AAGTX vs. FSNVX

Last updated Apr 2, 2026

Compare and contrast key facts about American Funds 2040 Target Date Retirement Fund (AAGTX) and Fidelity Freedom 2040 Fund Class K (FSNVX).

AAGTX is managed by American Funds. It was launched on Jan 31, 2007. FSNVX is managed by Fidelity. It was launched on Jul 20, 2017.

Performance

AAGTX vs. FSNVX - 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 Freedom 2040 Fund Class K (FSNVX). The values are adjusted to include any dividend payments, if applicable.

AAGTX vs. FSNVX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAGTX American Funds 2040 Target Date Retirement Fund	-2.57%	19.16%	14.37%	18.95%	-17.80%	16.51%	18.41%	23.94%	-5.86%	7.29%
FSNVX Fidelity Freedom 2040 Fund Class K	-0.30%	22.12%	16.08%	20.08%	-18.17%	16.62%	18.44%	25.49%	-8.87%	7.42%

Returns By Period

In the year-to-date period, AAGTX achieves a -2.57% return, which is significantly lower than FSNVX's -0.30% return.

AAGTX

• 1D: 2.33%
• 1M: -5.61%
• YTD: -2.57%
• 6M: -0.22%
• 1Y: 16.61%
• 3Y*: 14.37%
• 5Y*: 7.55%
• 10Y*: 10.53%

FSNVX

• 1D: 2.69%
• 1M: -5.26%
• YTD: -0.30%
• 6M: 2.82%
• 1Y: 20.82%
• 3Y*: 16.63%
• 5Y*: 8.62%
• 10Y*: —

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

AAGTX vs. FSNVX - Expense Ratio Comparison

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

FSNVX

Fidelity Freedom 2040 Fund Class K

AAGTX

American Funds 2040 Target Date Retirement Fund

Return for Risk

AAGTX vs. FSNVX — Risk / Return Rank

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

AAGTX

AAGTX Risk / Return Rank: 74
AAGTX Sharpe Ratio Rank: 71
AAGTX Sortino Ratio Rank: 74
AAGTX Omega Ratio Rank: 69
AAGTX Calmar Ratio Rank: 76
AAGTX Martin Ratio Rank: 81

FSNVX

FSNVX Risk / Return Rank: 79
FSNVX Sharpe Ratio Rank: 78
FSNVX Sortino Ratio Rank: 80
FSNVX Omega Ratio Rank: 78
FSNVX Calmar Ratio Rank: 77
FSNVX Martin Ratio Rank: 82

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. FSNVX - 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 Freedom 2040 Fund Class K (FSNVX). 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	FSNVX	Difference
Sharpe ratio Return per unit of total volatility	1.28	1.48	-0.19
Sortino ratio Return per unit of downside risk	1.90	2.09	-0.19
Omega ratio Gain probability vs. loss probability	1.27	1.31	-0.05
Calmar ratio Return relative to maximum drawdown	1.85	1.91	-0.06
Martin ratio Return relative to average drawdown	8.15	8.52	-0.37
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AAGTX vs. FSNVX - Sharpe Ratio Comparison

The current AAGTX Sharpe Ratio is 1.28, which is comparable to the FSNVX Sharpe Ratio of 1.48. The chart below compares the historical Sharpe Ratios of AAGTX and FSNVX, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	AAGTX	FSNVX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.28	1.48	-0.19
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.57	0.61	-0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.75	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.66	-0.16

Correlation

The correlation between AAGTX and FSNVX 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. FSNVX - Dividend Comparison

AAGTX's dividend yield for the trailing twelve months is around 6.11%, more than FSNVX's 5.10% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAGTX American Funds 2040 Target Date Retirement Fund	6.11%	5.95%	3.50%	2.51%	6.40%	4.94%	3.26%	4.29%	4.94%	2.42%	3.59%	5.12%
FSNVX Fidelity Freedom 2040 Fund Class K	5.10%	5.08%	5.22%	1.85%	12.39%	12.13%	5.74%	6.76%	8.06%	3.10%	0.00%	0.00%

Drawdowns

AAGTX vs. FSNVX - Drawdown Comparison

The maximum AAGTX drawdown since its inception was -50.03%, which is greater than FSNVX's maximum drawdown of -30.96%. Use the drawdown chart below to compare losses from any high point for AAGTX and FSNVX.

Drawdown Indicators

	AAGTX	FSNVX	Difference
Max Drawdown Largest peak-to-trough decline	-50.03%	-30.96%	-19.07%
Max Drawdown (1Y) Largest decline over 1 year	-9.25%	-10.33%	+1.08%
Max Drawdown (5Y) Largest decline over 5 years	-25.09%	-27.21%	+2.12%
Max Drawdown (10Y) Largest decline over 10 years	-28.54%	—	—
Current Drawdown Current decline from peak	-6.28%	-6.25%	-0.03%
Average Drawdown Average peak-to-trough decline	-7.05%	-5.67%	-1.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.10%	2.31%	-0.21%

Volatility

AAGTX vs. FSNVX - Volatility Comparison

The current volatility for American Funds 2040 Target Date Retirement Fund (AAGTX) is 4.78%, while Fidelity Freedom 2040 Fund Class K (FSNVX) has a volatility of 5.96%. This indicates that AAGTX experiences smaller price fluctuations and is considered to be less risky than FSNVX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAGTX	FSNVX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.78%	5.96%	-1.18%
Volatility (6M) Calculated over the trailing 6-month period	8.05%	8.91%	-0.86%
Volatility (1Y) Calculated over the trailing 1-year period	13.35%	14.64%	-1.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.24%	14.30%	-1.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.09%	15.68%	-1.59%