AAFTX vs. PDAHX

Last updated Jul 17, 2026

AAFTX (American Funds 2035 Target Date Retirement Fund) and PDAHX (Prudential Day One Income Fund) are both Target Retirement Date funds. Over the past 5 years, AAFTX returned 7.61%/yr vs 4.49%/yr for PDAHX. Their correlation of 0.83 suggests significant overlap in exposure. AAFTX charges 0.33%/yr vs 0.16%/yr for PDAHX.

Performance

AAFTX vs. PDAHX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2035 Target Date Retirement Fund (AAFTX) and Prudential Day One Income Fund (PDAHX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAFTX achieves a 6.95% return, which is significantly higher than PDAHX's 5.23% return.

AAFTX

• 1D: 0.45%
• 1M: 0.00%
• 6M: 4.79%
• YTD: 6.95%
• 1Y: 14.16%
• 3Y*: 13.86%
• 5Y*: 7.61%
• 10Y*: 10.17%

PDAHX

• 1D: 0.18%
• 1M: 0.00%
• 6M: 3.95%
• YTD: 5.23%
• 1Y: 10.41%
• 3Y*: 9.11%
• 5Y*: 4.49%
• 10Y*: —

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

AAFTX vs. PDAHX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAFTX American Funds 2035 Target Date Retirement Fund	6.95%	16.77%	12.40%	16.50%	-16.53%	15.20%	17.23%	22.81%	-5.48%	20.68%
PDAHX Prudential Day One Income Fund	5.23%	10.37%	8.27%	8.89%	-11.69%	9.21%	8.22%	13.58%	-3.26%	8.25%

Correlation

The correlation between AAFTX and PDAHX is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (All Time) Calculated using the full available price history since Jan 3, 2017	0.83

The correlation between AAFTX and PDAHX has been stable across timeframes, ranging from 0.83 to 0.86 - a consistent structural relationship.

Return for Risk

AAFTX vs. PDAHX — Risk / Return Rank

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

AAFTX

AAFTX Risk / Return Rank: 53
AAFTX Sharpe Ratio Rank: 53
AAFTX Sortino Ratio Rank: 53
AAFTX Omega Ratio Rank: 54
AAFTX Calmar Ratio Rank: 45
AAFTX Martin Ratio Rank: 58

PDAHX

PDAHX Risk / Return Rank: 86
PDAHX Sharpe Ratio Rank: 87
PDAHX Sortino Ratio Rank: 85
PDAHX Omega Ratio Rank: 84
PDAHX Calmar Ratio Rank: 82
PDAHX Martin Ratio Rank: 91

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.

AAFTX vs. PDAHX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2035 Target Date Retirement Fund (AAFTX) and Prudential Day One Income Fund (PDAHX). 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.

	AAFTX	PDAHX	Difference
Sharpe ratio: Return per unit of total volatility	1.63	2.33	-0.70
Sortino ratio: Return per unit of downside risk	2.32	3.32	-1.00
Omega ratio: Gain probability vs. loss probability	1.30	1.44	-0.14
Calmar ratio: Return relative to maximum drawdown	2.08	3.07	-0.99
Martin ratio: Return relative to average drawdown	9.11	14.08	-4.98

AAFTX vs. PDAHX - Sharpe Ratio Comparison

The current AAFTX Sharpe Ratio is 1.63, which is lower than the PDAHX Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of AAFTX and PDAHX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AAFTX vs. PDAHX - Drawdown Comparison

The maximum AAFTX drawdown since its inception was -49.89%, which is greater than PDAHX's maximum drawdown of -15.65%. Use the drawdown chart below to compare losses from any high point for AAFTX and PDAHX.

Drawdown Indicators

	AAFTX	PDAHX	Difference
Max Drawdown Largest peak-to-trough decline	-49.89%	-15.65%	-34.24%
Max Drawdown (1Y) Largest decline over 1 year	-6.99%	-3.51%	-3.48%
Max Drawdown (3Y) Largest decline over 3 years	-10.58%	-5.61%	-4.97%
Max Drawdown (5Y) Largest decline over 5 years	-23.31%	-15.65%	-7.66%
Max Drawdown (10Y) Largest decline over 10 years	-26.72%	—	—
Current Drawdown Current decline from peak	-0.45%	-0.18%	-0.27%
Average Drawdown Average peak-to-trough decline	-6.76%	-2.64%	-4.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.59%	0.76%	+0.83%

Volatility

AAFTX vs. PDAHX - Volatility Comparison

American Funds 2035 Target Date Retirement Fund (AAFTX) has a higher volatility of 2.38% compared to Prudential Day One Income Fund (PDAHX) at 1.46%. This indicates that AAFTX's price experiences larger fluctuations and is considered to be riskier than PDAHX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAFTX	PDAHX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.38%	1.46%	+0.92%
Volatility (6M) Calculated over the trailing 6-month period	7.32%	3.78%	+3.54%
Volatility (1Y) Calculated over the trailing 1-year period	8.96%	4.65%	+4.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.51%	6.58%	+4.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.64%	6.37%	+6.27%

AAFTX vs. PDAHX - Expense Ratio Comparison

AAFTX has a 0.33% expense ratio, which is higher than PDAHX's 0.16% expense ratio.

Dividends

AAFTX vs. PDAHX - Dividend Comparison

AAFTX's dividend yield for the trailing twelve months is around 5.60%, more than PDAHX's 4.84% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAFTX American Funds 2035 Target Date Retirement Fund	5.60%	5.99%	4.26%	2.61%	5.43%	5.25%	3.53%	4.21%	4.80%	2.38%	3.52%	5.63%
PDAHX Prudential Day One Income Fund	4.84%	4.92%	7.35%	3.54%	7.78%	7.72%	2.22%	4.25%	3.70%	1.88%	0.00%	0.00%

Frequently Asked Questions

Can I hold both AAFTX and PDAHX in my portfolio?

AAFTX and PDAHX have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AAFTX or PDAHX?

AAFTX has higher volatility (2.38%) compared to PDAHX (1.46%). In terms of maximum drawdown, AAFTX dropped -49.89% vs PDAHX's -15.65%.

Which has better risk-adjusted returns?

PDAHX currently has the higher Sharpe Ratio (2.33 vs 1.63), 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.