AALTX vs. VTI
Compare and contrast key facts about American Funds 2050 Target Date Retirement Fund (AALTX) and Vanguard Total Stock Market ETF (VTI).
AALTX is managed by American Funds. It was launched on Jan 31, 2007. VTI is a passively managed fund by Vanguard that tracks the performance of the CRSP US Total Market Index. It was launched on May 24, 2001.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: AALTX or VTI.
Key characteristics
| AALTX | VTI | |
|---|---|---|
| YTD Return | 4.24% | 5.99% |
| 1Y Return | 18.21% | 25.64% |
| 3Y Return (Ann) | 3.04% | 6.43% |
| 5Y Return (Ann) | 8.97% | 12.52% |
| 10Y Return (Ann) | 8.78% | 11.86% |
| Sharpe Ratio | 1.73 | 2.07 |
| Daily Std Dev | 10.38% | 12.02% |
| Max Drawdown | -48.76% | -55.45% |
| Current Drawdown | -3.14% | -3.59% |
Correlation
The correlation between AALTX and VTI 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. VTI - Performance Comparison
In the year-to-date period, AALTX achieves a 4.24% return, which is significantly lower than VTI's 5.99% return. Over the past 10 years, AALTX has underperformed VTI with an annualized return of 8.78%, while VTI has yielded a comparatively higher 11.86% 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. VTI - Expense Ratio Comparison
AALTX has a 0.33% expense ratio, which is higher than VTI's 0.03% expense ratio.
Risk-Adjusted Performance
AALTX vs. VTI - 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 Total Stock Market ETF (VTI). 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. VTI - Dividend Comparison
AALTX's dividend yield for the trailing twelve months is around 2.26%, more than VTI's 1.41% 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% |
VTI Vanguard Total Stock Market ETF | 1.41% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% | 1.74% |
Drawdowns
AALTX vs. VTI - Drawdown Comparison
The maximum AALTX drawdown since its inception was -48.76%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for AALTX and VTI. For additional features, visit the drawdowns tool.
Volatility
AALTX vs. VTI - Volatility Comparison
The current volatility for American Funds 2050 Target Date Retirement Fund (AALTX) is 3.58%, while Vanguard Total Stock Market ETF (VTI) has a volatility of 4.11%. This indicates that AALTX experiences smaller price fluctuations and is considered to be less risky than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.