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AAGTX vs. AIVSX
Performance
Return for Risk
Dividends
Drawdowns
Volatility

Performance

AAGTX vs. AIVSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2040 Target Date Retirement Fund (AAGTX) and American Funds Investment Company of America Class A (AIVSX). The values are adjusted to include any dividend payments, if applicable.

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AAGTX vs. AIVSX - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
AAGTX
American Funds 2040 Target Date Retirement Fund
-1.78%19.16%14.37%18.95%-17.80%16.51%18.41%23.94%-5.86%21.63%
AIVSX
American Funds Investment Company of America Class A
-4.18%20.47%24.90%28.56%-15.50%25.10%14.47%24.10%-8.21%19.54%

Returns By Period

In the year-to-date period, AAGTX achieves a -1.78% return, which is significantly higher than AIVSX's -4.18% return. Over the past 10 years, AAGTX has underperformed AIVSX with an annualized return of 10.62%, while AIVSX has yielded a comparatively higher 12.96% annualized return.


AAGTX

1D
0.80%
1M
-3.30%
YTD
-1.78%
6M
0.37%
1Y
16.98%
3Y*
14.67%
5Y*
7.72%
10Y*
10.62%

AIVSX

1D
0.72%
1M
-4.09%
YTD
-4.18%
6M
-2.66%
1Y
17.88%
3Y*
20.34%
5Y*
12.62%
10Y*
12.96%
*Multi-year figures are annualized to reflect compound growth (CAGR)

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AAGTX vs. AIVSX - Expense Ratio Comparison

AAGTX has a 0.33% expense ratio, which is lower than AIVSX's 0.57% expense ratio.


Return for Risk

AAGTX vs. AIVSX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AAGTX
AAGTX Risk / Return Rank: 6868
Overall Rank
AAGTX Sharpe Ratio Rank: 6565
Sharpe Ratio Rank
AAGTX Sortino Ratio Rank: 6969
Sortino Ratio Rank
AAGTX Omega Ratio Rank: 6363
Omega Ratio Rank
AAGTX Calmar Ratio Rank: 7171
Calmar Ratio Rank
AAGTX Martin Ratio Rank: 7575
Martin Ratio Rank

AIVSX
AIVSX Risk / Return Rank: 5454
Overall Rank
AIVSX Sharpe Ratio Rank: 4747
Sharpe Ratio Rank
AIVSX Sortino Ratio Rank: 5151
Sortino Ratio Rank
AIVSX Omega Ratio Rank: 4949
Omega Ratio Rank
AIVSX Calmar Ratio Rank: 6262
Calmar Ratio Rank
AIVSX Martin Ratio Rank: 6262
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AAGTX vs. AIVSX - 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 Investment Company of America Class A (AIVSX). 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.


AAGTXAIVSXDifference

Sharpe ratio

Return per unit of total volatility

1.32

1.06

+0.26

Sortino ratio

Return per unit of downside risk

1.95

1.62

+0.33

Omega ratio

Gain probability vs. loss probability

1.27

1.23

+0.04

Calmar ratio

Return relative to maximum drawdown

1.95

1.77

+0.18

Martin ratio

Return relative to average drawdown

8.48

7.25

+1.23

AAGTX vs. AIVSX - Sharpe Ratio Comparison

The current AAGTX Sharpe Ratio is 1.32, which is comparable to the AIVSX Sharpe Ratio of 1.06. The chart below compares the historical Sharpe Ratios of AAGTX and AIVSX, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.


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Sharpe Ratios by Period


AAGTXAIVSXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.32

1.06

+0.26

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.59

0.79

-0.21

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.76

0.79

-0.03

Sharpe Ratio (All Time)

Calculated using the full available price history

0.51

0.67

-0.17

Correlation

The correlation between AAGTX and AIVSX is 0.97, 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. AIVSX - Dividend Comparison

AAGTX's dividend yield for the trailing twelve months is around 6.06%, less than AIVSX's 11.09% yield.


TTM20252024202320222021202020192018201720162015
AAGTX
American Funds 2040 Target Date Retirement Fund
6.06%5.95%3.50%2.51%6.40%4.94%3.26%4.29%4.94%2.42%3.59%5.12%
AIVSX
American Funds Investment Company of America Class A
11.09%10.60%9.29%4.96%6.12%6.94%1.65%6.15%9.61%7.08%5.48%8.95%

Drawdowns

AAGTX vs. AIVSX - Drawdown Comparison

The maximum AAGTX drawdown since its inception was -50.03%, roughly equal to the maximum AIVSX drawdown of -50.90%. Use the drawdown chart below to compare losses from any high point for AAGTX and AIVSX.


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Drawdown Indicators


AAGTXAIVSXDifference

Max Drawdown

Largest peak-to-trough decline

-50.03%

-50.90%

+0.87%

Max Drawdown (1Y)

Largest decline over 1 year

-8.42%

-10.08%

+1.66%

Max Drawdown (5Y)

Largest decline over 5 years

-25.09%

-24.31%

-0.78%

Max Drawdown (10Y)

Largest decline over 10 years

-28.54%

-31.09%

+2.55%

Current Drawdown

Current decline from peak

-5.53%

-6.67%

+1.14%

Average Drawdown

Average peak-to-trough decline

-7.04%

-5.93%

-1.11%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.12%

2.62%

-0.50%

Volatility

AAGTX vs. AIVSX - Volatility Comparison

The current volatility for American Funds 2040 Target Date Retirement Fund (AAGTX) is 4.68%, while American Funds Investment Company of America Class A (AIVSX) has a volatility of 5.75%. This indicates that AAGTX experiences smaller price fluctuations and is considered to be less risky than AIVSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


AAGTXAIVSXDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.68%

5.75%

-1.07%

Volatility (6M)

Calculated over the trailing 6-month period

8.09%

9.95%

-1.86%

Volatility (1Y)

Calculated over the trailing 1-year period

13.37%

17.57%

-4.20%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

13.24%

15.96%

-2.72%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.08%

16.55%

-2.47%