AAETX vs. VBAIX
AAETX (American Funds 2030 Target Date Retirement Fund) and VBAIX (Vanguard Balanced Index Fund Institutional Shares) are both mutual funds - AAETX is a Target Retirement Date fund managed by American Funds, while VBAIX is a Diversified Portfolio fund managed by Vanguard. Over the past 10 years, AAETX returned 9.05%/yr vs 10.15%/yr for VBAIX. With a 0.95 correlation, they move nearly in lockstep. AAETX charges 0.33%/yr vs 0.06%/yr for VBAIX.
Performance
AAETX vs. VBAIX - Performance Comparison
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Returns By Period
In the year-to-date period, AAETX achieves a 5.95% return, which is significantly lower than VBAIX's 7.40% return. Over the past 10 years, AAETX has underperformed VBAIX with an annualized return of 9.05%, while VBAIX has yielded a comparatively higher 10.15% annualized return.
AAETX
- 1D
- 0.20%
- 1M
- 2.59%
- YTD
- 5.95%
- 6M
- 6.37%
- 1Y
- 16.19%
- 3Y*
- 13.39%
- 5Y*
- 6.75%
- 10Y*
- 9.05%
VBAIX
- 1D
- 0.16%
- 1M
- 3.72%
- YTD
- 7.40%
- 6M
- 7.29%
- 1Y
- 19.41%
- 3Y*
- 16.11%
- 5Y*
- 8.62%
- 10Y*
- 10.15%
AAETX vs. VBAIX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AAETX American Funds 2030 Target Date Retirement Fund | 5.95% | 15.41% | 10.50% | 14.08% | -14.74% | 12.79% | 14.81% | 19.64% | -4.56% | 18.11% |
VBAIX Vanguard Balanced Index Fund Institutional Shares | 7.40% | 13.60% | 17.78% | 17.55% | -16.87% | 14.20% | 16.40% | 21.79% | -2.83% | 13.86% |
Correlation
The correlation between AAETX and VBAIX 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 | 0.96 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
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 | 0.95 |
The correlation between AAETX and VBAIX has been stable across timeframes, ranging from 0.95 to 0.96 - a consistent structural relationship.
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Return for Risk
AAETX vs. VBAIX — Risk / Return Rank
AAETX
VBAIX
AAETX vs. VBAIX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2030 Target Date Retirement Fund (AAETX) and Vanguard Balanced Index Fund Institutional Shares (VBAIX). 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.
| AAETX | VBAIX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.24 | ||
| Sortino ratioReturn per unit of downside risk | -0.29 | ||
| Omega ratioGain probability vs. loss probability | 1.44 | 1.47 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.70 | 3.42 | -0.72 |
| Martin ratioReturn relative to average drawdown | 12.03 | 15.63 | -3.60 |
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
| AAETX | VBAIX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.29 | 2.53 | -0.24 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.70 | 0.78 | -0.08 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.85 | 0.91 | -0.05 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.52 | 0.66 | -0.14 |
Drawdowns
AAETX vs. VBAIX - Drawdown Comparison
The maximum AAETX drawdown since its inception was -49.49%, which is greater than VBAIX's maximum drawdown of -35.82%. Use the drawdown chart below to compare losses from any high point for AAETX and VBAIX.
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Drawdown Indicators
| AAETX | VBAIX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -49.49% | -35.82% | -13.67% |
Max Drawdown (1Y)Largest decline over 1 year | -6.12% | -5.84% | -0.28% |
Max Drawdown (3Y)Largest decline over 3 years | -8.67% | -11.57% | +2.90% |
Max Drawdown (5Y)Largest decline over 5 years | -21.01% | -21.52% | +0.51% |
Max Drawdown (10Y)Largest decline over 10 years | -22.37% | -22.77% | +0.40% |
Current DrawdownCurrent decline from peak | 0.00% | 0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -6.41% | -4.42% | -1.99% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.37% | 1.27% | +0.10% |
Volatility
AAETX vs. VBAIX - Volatility Comparison
American Funds 2030 Target Date Retirement Fund (AAETX) and Vanguard Balanced Index Fund Institutional Shares (VBAIX) have volatilities of 2.22% and 2.26%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AAETX | VBAIX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.22% | 2.26% | -0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 5.76% | 6.11% | -0.35% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.21% | 7.90% | -0.69% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.73% | 11.10% | -1.37% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.66% | 11.23% | -0.57% |
AAETX vs. VBAIX - Expense Ratio Comparison
AAETX has a 0.33% expense ratio, which is higher than VBAIX's 0.06% expense ratio.
Dividends
AAETX vs. VBAIX - Dividend Comparison
AAETX's dividend yield for the trailing twelve months is around 5.97%, more than VBAIX's 5.22% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAETX American Funds 2030 Target Date Retirement Fund | 5.97% | 6.33% | 3.73% | 2.69% | 4.39% | 6.47% | 3.57% | 3.95% | 4.46% | 2.46% | 3.46% | 5.52% |
VBAIX Vanguard Balanced Index Fund Institutional Shares | 5.22% | 6.01% | 8.01% | 4.36% | 2.84% | 3.20% | 2.65% | 2.29% | 2.33% | 1.96% | 2.10% | 2.10% |
Frequently Asked Questions
With a correlation of 0.95, AAETX and VBAIX 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.
VBAIX has higher volatility (2.26%) compared to AAETX (2.22%). In terms of maximum drawdown, AAETX dropped -49.49% vs VBAIX's -35.82%.
VBAIX currently has the higher Sharpe Ratio (2.53 vs 2.29), 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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