AAGTX vs. AMECX
Compare and contrast key facts about American Funds 2040 Target Date Retirement Fund (AAGTX) and American Funds The Income Fund of America Class A (AMECX).
AAGTX is managed by American Funds. It was launched on Jan 31, 2007. AMECX is managed by American Funds. It was launched on Dec 1, 1973.
Performance
AAGTX vs. AMECX - Performance Comparison
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AAGTX vs. AMECX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
AMECX American Funds The Income Fund of America Class A | 1.48% | 17.77% | 10.84% | 6.79% | -6.40% | 17.37% | 4.49% | 18.50% | -5.27% | 12.58% |
Returns By Period
In the year-to-date period, AAGTX achieves a -4.79% return, which is significantly lower than AMECX's 1.48% return. Over the past 10 years, AAGTX has outperformed AMECX with an annualized return of 10.28%, while AMECX has yielded a comparatively lower 8.21% annualized return.
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%
AMECX
- 1D
- 0.23%
- 1M
- -5.74%
- YTD
- 1.48%
- 6M
- 4.22%
- 1Y
- 14.19%
- 3Y*
- 11.95%
- 5Y*
- 7.95%
- 10Y*
- 8.21%
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AAGTX vs. AMECX - Expense Ratio Comparison
AAGTX has a 0.33% expense ratio, which is lower than AMECX's 0.56% expense ratio.
Return for Risk
AAGTX vs. AMECX — Risk / Return Rank
AAGTX
AMECX
AAGTX vs. AMECX - 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 The Income Fund of America Class A (AMECX). 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 | AMECX | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.10 | 1.55 | -0.45 |
Sortino ratioReturn per unit of downside risk | 1.64 | 2.13 | -0.49 |
Omega ratioGain probability vs. loss probability | 1.23 | 1.32 | -0.09 |
Calmar ratioReturn relative to maximum drawdown | 1.39 | 1.71 | -0.31 |
Martin ratioReturn relative to average drawdown | 6.27 | 8.01 | -1.74 |
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 | AMECX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.10 | 1.55 | -0.45 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.56 | 0.85 | -0.29 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.73 | 0.77 | -0.04 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 0.72 | -0.22 |
Correlation
The correlation between AAGTX and AMECX is 0.93, 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. AMECX - Dividend Comparison
AAGTX's dividend yield for the trailing twelve months is around 6.25%, less than AMECX's 9.86% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
AMECX American Funds The Income Fund of America Class A | 9.86% | 9.94% | 6.38% | 2.93% | 6.98% | 6.67% | 2.80% | 5.01% | 7.48% | 4.26% | 3.09% | 5.09% |
Drawdowns
AAGTX vs. AMECX - Drawdown Comparison
The maximum AAGTX drawdown since its inception was -50.03%, which is greater than AMECX's maximum drawdown of -41.92%. Use the drawdown chart below to compare losses from any high point for AAGTX and AMECX.
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Drawdown Indicators
| AAGTX | AMECX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -50.03% | -41.92% | -8.11% |
Max Drawdown (1Y)Largest decline over 1 year | -9.25% | -8.19% | -1.06% |
Max Drawdown (5Y)Largest decline over 5 years | -25.09% | -15.78% | -9.31% |
Max Drawdown (10Y)Largest decline over 10 years | -28.54% | -26.13% | -2.41% |
Current DrawdownCurrent decline from peak | -8.42% | -5.74% | -2.68% |
Average DrawdownAverage peak-to-trough decline | -7.05% | -4.46% | -2.59% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.06% | 1.74% | +0.32% |
Volatility
AAGTX vs. AMECX - Volatility Comparison
American Funds 2040 Target Date Retirement Fund (AAGTX) has a higher volatility of 3.94% compared to American Funds The Income Fund of America Class A (AMECX) at 2.94%. This indicates that AAGTX's price experiences larger fluctuations and is considered to be riskier than AMECX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AAGTX | AMECX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.94% | 2.94% | +1.00% |
Volatility (6M)Calculated over the trailing 6-month period | 7.71% | 5.49% | +2.22% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.18% | 9.48% | +3.70% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.20% | 9.44% | +3.76% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.07% | 10.66% | +3.41% |