AAGTX vs. LTTIX
AAGTX (American Funds 2040 Target Date Retirement Fund) and LTTIX (MFS Lifetime 2025 Fund) are both Target Retirement Date funds. Over the past 10 years, AAGTX returned 11.66%/yr vs 6.24%/yr for LTTIX. Their correlation of 0.91 suggests significant overlap in exposure. AAGTX charges 0.33%/yr vs 0.00%/yr for LTTIX.
Performance
AAGTX vs. LTTIX - Performance Comparison
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Returns By Period
In the year-to-date period, AAGTX achieves a 7.36% return, which is significantly higher than LTTIX's 2.74% return. Over the past 10 years, AAGTX has outperformed LTTIX with an annualized return of 11.66%, while LTTIX has yielded a comparatively lower 6.24% annualized return.
AAGTX
- 1D
- -1.16%
- 1M
- 0.33%
- YTD
- 7.36%
- 6M
- 6.71%
- 1Y
- 18.04%
- 3Y*
- 16.89%
- 5Y*
- 8.60%
- 10Y*
- 11.66%
LTTIX
- 1D
- 0.00%
- 1M
- 0.08%
- YTD
- 2.74%
- 6M
- 2.43%
- 1Y
- 7.56%
- 3Y*
- 8.33%
- 5Y*
- 3.72%
- 10Y*
- 6.24%
AAGTX vs. LTTIX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AAGTX American Funds 2040 Target Date Retirement Fund | 7.36% | 19.16% | 14.37% | 18.95% | -17.80% | 16.51% | 18.41% | 23.94% | -5.86% | 21.63% |
LTTIX MFS Lifetime 2025 Fund | 2.74% | 9.29% | 6.73% | 10.36% | -12.36% | 8.61% | 10.61% | 17.82% | -3.97% | 13.16% |
Correlation
The correlation between AAGTX and LTTIX is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.82 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.83 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.87 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.90 |
Correlation (All Time) Calculated using the full available price history since Jan 2, 2013 | 0.91 |
The correlation between AAGTX and LTTIX has been stable across timeframes, ranging from 0.82 to 0.91 - a consistent structural relationship.
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Return for Risk
AAGTX vs. LTTIX — Risk / Return Rank
AAGTX
LTTIX
AAGTX vs. LTTIX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2040 Target Date Retirement Fund (AAGTX) and MFS Lifetime 2025 Fund (LTTIX). 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 | LTTIX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.37 | ||
| Sortino ratioReturn per unit of downside risk | -0.68 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.42 | -0.09 |
| Calmar ratioReturn relative to maximum drawdown | 2.32 | 2.47 | -0.15 |
| Martin ratioReturn relative to average drawdown | 10.28 | 10.68 | -0.41 |
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Drawdowns
AAGTX vs. LTTIX - Drawdown Comparison
The maximum AAGTX drawdown since its inception was -50.03%, which is greater than LTTIX's maximum drawdown of -19.33%. Use the drawdown chart below to compare losses from any high point for AAGTX and LTTIX.
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Drawdown Indicators
| AAGTX | LTTIX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -50.03% | -19.33% | -30.70% |
Max Drawdown (1Y)Largest decline over 1 year | -8.42% | -3.64% | -4.78% |
Max Drawdown (3Y)Largest decline over 3 years | -13.53% | -5.77% | -7.76% |
Max Drawdown (5Y)Largest decline over 5 years | -25.09% | -16.92% | -8.17% |
Max Drawdown (10Y)Largest decline over 10 years | -28.54% | -19.33% | -9.21% |
Current DrawdownCurrent decline from peak | -1.60% | -0.45% | -1.15% |
Average DrawdownAverage peak-to-trough decline | -6.97% | -2.68% | -4.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.90% | 0.84% | +1.06% |
Volatility
AAGTX vs. LTTIX - Volatility Comparison
American Funds 2040 Target Date Retirement Fund (AAGTX) has a higher volatility of 4.30% compared to MFS Lifetime 2025 Fund (LTTIX) at 1.34%. This indicates that AAGTX's price experiences larger fluctuations and is considered to be riskier than LTTIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AAGTX | LTTIX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.30% | 1.34% | +2.96% |
Volatility (6M)Calculated over the trailing 6-month period | 8.91% | 3.32% | +5.59% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.97% | 4.18% | +6.79% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.39% | 6.37% | +7.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.10% | 7.24% | +6.86% |
AAGTX vs. LTTIX - Expense Ratio Comparison
AAGTX has a 0.33% expense ratio, which is higher than LTTIX's 0.00% expense ratio.
Dividends
AAGTX vs. LTTIX - Dividend Comparison
AAGTX's dividend yield for the trailing twelve months is around 5.55%, less than LTTIX's 11.54% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAGTX American Funds 2040 Target Date Retirement Fund | 5.55% | 5.95% | 3.50% | 2.51% | 6.40% | 4.94% | 3.26% | 4.29% | 4.94% | 2.42% | 3.59% | 5.12% |
LTTIX MFS Lifetime 2025 Fund | 11.54% | 8.13% | 7.07% | 3.30% | 5.88% | 7.35% | 2.83% | 3.68% | 4.32% | 3.51% | 4.03% | 1.82% |
Frequently Asked Questions
AAGTX and LTTIX have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AAGTX has higher volatility (4.30%) compared to LTTIX (1.34%). In terms of maximum drawdown, AAGTX dropped -50.03% vs LTTIX's -19.33%.
LTTIX currently has the higher Sharpe Ratio (2.16 vs 1.78), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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