AAGTX vs. SWPPX
Compare and contrast key facts about American Funds 2040 Target Date Retirement Fund (AAGTX) and Schwab S&P 500 Index Fund (SWPPX).
AAGTX is managed by American Funds. It was launched on Jan 31, 2007. SWPPX is a passively managed fund by Charles Schwab that tracks the performance of the S&P 500 Index. It was launched on May 19, 1997.
Performance
AAGTX vs. SWPPX - Performance Comparison
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AAGTX vs. SWPPX - 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% | 21.63% |
SWPPX Schwab S&P 500 Index Fund | -4.39% | 17.87% | 24.96% | 26.26% | -18.14% | 28.67% | 18.38% | 31.46% | -4.47% | 21.81% |
Returns By Period
In the year-to-date period, AAGTX achieves a -2.57% return, which is significantly higher than SWPPX's -4.39% return. Over the past 10 years, AAGTX has underperformed SWPPX with an annualized return of 10.53%, while SWPPX has yielded a comparatively higher 14.04% annualized 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%
SWPPX
- 1D
- 2.88%
- 1M
- -5.04%
- YTD
- -4.39%
- 6M
- -2.17%
- 1Y
- 17.28%
- 3Y*
- 18.27%
- 5Y*
- 11.76%
- 10Y*
- 14.04%
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AAGTX vs. SWPPX - Expense Ratio Comparison
AAGTX has a 0.33% expense ratio, which is higher than SWPPX's 0.02% expense ratio.
Return for Risk
AAGTX vs. SWPPX — Risk / Return Rank
AAGTX
SWPPX
AAGTX vs. SWPPX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2040 Target Date Retirement Fund (AAGTX) and Schwab S&P 500 Index Fund (SWPPX). 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 | SWPPX | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.28 | 0.97 | +0.31 |
Sortino ratioReturn per unit of downside risk | 1.90 | 1.49 | +0.42 |
Omega ratioGain probability vs. loss probability | 1.27 | 1.23 | +0.04 |
Calmar ratioReturn relative to maximum drawdown | 1.85 | 1.52 | +0.33 |
Martin ratioReturn relative to average drawdown | 8.15 | 7.29 | +0.86 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| AAGTX | SWPPX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.28 | 0.97 | +0.31 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.57 | 0.70 | -0.12 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.75 | 0.77 | -0.02 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 0.48 | +0.02 |
Correlation
The correlation between AAGTX and SWPPX 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. SWPPX - Dividend Comparison
AAGTX's dividend yield for the trailing twelve months is around 6.11%, more than SWPPX's 1.16% 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% |
SWPPX Schwab S&P 500 Index Fund | 1.16% | 1.11% | 1.23% | 1.43% | 1.67% | 1.27% | 1.81% | 1.95% | 2.67% | 1.79% | 2.55% | 3.17% |
Drawdowns
AAGTX vs. SWPPX - Drawdown Comparison
The maximum AAGTX drawdown since its inception was -50.03%, smaller than the maximum SWPPX drawdown of -55.06%. Use the drawdown chart below to compare losses from any high point for AAGTX and SWPPX.
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Drawdown Indicators
| AAGTX | SWPPX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -50.03% | -55.06% | +5.03% |
Max Drawdown (1Y)Largest decline over 1 year | -9.25% | -12.10% | +2.85% |
Max Drawdown (5Y)Largest decline over 5 years | -25.09% | -24.51% | -0.58% |
Max Drawdown (10Y)Largest decline over 10 years | -28.54% | -33.80% | +5.26% |
Current DrawdownCurrent decline from peak | -6.28% | -6.26% | -0.02% |
Average DrawdownAverage peak-to-trough decline | -7.05% | -10.00% | +2.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.10% | 2.52% | -0.42% |
Volatility
AAGTX vs. SWPPX - Volatility Comparison
The current volatility for American Funds 2040 Target Date Retirement Fund (AAGTX) is 4.78%, while Schwab S&P 500 Index Fund (SWPPX) has a volatility of 5.36%. This indicates that AAGTX experiences smaller price fluctuations and is considered to be less risky than SWPPX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AAGTX | SWPPX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.78% | 5.36% | -0.58% |
Volatility (6M)Calculated over the trailing 6-month period | 8.05% | 9.55% | -1.50% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.35% | 18.32% | -4.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.24% | 16.94% | -3.70% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.09% | 18.21% | -4.12% |