AAGTX vs. RLBGX
Compare and contrast key facts about American Funds 2040 Target Date Retirement Fund (AAGTX) and American Funds American Balanced Fund Class R-6 (RLBGX).
AAGTX is managed by American Funds. It was launched on Jan 31, 2007. RLBGX is managed by American Funds. It was launched on Jul 26, 1975.
Performance
AAGTX vs. RLBGX - Performance Comparison
Loading graphics...
AAGTX vs. RLBGX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AAGTX American Funds 2040 Target Date Retirement Fund | -1.78% | 19.16% | 14.37% | 18.95% | -17.80% | 16.51% | 18.41% | 23.94% | -5.86% | 21.63% |
RLBGX American Funds American Balanced Fund Class R-6 | -0.62% | 18.83% | 15.35% | 13.92% | -11.85% | 16.10% | 11.20% | 18.95% | -3.07% | 14.97% |
Returns By Period
In the year-to-date period, AAGTX achieves a -1.78% return, which is significantly lower than RLBGX's -0.62% return. Over the past 10 years, AAGTX has outperformed RLBGX with an annualized return of 10.62%, while RLBGX has yielded a comparatively lower 9.57% annualized return.
AAGTX
- 1D
- 0.80%
- 1M
- -3.30%
- YTD
- -1.78%
- 6M
- 0.37%
- 1Y
- 16.98%
- 3Y*
- 14.67%
- 5Y*
- 7.72%
- 10Y*
- 10.62%
RLBGX
- 1D
- 0.46%
- 1M
- -3.10%
- YTD
- -0.62%
- 6M
- 2.41%
- 1Y
- 17.53%
- 3Y*
- 14.68%
- 5Y*
- 8.68%
- 10Y*
- 9.57%
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
AAGTX vs. RLBGX - Expense Ratio Comparison
AAGTX has a 0.33% expense ratio, which is higher than RLBGX's 0.25% expense ratio.
Return for Risk
AAGTX vs. RLBGX — Risk / Return Rank
AAGTX
RLBGX
AAGTX vs. RLBGX - 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 American Balanced Fund Class R-6 (RLBGX). 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 | RLBGX | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.32 | 1.60 | -0.28 |
Sortino ratioReturn per unit of downside risk | 1.95 | 2.34 | -0.39 |
Omega ratioGain probability vs. loss probability | 1.27 | 1.33 | -0.06 |
Calmar ratioReturn relative to maximum drawdown | 1.95 | 2.49 | -0.55 |
Martin ratioReturn relative to average drawdown | 8.48 | 10.30 | -1.82 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading graphics...
Sharpe Ratios by Period
| AAGTX | RLBGX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.32 | 1.60 | -0.28 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.59 | 0.84 | -0.25 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.76 | 0.90 | -0.15 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.51 | 0.93 | -0.42 |
Correlation
The correlation between AAGTX and RLBGX 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.
Dividends
AAGTX vs. RLBGX - Dividend Comparison
AAGTX's dividend yield for the trailing twelve months is around 6.06%, less than RLBGX's 8.65% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAGTX American Funds 2040 Target Date Retirement Fund | 6.06% | 5.95% | 3.50% | 2.51% | 6.40% | 4.94% | 3.26% | 4.29% | 4.94% | 2.42% | 3.59% | 5.12% |
RLBGX American Funds American Balanced Fund Class R-6 | 8.65% | 8.56% | 7.50% | 2.27% | 2.63% | 4.59% | 4.65% | 3.78% | 5.81% | 4.92% | 4.54% | 5.91% |
Drawdowns
AAGTX vs. RLBGX - Drawdown Comparison
The maximum AAGTX drawdown since its inception was -50.03%, which is greater than RLBGX's maximum drawdown of -22.33%. Use the drawdown chart below to compare losses from any high point for AAGTX and RLBGX.
Loading graphics...
Drawdown Indicators
| AAGTX | RLBGX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -50.03% | -22.33% | -27.70% |
Max Drawdown (1Y)Largest decline over 1 year | -8.42% | -6.98% | -1.44% |
Max Drawdown (5Y)Largest decline over 5 years | -25.09% | -18.59% | -6.50% |
Max Drawdown (10Y)Largest decline over 10 years | -28.54% | -22.33% | -6.21% |
Current DrawdownCurrent decline from peak | -5.53% | -4.90% | -0.63% |
Average DrawdownAverage peak-to-trough decline | -7.04% | -2.48% | -4.56% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.12% | 1.77% | +0.35% |
Volatility
AAGTX vs. RLBGX - Volatility Comparison
American Funds 2040 Target Date Retirement Fund (AAGTX) has a higher volatility of 4.68% compared to American Funds American Balanced Fund Class R-6 (RLBGX) at 3.73%. This indicates that AAGTX's price experiences larger fluctuations and is considered to be riskier than RLBGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading graphics...
Volatility by Period
| AAGTX | RLBGX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.68% | 3.73% | +0.95% |
Volatility (6M)Calculated over the trailing 6-month period | 8.09% | 6.96% | +1.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.37% | 11.19% | +2.18% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.24% | 10.44% | +2.80% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.08% | 10.63% | +3.45% |