AAFTX vs. SPY
Compare and contrast key facts about American Funds 2035 Target Date Retirement Fund (AAFTX) and State Street SPDR S&P 500 ETF (SPY).
AAFTX is managed by American Funds. It was launched on Jan 31, 2007. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993.
Performance
AAFTX vs. SPY - Performance Comparison
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AAFTX vs. SPY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AAFTX American Funds 2035 Target Date Retirement Fund | -1.92% | 16.77% | 12.40% | 16.50% | -16.53% | 15.20% | 17.23% | 22.81% | -5.48% | 20.68% |
SPY State Street SPDR S&P 500 ETF | -3.65% | 17.72% | 24.89% | 26.18% | -18.18% | 28.73% | 18.33% | 31.22% | -4.57% | 21.71% |
Returns By Period
In the year-to-date period, AAFTX achieves a -1.92% return, which is significantly higher than SPY's -3.65% return. Over the past 10 years, AAFTX has underperformed SPY with an annualized return of 9.73%, while SPY has yielded a comparatively higher 14.06% annualized return.
AAFTX
- 1D
- 1.89%
- 1M
- -4.70%
- YTD
- -1.92%
- 6M
- 0.05%
- 1Y
- 13.81%
- 3Y*
- 12.60%
- 5Y*
- 6.63%
- 10Y*
- 9.73%
SPY
- 1D
- 0.75%
- 1M
- -4.28%
- YTD
- -3.65%
- 6M
- -1.42%
- 1Y
- 18.14%
- 3Y*
- 18.48%
- 5Y*
- 11.86%
- 10Y*
- 14.06%
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AAFTX vs. SPY - Expense Ratio Comparison
AAFTX has a 0.33% expense ratio, which is higher than SPY's 0.09% expense ratio.
Return for Risk
AAFTX vs. SPY — Risk / Return Rank
AAFTX
SPY
AAFTX vs. SPY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2035 Target Date Retirement Fund (AAFTX) and State Street SPDR S&P 500 ETF (SPY). 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 | SPY | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.33 | 0.96 | +0.37 |
Sortino ratioReturn per unit of downside risk | 1.96 | 1.49 | +0.46 |
Omega ratioGain probability vs. loss probability | 1.28 | 1.23 | +0.05 |
Calmar ratioReturn relative to maximum drawdown | 1.91 | 1.53 | +0.38 |
Martin ratioReturn relative to average drawdown | 8.22 | 7.27 | +0.95 |
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 | SPY | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.33 | 0.96 | +0.37 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.58 | 0.70 | -0.11 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.77 | 0.79 | -0.02 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 0.56 | -0.06 |
Correlation
The correlation between AAFTX and SPY is 0.95, 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.
Dividends
AAFTX vs. SPY - Dividend Comparison
AAFTX's dividend yield for the trailing twelve months is around 6.10%, more than SPY's 1.13% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAFTX American Funds 2035 Target Date Retirement Fund | 6.10% | 5.99% | 4.26% | 2.61% | 5.43% | 5.25% | 3.53% | 4.21% | 4.80% | 2.38% | 3.52% | 5.63% |
SPY State Street SPDR S&P 500 ETF | 1.13% | 1.07% | 1.21% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% |
Drawdowns
AAFTX vs. SPY - Drawdown Comparison
The maximum AAFTX drawdown since its inception was -49.89%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for AAFTX and SPY.
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Drawdown Indicators
| AAFTX | SPY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -49.89% | -55.19% | +5.30% |
Max Drawdown (1Y)Largest decline over 1 year | -7.54% | -12.05% | +4.51% |
Max Drawdown (5Y)Largest decline over 5 years | -23.31% | -24.50% | +1.19% |
Max Drawdown (10Y)Largest decline over 10 years | -26.72% | -33.72% | +7.00% |
Current DrawdownCurrent decline from peak | -5.23% | -5.53% | +0.30% |
Average DrawdownAverage peak-to-trough decline | -6.85% | -9.09% | +2.24% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.75% | 2.54% | -0.79% |
Volatility
AAFTX vs. SPY - Volatility Comparison
The current volatility for American Funds 2035 Target Date Retirement Fund (AAFTX) is 4.03%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 5.35%. This indicates that AAFTX experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AAFTX | SPY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.03% | 5.35% | -1.32% |
Volatility (6M)Calculated over the trailing 6-month period | 6.60% | 9.50% | -2.90% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.79% | 19.06% | -8.27% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.43% | 17.06% | -5.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.71% | 17.92% | -5.21% |