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AAGTX vs. AMCPX
Performance
Return for Risk
Dividends
Drawdowns
Volatility

Performance

AAGTX vs. AMCPX - 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 AMCAP Fund Class A (AMCPX). The values are adjusted to include any dividend payments, if applicable.

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AAGTX vs. AMCPX - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
AAGTX
American Funds 2040 Target Date Retirement Fund
-4.79%19.16%14.37%18.95%-17.80%16.51%18.41%23.94%-5.86%21.63%
AMCPX
American Funds AMCAP Fund Class A
-11.82%17.68%21.11%31.04%-28.67%20.57%21.42%26.35%-4.42%22.08%

Returns By Period

In the year-to-date period, AAGTX achieves a -4.79% return, which is significantly higher than AMCPX's -11.82% return. Both investments have delivered pretty close results over the past 10 years, with AAGTX having a 10.28% annualized return and AMCPX not far ahead at 10.59%.


AAGTX

1D
-0.23%
1M
-8.15%
YTD
-4.79%
6M
-2.00%
1Y
14.41%
3Y*
13.49%
5Y*
7.31%
10Y*
10.28%

AMCPX

1D
-0.37%
1M
-10.12%
YTD
-11.82%
6M
-9.34%
1Y
11.06%
3Y*
14.39%
5Y*
6.22%
10Y*
10.59%
*Multi-year figures are annualized to reflect compound growth (CAGR)

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AAGTX vs. AMCPX - Expense Ratio Comparison

AAGTX has a 0.33% expense ratio, which is lower than AMCPX's 0.65% expense ratio.


Return for Risk

AAGTX vs. AMCPX — Risk / Return Rank

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

AAGTX
AAGTX Risk / Return Rank: 6464
Overall Rank
AAGTX Sharpe Ratio Rank: 6363
Sharpe Ratio Rank
AAGTX Sortino Ratio Rank: 6666
Sortino Ratio Rank
AAGTX Omega Ratio Rank: 6262
Omega Ratio Rank
AAGTX Calmar Ratio Rank: 6161
Calmar Ratio Rank
AAGTX Martin Ratio Rank: 6666
Martin Ratio Rank

AMCPX
AMCPX Risk / Return Rank: 2323
Overall Rank
AMCPX Sharpe Ratio Rank: 2323
Sharpe Ratio Rank
AMCPX Sortino Ratio Rank: 2525
Sortino Ratio Rank
AMCPX Omega Ratio Rank: 2525
Omega Ratio Rank
AMCPX Calmar Ratio Rank: 2020
Calmar Ratio Rank
AMCPX Martin Ratio Rank: 2323
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. AMCPX - 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 AMCAP Fund Class A (AMCPX). 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.


AAGTXAMCPXDifference

Sharpe ratio

Return per unit of total volatility

1.10

0.56

+0.54

Sortino ratio

Return per unit of downside risk

1.64

0.94

+0.69

Omega ratio

Gain probability vs. loss probability

1.23

1.13

+0.10

Calmar ratio

Return relative to maximum drawdown

1.39

0.59

+0.80

Martin ratio

Return relative to average drawdown

6.27

2.42

+3.85

AAGTX vs. AMCPX - Sharpe Ratio Comparison

The current AAGTX Sharpe Ratio is 1.10, which is higher than the AMCPX Sharpe Ratio of 0.56. The chart below compares the historical Sharpe Ratios of AAGTX and AMCPX, 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


AAGTXAMCPXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.10

0.56

+0.54

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.56

0.33

+0.23

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.73

0.57

+0.16

Sharpe Ratio (All Time)

Calculated using the full available price history

0.50

0.57

-0.08

Correlation

The correlation between AAGTX and AMCPX 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. AMCPX - Dividend Comparison

AAGTX's dividend yield for the trailing twelve months is around 6.25%, less than AMCPX's 9.90% yield.


TTM20252024202320222021202020192018201720162015
AAGTX
American Funds 2040 Target Date Retirement Fund
6.25%5.95%3.50%2.51%6.40%4.94%3.26%4.29%4.94%2.42%3.59%5.12%
AMCPX
American Funds AMCAP Fund Class A
9.90%8.73%8.19%3.26%7.54%3.43%3.88%4.90%7.84%5.37%3.81%8.86%

Drawdowns

AAGTX vs. AMCPX - Drawdown Comparison

The maximum AAGTX drawdown since its inception was -50.03%, smaller than the maximum AMCPX drawdown of -62.37%. Use the drawdown chart below to compare losses from any high point for AAGTX and AMCPX.


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Drawdown Indicators


AAGTXAMCPXDifference

Max Drawdown

Largest peak-to-trough decline

-50.03%

-62.37%

+12.34%

Max Drawdown (1Y)

Largest decline over 1 year

-9.25%

-14.18%

+4.93%

Max Drawdown (5Y)

Largest decline over 5 years

-25.09%

-36.90%

+11.81%

Max Drawdown (10Y)

Largest decline over 10 years

-28.54%

-36.90%

+8.36%

Current Drawdown

Current decline from peak

-8.42%

-14.18%

+5.76%

Average Drawdown

Average peak-to-trough decline

-7.05%

-9.60%

+2.55%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.06%

3.47%

-1.41%

Volatility

AAGTX vs. AMCPX - Volatility Comparison

The current volatility for American Funds 2040 Target Date Retirement Fund (AAGTX) is 3.94%, while American Funds AMCAP Fund Class A (AMCPX) has a volatility of 5.26%. This indicates that AAGTX experiences smaller price fluctuations and is considered to be less risky than AMCPX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


AAGTXAMCPXDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.94%

5.26%

-1.32%

Volatility (6M)

Calculated over the trailing 6-month period

7.71%

11.06%

-3.35%

Volatility (1Y)

Calculated over the trailing 1-year period

13.18%

19.60%

-6.42%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

13.20%

19.12%

-5.92%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

14.07%

18.63%

-4.56%