AAGTX vs. AGTHX
AAGTX (American Funds 2040 Target Date Retirement Fund Class A) and AGTHX (American Funds The Growth Fund of America Class A) are both mutual funds - AAGTX is a Target Retirement Date fund actively managed by American Funds, while AGTHX is a Large Cap Growth Equities fund actively managed by Capital Group. Both are actively managed. Over the past 10 years, AAGTX returned 11.13%/yr vs 15.26%/yr for AGTHX. Their 0.96 correlation means they have historically moved very closely together. AAGTX charges 0.68%/yr vs 0.59%/yr for AGTHX.
Performance
AAGTX vs. AGTHX - Performance Comparison
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Returns By Period
In the year-to-date period, AAGTX achieves a 8.84% return, which is significantly higher than AGTHX's 7.37% return. Over the past 10 years, AAGTX has underperformed AGTHX with an annualized return of 11.13%, while AGTHX has yielded a comparatively higher 15.26% annualized return.
AAGTX
- 1D
- 0.77%
- 1M
- 0.20%
- 6M
- 6.56%
- YTD
- 8.84%
- 1Y
- 16.46%
- 3Y*
- 16.45%
- 5Y*
- 8.62%
- 10Y*
- 11.13%
- ALL TIME*
- 8.47%
AGTHX
- 1D
- 1.67%
- 1M
- -0.48%
- 6M
- 8.48%
- YTD
- 7.37%
- 1Y
- 13.84%
- 3Y*
- 21.75%
- 5Y*
- 10.60%
- 10Y*
- 15.26%
- ALL TIME*
- 13.07%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $0.00 | $0.00 | $0.00 | |
| $0.00 | $0.00 | $0.00 |
AAGTX vs. AGTHX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AAGTX American Funds 2040 Target Date Retirement Fund Class A | 8.84% | 19.16% | 14.37% | 18.95% | -17.80% | 16.51% | 18.41% | 23.94% | -5.86% | 21.63% |
AGTHX American Funds The Growth Fund of America Class A | 7.37% | 19.73% | 28.02% | 37.22% | -30.75% | 19.32% | 37.83% | 28.16% | -3.15% | 26.14% |
Correlation
The correlation between AAGTX and AGTHX is 0.95 - they have historically moved very closely together. At this level, their price movements offset little of one another.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.95 |
Correlation (3Y) Balances recent behavior with more history. | 0.95 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.96 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.95 |
Correlation (All Time) Calculated using the full available price history since Feb 2, 2007 | 0.96 |
The correlation between AAGTX and AGTHX has been stable across timeframes, ranging from 0.95 to 0.96 - a consistent structural relationship.
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Return for Risk
AAGTX vs. AGTHX — Risk / Return Rank
AAGTX
AGTHX
AAGTX vs. AGTHX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2040 Target Date Retirement Fund Class A (AAGTX) and American Funds The Growth Fund of America Class A (AGTHX). 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.
| AAGTX | AGTHX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.68 | ||
| Sortino ratioReturn per unit of downside risk | +0.92 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.18 | +0.12 |
| Calmar ratioReturn relative to maximum drawdown | 2.16 | 1.18 | +0.98 |
| Martin ratioReturn relative to average drawdown | 9.33 | 4.24 | +5.09 |
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Drawdowns
AAGTX vs. AGTHX - Drawdown Comparison
The maximum AAGTX drawdown since its inception was -50.03%, roughly equal to the maximum AGTHX drawdown of -51.91%. Use the drawdown chart below to compare losses from any high point for AAGTX and AGTHX.
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Drawdown Indicators
| AAGTX | AGTHX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -50.03% | -51.91% | +1.88% |
Max Drawdown (1Y)Largest decline over 1 year | -8.42% | -13.76% | +5.34% |
Max Drawdown (3Y)Largest decline over 3 years | -13.53% | -21.57% | +8.04% |
Max Drawdown (5Y)Largest decline over 5 years | -25.09% | -36.38% | +11.29% |
Max Drawdown (10Y)Largest decline over 10 years | -28.54% | -36.38% | +7.84% |
Current DrawdownCurrent decline from peak | -0.48% | -2.79% | +2.31% |
Average DrawdownAverage peak-to-trough decline | -6.94% | -9.17% | +2.23% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.94% | 3.81% | -1.87% |
Volatility
AAGTX vs. AGTHX - Volatility Comparison
The current volatility for American Funds 2040 Target Date Retirement Fund Class A (AAGTX) is 3.07%, while American Funds The Growth Fund of America Class A (AGTHX) has a volatility of 5.24%. This indicates that AAGTX experiences smaller price fluctuations and is considered to be less risky than AGTHX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AAGTX | AGTHX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.07% | 5.24% | -2.17% |
Volatility (6M)Calculated over the trailing 6-month period | 9.05% | 13.73% | -4.68% |
Volatility (1Y)Calculated over the trailing 1-year period | 11.14% | 16.96% | -5.82% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.40% | 20.54% | -7.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.09% | 19.78% | -5.69% |
AAGTX vs. AGTHX - Expense Ratio Comparison
AAGTX has a 0.68% expense ratio, which is higher than AGTHX's 0.59% expense ratio.
Dividends
AAGTX vs. AGTHX - Dividend Comparison
AAGTX's dividend yield for the trailing twelve months is around 5.47%, less than AGTHX's 9.96% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAGTX American Funds 2040 Target Date Retirement Fund Class A | 5.47% | 5.95% | 3.50% | 2.51% | 6.40% | 4.94% | 3.26% | 4.29% | 4.94% | 2.42% | 3.59% | 5.12% |
AGTHX American Funds The Growth Fund of America Class A | 9.96% | 10.69% | 8.99% | 7.40% | 4.05% | 8.18% | 4.30% | 7.15% | 11.99% | 7.03% | 6.61% | 8.87% |
Frequently Asked Questions
With a correlation of 0.95, AAGTX and AGTHX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
AGTHX has higher volatility (5.24%) compared to AAGTX (3.07%). In terms of maximum drawdown, AAGTX dropped -50.03% vs AGTHX's -51.91%.
AAGTX currently has the higher Sharpe Ratio (1.63 vs 0.96), 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.
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