AAGTX vs. VOO
Compare and contrast key facts about American Funds 2040 Target Date Retirement Fund (AAGTX) and Vanguard S&P 500 ETF (VOO).
AAGTX is managed by American Funds. It was launched on Jan 31, 2007. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: AAGTX or VOO.
Correlation
The correlation between AAGTX and VOO is 0.95, 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. VOO - Performance Comparison
Key characteristics
AAGTX:
1.52
VOO:
2.15
AAGTX:
2.06
VOO:
2.85
AAGTX:
1.28
VOO:
1.40
AAGTX:
1.30
VOO:
3.25
AAGTX:
8.21
VOO:
13.67
AAGTX:
1.94%
VOO:
2.01%
AAGTX:
10.49%
VOO:
12.79%
AAGTX:
-48.12%
VOO:
-33.99%
AAGTX:
-2.04%
VOO:
0.00%
Returns By Period
The year-to-date returns for both investments are quite close, with AAGTX having a 3.43% return and VOO slightly higher at 3.49%. Over the past 10 years, AAGTX has underperformed VOO with an annualized return of 6.03%, while VOO has yielded a comparatively higher 13.52% annualized return.
AAGTX
3.43%
0.26%
6.55%
15.66%
6.27%
6.03%
VOO
3.49%
1.90%
12.84%
26.78%
14.88%
13.52%
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. VOO - Expense Ratio Comparison
AAGTX has a 0.33% expense ratio, which is higher than VOO's 0.03% expense ratio.
Risk-Adjusted Performance
AAGTX vs. VOO — Risk-Adjusted Performance Rank
AAGTX
VOO
AAGTX vs. VOO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2040 Target Date Retirement Fund (AAGTX) and Vanguard S&P 500 ETF (VOO). 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. VOO - Dividend Comparison
AAGTX's dividend yield for the trailing twelve months is around 1.26%, more than VOO's 1.20% yield.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAGTX American Funds 2040 Target Date Retirement Fund | 1.26% | 1.30% | 1.47% | 1.08% | 0.77% | 0.78% | 1.01% | 1.09% | 0.89% | 1.00% | 0.80% | 4.84% |
VOO Vanguard S&P 500 ETF | 1.20% | 1.24% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% |
Drawdowns
AAGTX vs. VOO - Drawdown Comparison
The maximum AAGTX drawdown since its inception was -48.12%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for AAGTX and VOO. For additional features, visit the drawdowns tool.
Volatility
AAGTX vs. VOO - Volatility Comparison
The current volatility for American Funds 2040 Target Date Retirement Fund (AAGTX) is 3.71%, while Vanguard S&P 500 ETF (VOO) has a volatility of 4.07%. This indicates that AAGTX experiences smaller price fluctuations and is considered to be less risky than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.