AAGTX vs. ABALX
Compare and contrast key facts about American Funds 2040 Target Date Retirement Fund (AAGTX) and American Funds American Balanced Fund Class A (ABALX).
AAGTX is managed by American Funds. It was launched on Jan 31, 2007. ABALX is managed by American Funds. It was launched on Jul 26, 1975.
Performance
AAGTX vs. ABALX - Performance Comparison
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AAGTX vs. ABALX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AAGTX American Funds 2040 Target Date Retirement Fund | -2.57% | 19.16% | 14.37% | 18.95% | -17.80% | 16.51% | 18.41% | 23.94% | -5.86% | 21.63% |
ABALX American Funds American Balanced Fund Class A | -1.12% | 18.45% | 14.63% | 13.65% | -12.13% | 15.75% | 10.85% | 18.60% | -3.35% | 14.69% |
Returns By Period
In the year-to-date period, AAGTX achieves a -2.57% return, which is significantly lower than ABALX's -1.12% return. Over the past 10 years, AAGTX has outperformed ABALX with an annualized return of 10.53%, while ABALX has yielded a comparatively lower 9.17% annualized return.
AAGTX
- 1D
- 2.33%
- 1M
- -5.61%
- YTD
- -2.57%
- 6M
- -0.22%
- 1Y
- 16.61%
- 3Y*
- 14.37%
- 5Y*
- 7.55%
- 10Y*
- 10.53%
ABALX
- 1D
- 1.79%
- 1M
- -4.88%
- YTD
- -1.12%
- 6M
- 2.08%
- 1Y
- 16.95%
- 3Y*
- 14.07%
- 5Y*
- 8.20%
- 10Y*
- 9.17%
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AAGTX vs. ABALX - Expense Ratio Comparison
AAGTX has a 0.33% expense ratio, which is lower than ABALX's 0.56% expense ratio.
Return for Risk
AAGTX vs. ABALX — Risk / Return Rank
AAGTX
ABALX
AAGTX vs. ABALX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2040 Target Date Retirement Fund (AAGTX) and American Funds American Balanced Fund Class A (ABALX). 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.
| AAGTX | ABALX | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.28 | 1.56 | -0.27 |
Sortino ratioReturn per unit of downside risk | 1.90 | 2.28 | -0.38 |
Omega ratioGain probability vs. loss probability | 1.27 | 1.32 | -0.05 |
Calmar ratioReturn relative to maximum drawdown | 1.85 | 2.43 | -0.59 |
Martin ratioReturn relative to average drawdown | 8.15 | 10.15 | -2.00 |
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
| AAGTX | ABALX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.28 | 1.56 | -0.27 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.57 | 0.79 | -0.22 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.75 | 0.87 | -0.12 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 0.79 | -0.29 |
Correlation
The correlation between AAGTX and ABALX is 0.96, 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
AAGTX vs. ABALX - Dividend Comparison
AAGTX's dividend yield for the trailing twelve months is around 6.11%, less than ABALX's 8.39% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAGTX American Funds 2040 Target Date Retirement Fund | 6.11% | 5.95% | 3.50% | 2.51% | 6.40% | 4.94% | 3.26% | 4.29% | 4.94% | 2.42% | 3.59% | 5.12% |
ABALX American Funds American Balanced Fund Class A | 8.39% | 8.27% | 6.87% | 2.05% | 2.30% | 4.30% | 4.35% | 3.49% | 5.49% | 4.72% | 4.24% | 5.60% |
Drawdowns
AAGTX vs. ABALX - Drawdown Comparison
The maximum AAGTX drawdown since its inception was -50.03%, which is greater than ABALX's maximum drawdown of -40.20%. Use the drawdown chart below to compare losses from any high point for AAGTX and ABALX.
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Drawdown Indicators
| AAGTX | ABALX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -50.03% | -40.20% | -9.83% |
Max Drawdown (1Y)Largest decline over 1 year | -9.25% | -7.33% | -1.92% |
Max Drawdown (5Y)Largest decline over 5 years | -25.09% | -18.76% | -6.33% |
Max Drawdown (10Y)Largest decline over 10 years | -28.54% | -22.34% | -6.20% |
Current DrawdownCurrent decline from peak | -6.28% | -5.37% | -0.91% |
Average DrawdownAverage peak-to-trough decline | -7.05% | -3.86% | -3.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.10% | 1.76% | +0.34% |
Volatility
AAGTX vs. ABALX - Volatility Comparison
American Funds 2040 Target Date Retirement Fund (AAGTX) has a higher volatility of 4.78% compared to American Funds American Balanced Fund Class A (ABALX) at 3.89%. This indicates that AAGTX's price experiences larger fluctuations and is considered to be riskier than ABALX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AAGTX | ABALX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.78% | 3.89% | +0.89% |
Volatility (6M)Calculated over the trailing 6-month period | 8.05% | 6.96% | +1.09% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.35% | 11.22% | +2.13% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.24% | 10.45% | +2.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.09% | 10.63% | +3.46% |