AAFTX vs. VO
Compare and contrast key facts about American Funds 2035 Target Date Retirement Fund (AAFTX) and Vanguard Mid-Cap ETF (VO).
AAFTX is managed by American Funds. It was launched on Jan 31, 2007. VO is a passively managed fund by Vanguard that tracks the performance of the CRSP US Mid Cap 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 VO.
Key characteristics
| AAFTX | VO | |
|---|---|---|
| YTD Return | 3.48% | 3.50% |
| 1Y Return | 14.13% | 19.21% |
| 3Y Return (Ann) | 2.55% | 2.39% |
| 5Y Return (Ann) | 8.07% | 9.30% |
| 10Y Return (Ann) | 8.14% | 9.67% |
| Sharpe Ratio | 1.75 | 1.38 |
| Daily Std Dev | 8.69% | 13.19% |
| Max Drawdown | -48.60% | -58.89% |
| Current Drawdown | -2.37% | -4.46% |
Correlation
The correlation between AAFTX and VO is 0.93, 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. VO - Performance Comparison
The year-to-date returns for both investments are quite close, with AAFTX having a 3.48% return and VO slightly higher at 3.50%. Over the past 10 years, AAFTX has underperformed VO with an annualized return of 8.14%, while VO has yielded a comparatively higher 9.67% 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. VO - Expense Ratio Comparison
AAFTX has a 0.33% expense ratio, which is higher than VO's 0.04% expense ratio.
Risk-Adjusted Performance
AAFTX vs. VO - 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 Mid-Cap ETF (VO). 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. VO - Dividend Comparison
AAFTX's dividend yield for the trailing twelve months is around 2.52%, more than VO's 1.56% 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% |
VO Vanguard Mid-Cap ETF | 1.56% | 1.52% | 1.60% | 1.12% | 1.45% | 1.48% | 1.82% | 1.35% | 1.45% | 1.47% | 1.29% | 1.17% |
Drawdowns
AAFTX vs. VO - Drawdown Comparison
The maximum AAFTX drawdown since its inception was -48.60%, smaller than the maximum VO drawdown of -58.89%. Use the drawdown chart below to compare losses from any high point for AAFTX and VO. For additional features, visit the drawdowns tool.
Volatility
AAFTX vs. VO - Volatility Comparison
The current volatility for American Funds 2035 Target Date Retirement Fund (AAFTX) is 2.59%, while Vanguard Mid-Cap ETF (VO) has a volatility of 3.40%. This indicates that AAFTX experiences smaller price fluctuations and is considered to be less risky than VO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.