AAFTX vs. AIVSX
AAFTX (American Funds 2035 Target Date Retirement Fund) and AIVSX (American Funds Investment Company of America Class A) are both mutual funds - AAFTX is a Target Retirement Date fund managed by American Funds, while AIVSX is a Large Cap Blend Equities fund managed by American Funds. Over the past 10 years, AAFTX returned 10.36%/yr vs 14.19%/yr for AIVSX. With a 0.97 correlation, they move nearly in lockstep. AAFTX charges 0.33%/yr vs 0.57%/yr for AIVSX.
Performance
AAFTX vs. AIVSX - Performance Comparison
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Returns By Period
In the year-to-date period, AAFTX achieves a 6.62% return, which is significantly lower than AIVSX's 10.14% return. Over the past 10 years, AAFTX has underperformed AIVSX with an annualized return of 10.36%, while AIVSX has yielded a comparatively higher 14.19% annualized return.
AAFTX
- 1D
- -0.45%
- 1M
- 2.16%
- YTD
- 6.62%
- 6M
- 7.08%
- 1Y
- 17.54%
- 3Y*
- 15.07%
- 5Y*
- 7.56%
- 10Y*
- 10.36%
AIVSX
- 1D
- -0.69%
- 1M
- 3.82%
- YTD
- 10.14%
- 6M
- 10.06%
- 1Y
- 25.27%
- 3Y*
- 23.93%
- 5Y*
- 14.69%
- 10Y*
- 14.19%
AAFTX vs. AIVSX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AAFTX American Funds 2035 Target Date Retirement Fund | 6.62% | 16.77% | 12.40% | 16.50% | -16.53% | 15.20% | 17.23% | 22.81% | -5.48% | 20.68% |
AIVSX American Funds Investment Company of America Class A | 10.14% | 20.47% | 24.90% | 28.56% | -15.50% | 25.10% | 14.47% | 24.10% | -8.21% | 19.54% |
Correlation
The correlation between AAFTX and AIVSX 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 | 0.96 |
Correlation (All Time) Calculated using the full available price history since Feb 5, 2007 | 0.97 |
The correlation between AAFTX and AIVSX has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.
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Return for Risk
AAFTX vs. AIVSX — Risk / Return Rank
AAFTX
AIVSX
AAFTX vs. AIVSX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2035 Target Date Retirement Fund (AAFTX) and American Funds Investment Company of America Class A (AIVSX). 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.
| AAFTX | AIVSX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.05 | ||
| Sortino ratioReturn per unit of downside risk | +0.18 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.38 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 2.58 | 2.57 | +0.01 |
| Martin ratioReturn relative to average drawdown | 11.53 | 11.66 | -0.13 |
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
| AAFTX | AIVSX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.13 | 2.08 | +0.05 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.66 | 0.92 | -0.26 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.82 | 0.86 | -0.04 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.53 | 0.70 | -0.17 |
Drawdowns
AAFTX vs. AIVSX - Drawdown Comparison
The maximum AAFTX drawdown since its inception was -49.89%, roughly equal to the maximum AIVSX drawdown of -50.90%. Use the drawdown chart below to compare losses from any high point for AAFTX and AIVSX.
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Drawdown Indicators
| AAFTX | AIVSX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -49.89% | -50.90% | +1.01% |
Max Drawdown (1Y)Largest decline over 1 year | -6.99% | -10.08% | +3.09% |
Max Drawdown (3Y)Largest decline over 3 years | -10.58% | -17.40% | +6.82% |
Max Drawdown (5Y)Largest decline over 5 years | -23.31% | -24.31% | +1.00% |
Max Drawdown (10Y)Largest decline over 10 years | -26.72% | -31.09% | +4.37% |
Current DrawdownCurrent decline from peak | -0.45% | -0.69% | +0.24% |
Average DrawdownAverage peak-to-trough decline | -6.80% | -5.91% | -0.89% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.56% | 2.22% | -0.66% |
Volatility
AAFTX vs. AIVSX - Volatility Comparison
The current volatility for American Funds 2035 Target Date Retirement Fund (AAFTX) is 2.58%, while American Funds Investment Company of America Class A (AIVSX) has a volatility of 3.36%. This indicates that AAFTX experiences smaller price fluctuations and is considered to be less risky than AIVSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AAFTX | AIVSX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.58% | 3.36% | -0.78% |
Volatility (6M)Calculated over the trailing 6-month period | 6.74% | 9.69% | -2.95% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.48% | 12.47% | -3.99% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.44% | 16.00% | -4.56% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.71% | 16.58% | -3.87% |
AAFTX vs. AIVSX - Expense Ratio Comparison
AAFTX has a 0.33% expense ratio, which is lower than AIVSX's 0.57% expense ratio.
Dividends
AAFTX vs. AIVSX - Dividend Comparison
AAFTX's dividend yield for the trailing twelve months is around 5.62%, less than AIVSX's 9.65% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAFTX American Funds 2035 Target Date Retirement Fund | 5.62% | 5.99% | 4.26% | 2.61% | 5.43% | 5.25% | 3.53% | 4.21% | 4.80% | 2.38% | 3.52% | 5.63% |
AIVSX American Funds Investment Company of America Class A | 9.65% | 10.60% | 9.29% | 4.96% | 6.12% | 6.94% | 1.65% | 6.15% | 9.61% | 7.08% | 5.48% | 8.95% |
Frequently Asked Questions
With a correlation of 0.95, AAFTX and AIVSX 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.
AIVSX has higher volatility (3.36%) compared to AAFTX (2.58%). In terms of maximum drawdown, AAFTX dropped -49.89% vs AIVSX's -50.90%.
AAFTX currently has the higher Sharpe Ratio (2.13 vs 2.08), 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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