Correlation
The correlation between AAHTX and VFORX 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.
AAHTX vs. VFORX
Compare and contrast key facts about American Funds 2045 Target Date Retirement Fund (AAHTX) and Vanguard Target Retirement 2040 Fund (VFORX).
AAHTX is managed by American Funds. It was launched on Jan 31, 2007. VFORX is managed by Vanguard. It was launched on Jun 7, 2006.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: AAHTX or VFORX.
Performance
AAHTX vs. VFORX - Performance Comparison
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Key characteristics
AAHTX:
0.89
VFORX:
0.92
AAHTX:
1.18
VFORX:
1.24
AAHTX:
1.17
VFORX:
1.17
AAHTX:
0.83
VFORX:
0.70
AAHTX:
3.48
VFORX:
3.93
AAHTX:
3.44%
VFORX:
2.75%
AAHTX:
15.23%
VFORX:
13.00%
AAHTX:
-49.93%
VFORX:
-51.63%
AAHTX:
-0.14%
VFORX:
-3.18%
Returns By Period
In the year-to-date period, AAHTX achieves a 5.18% return, which is significantly higher than VFORX's 4.88% return. Over the past 10 years, AAHTX has outperformed VFORX with an annualized return of 9.19%, while VFORX has yielded a comparatively lower 6.03% annualized return.
AAHTX
5.18%
5.23%
2.76%
12.79%
11.10%
11.37%
9.19%
VFORX
4.88%
4.04%
2.06%
11.23%
9.46%
6.60%
6.03%
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AAHTX vs. VFORX - Expense Ratio Comparison
AAHTX has a 0.33% expense ratio, which is higher than VFORX's 0.08% expense ratio.
Risk-Adjusted Performance
AAHTX vs. VFORX — Risk-Adjusted Performance Rank
AAHTX
VFORX
AAHTX vs. VFORX - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2045 Target Date Retirement Fund (AAHTX) and Vanguard Target Retirement 2040 Fund (VFORX). 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.
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Dividends
AAHTX vs. VFORX - Dividend Comparison
AAHTX's dividend yield for the trailing twelve months is around 3.21%, more than VFORX's 2.53% yield.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAHTX American Funds 2045 Target Date Retirement Fund | 3.21% | 3.37% | 2.46% | 6.75% | 4.62% | 3.19% | 4.24% | 4.85% | 2.33% | 3.50% | 4.74% | 3.53% |
VFORX Vanguard Target Retirement 2040 Fund | 2.53% | 2.65% | 2.38% | 2.60% | 20.68% | 2.06% | 2.28% | 2.58% | 1.95% | 2.40% | 2.99% | 1.99% |
Drawdowns
AAHTX vs. VFORX - Drawdown Comparison
The maximum AAHTX drawdown since its inception was -49.93%, roughly equal to the maximum VFORX drawdown of -51.63%. Use the drawdown chart below to compare losses from any high point for AAHTX and VFORX.
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Volatility
AAHTX vs. VFORX - Volatility Comparison
American Funds 2045 Target Date Retirement Fund (AAHTX) has a higher volatility of 3.50% compared to Vanguard Target Retirement 2040 Fund (VFORX) at 2.85%. This indicates that AAHTX's price experiences larger fluctuations and is considered to be riskier than VFORX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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