AAGTX vs. URFRX

Last updated Aug 5, 2026

AAGTX (American Funds 2040 Target Date Retirement Fund Class A) and URFRX (USAA Target Retirement 2040 Fund) are both Target Retirement Date funds. Over the past 10 years, AAGTX returned 11.13%/yr vs 9.25%/yr for URFRX. Their 0.97 correlation means they have historically moved very closely together. AAGTX charges 0.68%/yr vs 0.02%/yr for URFRX.

Performance

AAGTX vs. URFRX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2040 Target Date Retirement Fund Class A (AAGTX) and USAA Target Retirement 2040 Fund (URFRX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAGTX achieves a 8.84% return, which is significantly lower than URFRX's 12.10% return. Over the past 10 years, AAGTX has outperformed URFRX with an annualized return of 11.13%, while URFRX has yielded a comparatively lower 9.25% annualized return.

AAGTX

• 1D: 0.77%
• 1M: 0.20%
• 6M: 6.56%
• YTD: 8.84%
• 1Y: 16.46%
• 3Y*: 16.45%
• 5Y*: 8.62%
• 10Y*: 11.13%
• ALL TIME*: 8.47%

URFRX

• 1D: 0.76%
• 1M: 1.27%
• 6M: 8.88%
• YTD: 12.10%
• 1Y: 20.54%
• 3Y*: 15.56%
• 5Y*: 8.35%
• 10Y*: 9.25%
• ALL TIME*: 7.89%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
AAGTX American Funds 2040 Target Date Retirement Fund Class A	$0.00	$0.00	$0.00
URFRX USAA Target Retirement 2040 Fund	$0.00	$0.00	$0.00

AAGTX vs. URFRX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAGTX American Funds 2040 Target Date Retirement Fund Class A	8.84%	19.16%	14.37%	18.95%	-17.80%	16.51%	18.41%	23.94%	-5.86%	21.63%
URFRX USAA Target Retirement 2040 Fund	12.10%	17.49%	10.37%	16.75%	-14.86%	15.88%	9.22%	19.57%	-8.52%	18.48%

Correlation

The correlation between AAGTX and URFRX is 0.95 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.95
Correlation (3Y) Balances recent behavior with more history.	0.95
Correlation (5Y) Shows whether the relationship held over a longer period.	0.96
Correlation (10Y) Provides a long-term view across more market conditions.	0.96
Correlation (All Time) Calculated using the full available price history since Aug 4, 2008	0.97

The correlation between AAGTX and URFRX has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

Return for Risk

AAGTX vs. URFRX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

AAGTX

AAGTX Risk / Return Rank: 61
AAGTX Sharpe Ratio Rank: 61
AAGTX Sortino Ratio Rank: 59
AAGTX Omega Ratio Rank: 59
AAGTX Calmar Ratio Rank: 55
AAGTX Martin Ratio Rank: 69

URFRX

URFRX Risk / Return Rank: 86
URFRX Sharpe Ratio Rank: 86
URFRX Sortino Ratio Rank: 84
URFRX Omega Ratio Rank: 82
URFRX Calmar Ratio Rank: 86
URFRX Martin Ratio Rank: 91

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

AAGTX vs. URFRX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2040 Target Date Retirement Fund Class A (AAGTX) and USAA Target Retirement 2040 Fund (URFRX). 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	URFRX	Difference
Sharpe ratio: Return per unit of total volatility	1.63	2.15	-0.52
Sortino ratio: Return per unit of downside risk	2.31	3.04	-0.72
Omega ratio: Gain probability vs. loss probability	1.30	1.40	-0.10
Calmar ratio: Return relative to maximum drawdown	2.16	3.19	-1.03
Martin ratio: Return relative to average drawdown	9.33	13.66	-4.34

AAGTX vs. URFRX - Sharpe Ratio Comparison

The current AAGTX Sharpe Ratio is 1.63, which is comparable to the URFRX Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of AAGTX and URFRX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AAGTX vs. URFRX - Drawdown Comparison

The maximum AAGTX drawdown since its inception was -50.03%, which is greater than URFRX's maximum drawdown of -39.33%. Use the drawdown chart below to compare losses from any high point for AAGTX and URFRX.

Drawdown Indicators

	AAGTX	URFRX	Difference
Max Drawdown Largest peak-to-trough decline	-50.03%	-39.33%	-10.70%
Max Drawdown (1Y) Largest decline over 1 year	-8.42%	-6.88%	-1.54%
Max Drawdown (3Y) Largest decline over 3 years	-13.53%	-12.41%	-1.12%
Max Drawdown (5Y) Largest decline over 5 years	-25.09%	-22.27%	-2.82%
Max Drawdown (10Y) Largest decline over 10 years	-28.54%	-28.59%	+0.05%
Current Drawdown Current decline from peak	-0.48%	0.00%	-0.48%
Average Drawdown Average peak-to-trough decline	-6.94%	-5.15%	-1.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.94%	1.60%	+0.34%

Volatility

AAGTX vs. URFRX - Volatility Comparison

American Funds 2040 Target Date Retirement Fund Class A (AAGTX) has a higher volatility of 3.07% compared to USAA Target Retirement 2040 Fund (URFRX) at 2.55%. This indicates that AAGTX's price experiences larger fluctuations and is considered to be riskier than URFRX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAGTX	URFRX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.07%	2.55%	+0.52%
Volatility (6M) Calculated over the trailing 6-month period	9.05%	8.52%	+0.53%
Volatility (1Y) Calculated over the trailing 1-year period	11.14%	10.22%	+0.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.40%	12.41%	+0.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.09%	13.04%	+1.05%

AAGTX vs. URFRX - Expense Ratio Comparison

AAGTX has a 0.68% expense ratio, which is higher than URFRX's 0.02% expense ratio.

Dividends

AAGTX vs. URFRX - Dividend Comparison

AAGTX's dividend yield for the trailing twelve months is around 5.47%, less than URFRX's 6.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAGTX American Funds 2040 Target Date Retirement Fund Class A	5.47%	5.95%	3.50%	2.51%	6.40%	4.94%	3.26%	4.29%	4.94%	2.42%	3.59%	5.12%
URFRX USAA Target Retirement 2040 Fund	6.29%	7.05%	2.78%	3.94%	10.68%	7.78%	5.49%	12.74%	9.99%	6.53%	3.95%	2.55%

Frequently Asked Questions

Can I hold both AAGTX and URFRX in my portfolio?

With a correlation of 0.95, AAGTX and URFRX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, AAGTX or URFRX?

AAGTX has higher volatility (3.07%) compared to URFRX (2.55%). In terms of maximum drawdown, AAGTX dropped -50.03% vs URFRX's -39.33%.

Which has better risk-adjusted returns?

URFRX currently has the higher Sharpe Ratio (2.15 vs 1.63), 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.