AAETX vs. AAGTX
Compare and contrast key facts about American Funds 2030 Target Date Retirement Fund (AAETX) and American Funds 2040 Target Date Retirement Fund (AAGTX).
AAETX is managed by American Funds. It was launched on Jan 31, 2007. AAGTX is managed by American Funds. It was launched on Jan 31, 2007.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: AAETX or AAGTX.
Key characteristics
| AAETX | AAGTX | |
|---|---|---|
| YTD Return | 2.04% | 3.84% |
| 1Y Return | 11.06% | 16.78% |
| 3Y Return (Ann) | 1.80% | 3.06% |
| 5Y Return (Ann) | 6.70% | 8.75% |
| 10Y Return (Ann) | 7.02% | 8.55% |
| Sharpe Ratio | 1.26 | 1.56 |
| Daily Std Dev | 8.80% | 10.60% |
| Max Drawdown | -48.18% | -48.78% |
| Current Drawdown | -2.60% | -3.03% |
Correlation
The correlation between AAETX and AAGTX is 0.99, 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.
Performance
AAETX vs. AAGTX - Performance Comparison
In the year-to-date period, AAETX achieves a 2.04% return, which is significantly lower than AAGTX's 3.84% return. Over the past 10 years, AAETX has underperformed AAGTX with an annualized return of 7.02%, while AAGTX has yielded a comparatively higher 8.55% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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AAETX vs. AAGTX - Expense Ratio Comparison
Both AAETX and AAGTX have an expense ratio of 0.33%.
Risk-Adjusted Performance
AAETX vs. AAGTX - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2030 Target Date Retirement Fund (AAETX) and American Funds 2040 Target Date Retirement Fund (AAGTX). 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.
Dividends
AAETX vs. AAGTX - Dividend Comparison
AAETX's dividend yield for the trailing twelve months is around 2.63%, more than AAGTX's 2.42% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAETX American Funds 2030 Target Date Retirement Fund | 2.63% | 2.69% | 4.39% | 6.47% | 3.57% | 3.95% | 4.46% | 2.46% | 3.46% | 5.52% | 5.04% | 3.43% |
AAGTX American Funds 2040 Target Date Retirement Fund | 2.42% | 2.51% | 6.40% | 4.94% | 3.26% | 4.29% | 4.94% | 2.42% | 3.59% | 5.12% | 4.84% | 3.35% |
Drawdowns
AAETX vs. AAGTX - Drawdown Comparison
The maximum AAETX drawdown since its inception was -48.18%, roughly equal to the maximum AAGTX drawdown of -48.78%. Use the drawdown chart below to compare losses from any high point for AAETX and AAGTX. For additional features, visit the drawdowns tool.
Volatility
AAETX vs. AAGTX - Volatility Comparison
The current volatility for American Funds 2030 Target Date Retirement Fund (AAETX) is 2.52%, while American Funds 2040 Target Date Retirement Fund (AAGTX) has a volatility of 3.36%. This indicates that AAETX experiences smaller price fluctuations and is considered to be less risky than AAGTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.