AAHTX vs. AALTX

Last updated Jun 4, 2026

AAHTX (American Funds 2045 Target Date Retirement Fund) and AALTX (American Funds 2050 Target Date Retirement Fund) are both Target Retirement Date funds from American Funds. Over the past 10 years, AAHTX returned 11.86%/yr vs 11.96%/yr for AALTX. With a 1.00 correlation, they move nearly in lockstep. Both charge a 0.33% expense ratio.

Performance

AAHTX vs. AALTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2045 Target Date Retirement Fund (AAHTX) and American Funds 2050 Target Date Retirement Fund (AALTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with AAHTX having a 10.14% return and AALTX slightly higher at 10.40%. Both investments have delivered pretty close results over the past 10 years, with AAHTX having a 11.86% annualized return and AALTX not far ahead at 11.96%.

AAHTX

• 1D: 0.23%
• 1M: 4.45%
• YTD: 10.14%
• 6M: 10.80%
• 1Y: 24.54%
• 3Y*: 18.71%
• 5Y*: 9.69%
• 10Y*: 11.86%

AALTX

• 1D: 0.23%
• 1M: 4.67%
• YTD: 10.40%
• 6M: 11.09%
• 1Y: 25.02%
• 3Y*: 18.97%
• 5Y*: 9.73%
• 10Y*: 11.96%

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

AAHTX vs. AALTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAHTX American Funds 2045 Target Date Retirement Fund	10.14%	20.01%	14.82%	19.74%	-18.40%	16.83%	18.79%	24.33%	-5.92%	22.02%
AALTX American Funds 2050 Target Date Retirement Fund	10.40%	20.06%	15.09%	20.34%	-19.14%	16.96%	19.07%	24.59%	-5.87%	22.18%

Correlation

The correlation between AAHTX and AALTX is 1.00 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Feb 5, 2007	1.00

The correlation between AAHTX and AALTX has been stable across timeframes, ranging from 1.00 to 1.00 - a consistent structural relationship.

Return for Risk

AAHTX vs. AALTX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AAHTX

AAHTX Risk / Return Rank: 57
AAHTX Sharpe Ratio Rank: 58
AAHTX Sortino Ratio Rank: 56
AAHTX Omega Ratio Rank: 57
AAHTX Calmar Ratio Rank: 51
AAHTX Martin Ratio Rank: 63

AALTX

AALTX Risk / Return Rank: 56
AALTX Sharpe Ratio Rank: 57
AALTX Sortino Ratio Rank: 55
AALTX Omega Ratio Rank: 55
AALTX Calmar Ratio Rank: 50
AALTX Martin Ratio Rank: 62

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AAHTX vs. AALTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2045 Target Date Retirement Fund (AAHTX) and American Funds 2050 Target Date Retirement Fund (AALTX). 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.

	AAHTX	AALTX	Difference
Sharpe ratio: Return per unit of total volatility	2.25	2.23	+0.02
Sortino ratio: Return per unit of downside risk	3.16	3.13	+0.03
Omega ratio: Gain probability vs. loss probability	1.42	1.41	0.00
Calmar ratio: Return relative to maximum drawdown	2.73	2.71	+0.02
Martin ratio: Return relative to average drawdown	12.36	12.25	+0.12
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AAHTX vs. AALTX - Sharpe Ratio Comparison

The current AAHTX Sharpe Ratio is 2.25, which is comparable to the AALTX Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of AAHTX and AALTX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AAHTX	AALTX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.25	2.23	+0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.70	0.68	+0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.82	0.81	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	0.54	0.00

Drawdowns

AAHTX vs. AALTX - Drawdown Comparison

The maximum AAHTX drawdown since its inception was -50.05%, roughly equal to the maximum AALTX drawdown of -50.02%. Use the drawdown chart below to compare losses from any high point for AAHTX and AALTX.

Drawdown Indicators

	AAHTX	AALTX	Difference
Max Drawdown Largest peak-to-trough decline	-50.05%	-50.02%	-0.03%
Max Drawdown (1Y) Largest decline over 1 year	-9.20%	-9.45%	+0.25%
Max Drawdown (3Y) Largest decline over 3 years	-14.49%	-14.93%	+0.44%
Max Drawdown (5Y) Largest decline over 5 years	-25.83%	-26.68%	+0.85%
Max Drawdown (10Y) Largest decline over 10 years	-28.92%	-29.30%	+0.38%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-7.08%	-7.18%	+0.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.03%	2.09%	-0.06%

Volatility

AAHTX vs. AALTX - Volatility Comparison

American Funds 2045 Target Date Retirement Fund (AAHTX) and American Funds 2050 Target Date Retirement Fund (AALTX) have volatilities of 3.26% and 3.30%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAHTX	AALTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.26%	3.30%	-0.04%
Volatility (6M) Calculated over the trailing 6-month period	8.94%	9.22%	-0.28%
Volatility (1Y) Calculated over the trailing 1-year period	11.18%	11.50%	-0.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.95%	14.28%	-0.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.59%	14.87%	-0.28%

AAHTX vs. AALTX - Expense Ratio Comparison

Both AAHTX and AALTX have an expense ratio of 0.33%.

Dividends

AAHTX vs. AALTX - Dividend Comparison

AAHTX's dividend yield for the trailing twelve months is around 5.31%, which matches AALTX's 5.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAHTX American Funds 2045 Target Date Retirement Fund	5.31%	5.85%	3.37%	2.46%	6.75%	4.62%	3.19%	4.24%	4.85%	2.33%	3.50%	4.74%
AALTX American Funds 2050 Target Date Retirement Fund	5.26%	5.81%	3.33%	2.36%	7.07%	4.32%	3.13%	4.17%	4.77%	2.36%	3.53%	4.85%

Frequently Asked Questions

Can I hold both AAHTX and AALTX in my portfolio?

With a correlation of 1.00, AAHTX and AALTX 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, AAHTX or AALTX?

AALTX has higher volatility (3.30%) compared to AAHTX (3.26%). In terms of maximum drawdown, AAHTX dropped -50.05% vs AALTX's -50.02%.

Which has better risk-adjusted returns?

AAHTX currently has the higher Sharpe Ratio (2.25 vs 2.23), 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.