AADTX vs. VTIVX

Last updated Jun 4, 2026

AADTX (American Funds 2025 Target Date Retirement Fund) and VTIVX (Vanguard Target Retirement 2045 Fund) are both Target Retirement Date funds. Over the past 10 years, AADTX returned 7.88%/yr vs 11.35%/yr for VTIVX. With a 0.97 correlation, they move nearly in lockstep. AADTX charges 0.34%/yr vs 0.08%/yr for VTIVX.

Performance

AADTX vs. VTIVX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2025 Target Date Retirement Fund (AADTX) and Vanguard Target Retirement 2045 Fund (VTIVX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AADTX achieves a 5.17% return, which is significantly lower than VTIVX's 11.08% return. Over the past 10 years, AADTX has underperformed VTIVX with an annualized return of 7.88%, while VTIVX has yielded a comparatively higher 11.35% annualized return.

AADTX

• 1D: 0.24%
• 1M: 2.12%
• YTD: 5.17%
• 6M: 5.56%
• 1Y: 14.27%
• 3Y*: 11.84%
• 5Y*: 5.87%
• 10Y*: 7.88%

VTIVX

• 1D: 0.31%
• 1M: 4.78%
• YTD: 11.08%
• 6M: 11.92%
• 1Y: 26.04%
• 3Y*: 18.49%
• 5Y*: 9.63%
• 10Y*: 11.35%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AADTX vs. VTIVX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AADTX American Funds 2025 Target Date Retirement Fund	5.17%	14.20%	8.97%	11.57%	-13.04%	11.12%	13.33%	17.35%	-3.74%	14.95%
VTIVX Vanguard Target Retirement 2045 Fund	11.08%	20.01%	13.68%	19.72%	-17.38%	16.16%	16.31%	24.94%	-7.89%	19.16%

Correlation

The correlation between AADTX and VTIVX is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Feb 5, 2007	0.97

The correlation between AADTX and VTIVX has been stable across timeframes, ranging from 0.92 to 0.97 - a consistent structural relationship.

Return for Risk

AADTX vs. VTIVX — Risk / Return Rank

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

AADTX

AADTX Risk / Return Rank: 65
AADTX Sharpe Ratio Rank: 69
AADTX Sortino Ratio Rank: 71
AADTX Omega Ratio Rank: 70
AADTX Calmar Ratio Rank: 52
AADTX Martin Ratio Rank: 62

VTIVX

VTIVX Risk / Return Rank: 71
VTIVX Sharpe Ratio Rank: 75
VTIVX Sortino Ratio Rank: 71
VTIVX Omega Ratio Rank: 68
VTIVX Calmar Ratio Rank: 68
VTIVX Martin Ratio Rank: 74

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.

AADTX vs. VTIVX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2025 Target Date Retirement Fund (AADTX) and Vanguard Target Retirement 2045 Fund (VTIVX). 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.

	AADTX	VTIVX	Difference
Sharpe ratio Return per unit of total volatility	2.41	2.51	-0.10
Sortino ratio Return per unit of downside risk	3.49	3.50	0.00
Omega ratio Gain probability vs. loss probability	1.47	1.46	+0.01
Calmar ratio Return relative to maximum drawdown	2.74	3.18	-0.43
Martin ratio Return relative to average drawdown	12.32	14.06	-1.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AADTX vs. VTIVX - Sharpe Ratio Comparison

The current AADTX Sharpe Ratio is 2.41, which is comparable to the VTIVX Sharpe Ratio of 2.51. The chart below compares the historical Sharpe Ratios of AADTX and VTIVX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AADTX	VTIVX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.41	2.51	-0.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.72	0.72	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.89	0.77	+0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.55	-0.05

Drawdowns

AADTX vs. VTIVX - Drawdown Comparison

The maximum AADTX drawdown since its inception was -48.80%, smaller than the maximum VTIVX drawdown of -51.69%. Use the drawdown chart below to compare losses from any high point for AADTX and VTIVX.

Drawdown Indicators

	AADTX	VTIVX	Difference
Max Drawdown Largest peak-to-trough decline	-48.80%	-51.69%	+2.89%
Max Drawdown (1Y) Largest decline over 1 year	-5.30%	-8.30%	+3.00%
Max Drawdown (3Y) Largest decline over 3 years	-6.77%	-13.40%	+6.63%
Max Drawdown (5Y) Largest decline over 5 years	-19.02%	-25.10%	+6.08%
Max Drawdown (10Y) Largest decline over 10 years	-19.24%	-31.42%	+12.18%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-6.15%	-6.33%	+0.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.18%	1.87%	-0.69%

Volatility

AADTX vs. VTIVX - Volatility Comparison

The current volatility for American Funds 2025 Target Date Retirement Fund (AADTX) is 1.96%, while Vanguard Target Retirement 2045 Fund (VTIVX) has a volatility of 3.18%. This indicates that AADTX experiences smaller price fluctuations and is considered to be less risky than VTIVX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AADTX	VTIVX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.96%	3.18%	-1.22%
Volatility (6M) Calculated over the trailing 6-month period	4.89%	8.37%	-3.48%
Volatility (1Y) Calculated over the trailing 1-year period	6.03%	10.50%	-4.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.21%	13.49%	-5.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.93%	14.79%	-5.86%

AADTX vs. VTIVX - Expense Ratio Comparison

AADTX has a 0.34% expense ratio, which is higher than VTIVX's 0.08% expense ratio.

Dividends

AADTX vs. VTIVX - Dividend Comparison

AADTX's dividend yield for the trailing twelve months is around 7.01%, more than VTIVX's 2.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AADTX American Funds 2025 Target Date Retirement Fund	7.01%	7.38%	5.18%	3.05%	3.96%	6.24%	3.58%	3.68%	4.06%	2.38%	3.12%	5.82%
VTIVX Vanguard Target Retirement 2045 Fund	2.25%	2.50%	2.36%	2.27%	2.75%	15.40%	1.90%	2.23%	2.52%	0.04%	2.47%	3.29%

Frequently Asked Questions

Can I hold both AADTX and VTIVX in my portfolio?

With a correlation of 0.93, AADTX and VTIVX 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.

Which is riskier, AADTX or VTIVX?

VTIVX has higher volatility (3.18%) compared to AADTX (1.96%). In terms of maximum drawdown, AADTX dropped -48.80% vs VTIVX's -51.69%.

Which has better risk-adjusted returns?

VTIVX currently has the higher Sharpe Ratio (2.51 vs 2.41), 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.