twelve months is around 7.48%, less than VTWNX's 7.83% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AACTX American Funds 2020 Target Date Retirement Fund | 7.48% | 7.80% | 5.18% | 3.25% | 3.95% | 6.30% | 4.22% | 3.96% | 4.16% | 2.52% | 2.99% | 4.12% |
VTWNX Vanguard Target Retirement 2020 Fund | 7.83% | 8.20% | 9.35% | 6.20% | 4.99% | 19.57% | 6.28% | 3.54% | 4.94% | 0.73% | 2.74% | 4.15% |
Frequently Asked Questions
With a correlation of 0.95, AACTX and VTWNX 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.
VTWNX has higher volatility (2.23%) compared to AACTX (2.05%). In terms of maximum drawdown, AACTX dropped -46.28% vs VTWNX's -42.16%.
VTWNX currently has the higher Sharpe Ratio (2.24 vs 2.11), 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.
Find the right allocation for AACTX and VTWNX
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer