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.
Performance
AAGTX vs. VOO - Performance Comparison
Returns By Period
In the year-to-date period, AAGTX achieves a 15.21% return, which is significantly lower than VOO's 26.16% return. Over the past 10 years, AAGTX has underperformed VOO with an annualized return of 9.04%, while VOO has yielded a comparatively higher 13.18% annualized return.
AAGTX
15.21%
-0.37%
7.53%
21.82%
10.07%
9.04%
VOO
26.16%
1.77%
13.62%
32.33%
15.68%
13.18%
Key characteristics
| AAGTX | VOO | |
|---|---|---|
| Sharpe Ratio | 2.24 | 2.70 |
| Sortino Ratio | 3.10 | 3.60 |
| Omega Ratio | 1.41 | 1.50 |
| Calmar Ratio | 2.77 | 3.90 |
| Martin Ratio | 14.63 | 17.65 |
| Ulcer Index | 1.51% | 1.86% |
| Daily Std Dev | 9.90% | 12.19% |
| Max Drawdown | -48.78% | -33.99% |
| Current Drawdown | -1.66% | -0.86% |
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AAGTX vs. VOO - Expense Ratio Comparison
AAGTX has a 0.33% expense ratio, which is higher than VOO's 0.03% expense ratio.
Correlation
The correlation between AAGTX and VOO 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.
Risk-Adjusted Performance
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 1.27%, more than VOO's 1.24% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAGTX American Funds 2040 Target Date Retirement Fund | 1.27% | 1.47% | 1.08% | 0.77% | 0.78% | 1.01% | 1.09% | 0.89% | 1.00% | 0.80% | 4.84% | 3.35% |
VOO Vanguard S&P 500 ETF | 1.24% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
AAGTX vs. VOO - Drawdown Comparison
The maximum AAGTX drawdown since its inception was -48.78%, 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 2.75%, while Vanguard S&P 500 ETF (VOO) has a volatility of 3.99%. 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.