AAGTX vs. FRQHX

Last updated Jul 16, 2026

AAGTX (American Funds 2040 Target Date Retirement Fund) and FRQHX (Fidelity Managed Retirement 2010 Fund Class K6) are both Target Retirement Date funds. A 0.78 correlation means they provide meaningful diversification when combined. AAGTX charges 0.33%/yr vs 0.26%/yr for FRQHX.

Performance

AAGTX vs. FRQHX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2040 Target Date Retirement Fund (AAGTX) and Fidelity Managed Retirement 2010 Fund Class K6 (FRQHX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

AAGTX

• 1D: 0.28%
• 1M: -0.84%
• 6M: 5.79%
• YTD: 8.18%
• 1Y: 16.95%
• 3Y*: 15.89%
• 5Y*: 8.74%
• 10Y*: 11.17%

FRQHX

• 1D: —
• 1M: —
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

AAGTX vs. FRQHX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
AAGTX American Funds 2040 Target Date Retirement Fund	8.18%	19.16%	14.37%	18.95%	-17.80%	16.51%	18.41%	7.80%
FRQHX Fidelity Managed Retirement 2010 Fund Class K6	3.71%	10.01%	4.68%	8.75%	-12.22%	4.04%	9.80%	3.95%

Correlation

The correlation between AAGTX and FRQHX is 0.80, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (All Time) Calculated using the full available price history since Aug 1, 2019	0.78

The correlation between AAGTX and FRQHX has been stable across timeframes, ranging from 0.74 to 0.80 - a consistent structural relationship.

Return for Risk

AAGTX vs. FRQHX — Risk / Return Rank

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

AAGTX

AAGTX Risk / Return Rank: 47
AAGTX Sharpe Ratio Rank: 46
AAGTX Sortino Ratio Rank: 46
AAGTX Omega Ratio Rank: 46
AAGTX Calmar Ratio Rank: 42
AAGTX Martin Ratio Rank: 55

FRQHX

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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. FRQHX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2040 Target Date Retirement Fund (AAGTX) and Fidelity Managed Retirement 2010 Fund Class K6 (FRQHX). 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	FRQHX	Difference
Sharpe ratio: Return per unit of total volatility	1.50	—	—
Sortino ratio: Return per unit of downside risk	2.14	—	—
Omega ratio: Gain probability vs. loss probability	1.28	—	—
Calmar ratio: Return relative to maximum drawdown	1.95	—	—
Martin ratio: Return relative to average drawdown	8.61	—	—

Drawdowns

Drawdown Indicators

	AAGTX	FRQHX	Difference
Max Drawdown Largest peak-to-trough decline	-50.03%	—	—
Max Drawdown (1Y) Largest decline over 1 year	-8.42%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-13.53%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-25.09%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-28.54%	—	—
Current Drawdown Current decline from peak	-1.07%	—	—
Average Drawdown Average peak-to-trough decline	-6.96%	—	—
Ulcer Index Depth and duration of drawdowns from previous peaks	1.91%	—	—

Volatility

Volatility by Period

	AAGTX	FRQHX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.02%	—	—
Volatility (6M) Calculated over the trailing 6-month period	8.94%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	10.95%	—	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.39%	—	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.07%	—	—

AAGTX vs. FRQHX - Expense Ratio Comparison

AAGTX has a 0.33% expense ratio, which is higher than FRQHX's 0.26% expense ratio.

Dividends

AAGTX vs. FRQHX - Dividend Comparison

AAGTX's dividend yield for the trailing twelve months is around 5.50%, more than FRQHX's 3.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAGTX American Funds 2040 Target Date Retirement Fund	5.50%	5.95%	3.50%	2.51%	6.40%	4.94%	3.26%	4.29%	4.94%	2.42%	3.59%	5.12%
FRQHX Fidelity Managed Retirement 2010 Fund Class K6	3.25%	3.20%	3.20%	2.95%	5.25%	6.22%	3.70%	2.57%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both AAGTX and FRQHX in my portfolio?

AAGTX and FRQHX have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.