AAFTX vs. VGT
Compare and contrast key facts about American Funds 2035 Target Date Retirement Fund (AAFTX) and Vanguard Information Technology ETF (VGT).
AAFTX is managed by American Funds. It was launched on Jan 31, 2007. VGT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. It was launched on Jan 26, 2004.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: AAFTX or VGT.
Key characteristics
| AAFTX | VGT | |
|---|---|---|
| YTD Return | 3.48% | 2.61% |
| 1Y Return | 14.13% | 33.75% |
| 3Y Return (Ann) | 2.55% | 9.36% |
| 5Y Return (Ann) | 8.07% | 19.53% |
| 10Y Return (Ann) | 8.14% | 19.98% |
| Sharpe Ratio | 1.75 | 1.96 |
| Daily Std Dev | 8.69% | 18.17% |
| Max Drawdown | -48.60% | -54.63% |
| Current Drawdown | -2.37% | -6.33% |
Correlation
The correlation between AAFTX and VGT is 0.85, 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
AAFTX vs. VGT - Performance Comparison
In the year-to-date period, AAFTX achieves a 3.48% return, which is significantly higher than VGT's 2.61% return. Over the past 10 years, AAFTX has underperformed VGT with an annualized return of 8.14%, while VGT has yielded a comparatively higher 19.98% 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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AAFTX vs. VGT - Expense Ratio Comparison
AAFTX has a 0.33% expense ratio, which is higher than VGT's 0.10% expense ratio.
Risk-Adjusted Performance
AAFTX vs. VGT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2035 Target Date Retirement Fund (AAFTX) and Vanguard Information Technology ETF (VGT). 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
AAFTX vs. VGT - Dividend Comparison
AAFTX's dividend yield for the trailing twelve months is around 2.52%, more than VGT's 0.73% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAFTX American Funds 2035 Target Date Retirement Fund | 2.52% | 2.61% | 5.43% | 5.25% | 3.53% | 4.21% | 4.80% | 2.38% | 3.52% | 5.63% | 4.70% | 3.29% |
VGT Vanguard Information Technology ETF | 0.73% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% | 1.12% | 1.05% |
Drawdowns
AAFTX vs. VGT - Drawdown Comparison
The maximum AAFTX drawdown since its inception was -48.60%, smaller than the maximum VGT drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for AAFTX and VGT. For additional features, visit the drawdowns tool.
Volatility
AAFTX vs. VGT - Volatility Comparison
The current volatility for American Funds 2035 Target Date Retirement Fund (AAFTX) is 2.59%, while Vanguard Information Technology ETF (VGT) has a volatility of 5.64%. This indicates that AAFTX experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.