AAGTX vs. FXAIX
Compare and contrast key facts about American Funds 2040 Target Date Retirement Fund (AAGTX) and Fidelity 500 Index Fund (FXAIX).
AAGTX is managed by American Funds. It was launched on Jan 31, 2007. FXAIX is managed by Fidelity.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: AAGTX or FXAIX.
Key characteristics
| AAGTX | FXAIX | |
|---|---|---|
| YTD Return | 15.81% | 24.10% |
| 1Y Return | 31.01% | 40.59% |
| 3Y Return (Ann) | 4.82% | 10.56% |
| 5Y Return (Ann) | 10.95% | 16.17% |
| 10Y Return (Ann) | 9.55% | 13.69% |
| Sharpe Ratio | 2.95 | 3.13 |
| Sortino Ratio | 4.10 | 4.14 |
| Omega Ratio | 1.55 | 1.58 |
| Calmar Ratio | 1.93 | 3.35 |
| Martin Ratio | 20.72 | 20.84 |
| Ulcer Index | 1.45% | 1.86% |
| Daily Std Dev | 10.16% | 12.33% |
| Max Drawdown | -48.78% | -33.79% |
| Current Drawdown | -0.70% | -0.18% |
Correlation
The correlation between AAGTX and FXAIX 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.
Performance
AAGTX vs. FXAIX - Performance Comparison
In the year-to-date period, AAGTX achieves a 15.81% return, which is significantly lower than FXAIX's 24.10% return. Over the past 10 years, AAGTX has underperformed FXAIX with an annualized return of 9.55%, while FXAIX has yielded a comparatively higher 13.69% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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AAGTX vs. FXAIX - Expense Ratio Comparison
AAGTX has a 0.33% expense ratio, which is higher than FXAIX's 0.02% expense ratio.
Risk-Adjusted Performance
AAGTX vs. FXAIX - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2040 Target Date Retirement Fund (AAGTX) and Fidelity 500 Index Fund (FXAIX). 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.
Dividends
AAGTX vs. FXAIX - Dividend Comparison
AAGTX's dividend yield for the trailing twelve months is around 2.17%, more than FXAIX's 1.24% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAGTX American Funds 2040 Target Date Retirement Fund | 2.17% | 2.51% | 6.40% | 4.94% | 3.26% | 4.29% | 4.94% | 2.42% | 3.59% | 5.12% | 4.84% | 3.35% |
FXAIX Fidelity 500 Index Fund | 1.24% | 1.45% | 1.69% | 1.22% | 1.60% | 2.06% | 2.72% | 1.97% | 2.52% | 2.83% | 2.63% | 1.84% |
Drawdowns
AAGTX vs. FXAIX - Drawdown Comparison
The maximum AAGTX drawdown since its inception was -48.78%, which is greater than FXAIX's maximum drawdown of -33.79%. Use the drawdown chart below to compare losses from any high point for AAGTX and FXAIX. For additional features, visit the drawdowns tool.
Volatility
AAGTX vs. FXAIX - Volatility Comparison
The current volatility for American Funds 2040 Target Date Retirement Fund (AAGTX) is 2.07%, while Fidelity 500 Index Fund (FXAIX) has a volatility of 2.56%. This indicates that AAGTX experiences smaller price fluctuations and is considered to be less risky than FXAIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.