AALTX vs. VOO
Compare and contrast key facts about American Funds 2050 Target Date Retirement Fund (AALTX) and Vanguard S&P 500 ETF (VOO).
AALTX 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: AALTX or VOO.
Key characteristics
| AALTX | VOO | |
|---|---|---|
| YTD Return | 4.24% | 6.62% |
| 1Y Return | 18.21% | 25.71% |
| 3Y Return (Ann) | 3.04% | 8.15% |
| 5Y Return (Ann) | 8.97% | 13.32% |
| 10Y Return (Ann) | 8.78% | 12.46% |
| Sharpe Ratio | 1.73 | 2.13 |
| Daily Std Dev | 10.38% | 11.67% |
| Max Drawdown | -48.76% | -33.99% |
| Current Drawdown | -3.14% | -3.56% |
Correlation
The correlation between AALTX 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.
Performance
AALTX vs. VOO - Performance Comparison
In the year-to-date period, AALTX achieves a 4.24% return, which is significantly lower than VOO's 6.62% return. Over the past 10 years, AALTX has underperformed VOO with an annualized return of 8.78%, while VOO has yielded a comparatively higher 12.46% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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AALTX vs. VOO - Expense Ratio Comparison
AALTX has a 0.33% expense ratio, which is higher than VOO's 0.03% expense ratio.
Risk-Adjusted Performance
AALTX vs. VOO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds 2050 Target Date Retirement Fund (AALTX) 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
AALTX vs. VOO - Dividend Comparison
AALTX's dividend yield for the trailing twelve months is around 2.26%, more than VOO's 1.38% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AALTX American Funds 2050 Target Date Retirement Fund | 2.26% | 2.36% | 7.07% | 4.32% | 3.13% | 4.17% | 4.77% | 2.36% | 3.53% | 4.85% | 4.70% | 3.18% |
VOO Vanguard S&P 500 ETF | 1.38% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
AALTX vs. VOO - Drawdown Comparison
The maximum AALTX drawdown since its inception was -48.76%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for AALTX and VOO. For additional features, visit the drawdowns tool.
Volatility
AALTX vs. VOO - Volatility Comparison
The current volatility for American Funds 2050 Target Date Retirement Fund (AALTX) is 3.58%, while Vanguard S&P 500 ETF (VOO) has a volatility of 4.04%. This indicates that AALTX 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.