AAMTX vs. FDEWX

Last updated Jun 24, 2026

AAMTX (American Funds 2055 Target Date Retirement Fund) and FDEWX (Fidelity Freedom Index 2055 Fund Investor Class) are both Target Retirement Date funds. Over the past 10 years, AAMTX returned 12.34%/yr vs 12.24%/yr for FDEWX. With a 0.98 correlation, they move nearly in lockstep. AAMTX charges 0.33%/yr vs 0.12%/yr for FDEWX.

Performance

AAMTX vs. FDEWX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2055 Target Date Retirement Fund (AAMTX) and Fidelity Freedom Index 2055 Fund Investor Class (FDEWX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAMTX achieves a 10.63% return, which is significantly lower than FDEWX's 11.87% return. Both investments have delivered pretty close results over the past 10 years, with AAMTX having a 12.34% annualized return and FDEWX not far behind at 12.24%.

AAMTX

• 1D: -0.18%
• 1M: 2.21%
• YTD: 10.63%
• 6M: 10.13%
• 1Y: 24.35%
• 3Y*: 18.95%
• 5Y*: 9.59%
• 10Y*: 12.34%

FDEWX

• 1D: -0.14%
• 1M: 1.79%
• YTD: 11.87%
• 6M: 11.27%
• 1Y: 26.79%
• 3Y*: 18.99%
• 5Y*: 9.89%
• 10Y*: 12.24%

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

AAMTX vs. FDEWX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAMTX American Funds 2055 Target Date Retirement Fund	10.63%	20.37%	15.16%	21.03%	-19.75%	16.94%	19.06%	24.60%	-5.95%	22.20%
FDEWX Fidelity Freedom Index 2055 Fund Investor Class	11.87%	21.39%	14.14%	19.95%	-18.01%	15.88%	16.46%	25.94%	-7.19%	20.53%

Correlation

The correlation between AAMTX and FDEWX is 0.97 - 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	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Jun 3, 2011	0.98

The correlation between AAMTX and FDEWX has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

Return for Risk

AAMTX vs. FDEWX — Risk / Return Rank

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

AAMTX

AAMTX Risk / Return Rank: 54
AAMTX Sharpe Ratio Rank: 54
AAMTX Sortino Ratio Rank: 51
AAMTX Omega Ratio Rank: 54
AAMTX Calmar Ratio Rank: 51
AAMTX Martin Ratio Rank: 62

FDEWX

FDEWX Risk / Return Rank: 70
FDEWX Sharpe Ratio Rank: 71
FDEWX Sortino Ratio Rank: 65
FDEWX Omega Ratio Rank: 67
FDEWX Calmar Ratio Rank: 70
FDEWX Martin Ratio Rank: 75

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.

AAMTX vs. FDEWX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2055 Target Date Retirement Fund (AAMTX) and Fidelity Freedom Index 2055 Fund Investor Class (FDEWX). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AAMTX	FDEWX	Difference
Sharpe ratio: Return per unit of total volatility	2.00	2.25	-0.25
Sortino ratio: Return per unit of downside risk	2.78	3.08	-0.30
Omega ratio: Gain probability vs. loss probability	1.37	1.42	-0.04
Calmar ratio: Return relative to maximum drawdown	2.61	3.08	-0.47
Martin ratio: Return relative to average drawdown	11.58	13.26	-1.69

AAMTX vs. FDEWX - Sharpe Ratio Comparison

The current AAMTX Sharpe Ratio is 2.00, which is comparable to the FDEWX Sharpe Ratio of 2.25. The chart below compares the historical Sharpe Ratios of AAMTX and FDEWX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AAMTX vs. FDEWX - Drawdown Comparison

The maximum AAMTX drawdown since its inception was -29.32%, roughly equal to the maximum FDEWX drawdown of -30.69%. Use the drawdown chart below to compare losses from any high point for AAMTX and FDEWX.

Drawdown Indicators

	AAMTX	FDEWX	Difference
Max Drawdown Largest peak-to-trough decline	-29.32%	-30.69%	+1.37%
Max Drawdown (1Y) Largest decline over 1 year	-9.71%	-9.07%	-0.64%
Max Drawdown (3Y) Largest decline over 3 years	-15.39%	-14.74%	-0.65%
Max Drawdown (5Y) Largest decline over 5 years	-27.34%	-26.22%	-1.12%
Max Drawdown (10Y) Largest decline over 10 years	-29.32%	-30.69%	+1.37%
Current Drawdown Current decline from peak	-0.21%	-0.66%	+0.45%
Average Drawdown Average peak-to-trough decline	-4.27%	-4.22%	-0.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.18%	2.10%	+0.08%

Volatility

AAMTX vs. FDEWX - Volatility Comparison

American Funds 2055 Target Date Retirement Fund (AAMTX) and Fidelity Freedom Index 2055 Fund Investor Class (FDEWX) have volatilities of 5.03% and 5.06%, 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

	AAMTX	FDEWX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.03%	5.06%	-0.03%
Volatility (6M) Calculated over the trailing 6-month period	10.43%	10.39%	+0.04%
Volatility (1Y) Calculated over the trailing 1-year period	12.68%	12.43%	+0.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.72%	14.52%	+0.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.09%	15.23%	-0.14%

AAMTX vs. FDEWX - Expense Ratio Comparison

AAMTX has a 0.33% expense ratio, which is higher than FDEWX's 0.12% expense ratio.

Dividends

AAMTX vs. FDEWX - Dividend Comparison

AAMTX's dividend yield for the trailing twelve months is around 5.15%, more than FDEWX's 1.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAMTX American Funds 2055 Target Date Retirement Fund	5.15%	5.70%	3.22%	2.22%	6.92%	4.15%	2.98%	3.92%	4.46%	2.18%	3.19%	4.06%
FDEWX Fidelity Freedom Index 2055 Fund Investor Class	1.69%	1.97%	1.98%	1.92%	2.24%	1.89%	1.85%	10.83%	2.36%	1.93%	2.42%	2.31%

Frequently Asked Questions

Can I hold both AAMTX and FDEWX in my portfolio?

With a correlation of 0.97, AAMTX and FDEWX 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, AAMTX or FDEWX?

FDEWX has higher volatility (5.06%) compared to AAMTX (5.03%). In terms of maximum drawdown, AAMTX dropped -29.32% vs FDEWX's -30.69%.

Which has better risk-adjusted returns?

FDEWX currently has the higher Sharpe Ratio (2.25 vs 2.00), 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.