AAGTX vs. AIVSX
Compare and contrast key facts about American Funds 2040 Target Date Retirement Fund (AAGTX) and American Funds Investment Company of America Class A (AIVSX).
AAGTX is managed by American Funds. It was launched on Jan 31, 2007. AIVSX is managed by American Funds. It was launched on Jan 1, 1934.
Performance
AAGTX vs. AIVSX - Performance Comparison
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AAGTX vs. AIVSX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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%
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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
AAGTX
AIVSX
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.
| AAGTX | AIVSX | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.32 | 1.06 | +0.26 |
Sortino ratioReturn per unit of downside risk | 1.95 | 1.62 | +0.33 |
Omega ratioGain probability vs. loss probability | 1.27 | 1.23 | +0.04 |
Calmar ratioReturn relative to maximum drawdown | 1.95 | 1.77 | +0.18 |
Martin ratioReturn relative to average drawdown | 8.48 | 7.25 | +1.23 |
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 | AIVSX | Difference | |
|---|---|---|---|
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.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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
| AAGTX | AIVSX | Difference | |
|---|---|---|---|
Max DrawdownLargest 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 DrawdownCurrent decline from peak | -5.53% | -6.67% | +1.14% |
Average DrawdownAverage peak-to-trough decline | -7.04% | -5.93% | -1.11% |
Ulcer IndexDepth 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
| AAGTX | AIVSX | Difference | |
|---|---|---|---|
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% |