AAMTX vs. VTI

Last updated Jun 4, 2026

AAMTX (American Funds 2055 Target Date Retirement Fund) and VTI (Vanguard Total Stock Market ETF) are both funds - AAMTX is a Target Retirement Date fund managed by American Funds, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. Over the past 10 years, AAMTX returned 12.01%/yr vs 15.05%/yr for VTI. With a 0.96 correlation, they move nearly in lockstep. AAMTX charges 0.33%/yr vs 0.03%/yr for VTI.

Performance

AAMTX vs. VTI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2055 Target Date Retirement Fund (AAMTX) and Vanguard Total Stock Market ETF (VTI). 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 AAMTX having a 10.80% return and VTI slightly higher at 11.20%. Over the past 10 years, AAMTX has underperformed VTI with an annualized return of 12.01%, while VTI has yielded a comparatively higher 15.05% annualized return.

AAMTX

• 1D: 0.21%
• 1M: 4.84%
• YTD: 10.80%
• 6M: 11.49%
• 1Y: 25.89%
• 3Y*: 19.32%
• 5Y*: 9.84%
• 10Y*: 12.01%

VTI

• 1D: -0.72%
• 1M: 4.99%
• YTD: 11.20%
• 6M: 11.09%
• 1Y: 28.18%
• 3Y*: 22.07%
• 5Y*: 12.69%
• 10Y*: 15.05%

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

AAMTX vs. VTI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAMTX American Funds 2055 Target Date Retirement Fund	10.80%	20.37%	15.16%	21.03%	-19.75%	16.94%	19.06%	24.60%	-5.95%	22.20%
VTI Vanguard Total Stock Market ETF	11.20%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.23%	21.21%

Correlation

The correlation between AAMTX and VTI is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Feb 3, 2010	0.96

The correlation between AAMTX and VTI has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

Return for Risk

AAMTX vs. VTI — Risk / Return Rank

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

AAMTX

AAMTX Risk / Return Rank: 56
AAMTX Sharpe Ratio Rank: 57
AAMTX Sortino Ratio Rank: 54
AAMTX Omega Ratio Rank: 56
AAMTX Calmar Ratio Rank: 51
AAMTX Martin Ratio Rank: 63

VTI

VTI Risk / Return Rank: 68
VTI Sharpe Ratio Rank: 69
VTI Sortino Ratio Rank: 68
VTI Omega Ratio Rank: 67
VTI Calmar Ratio Rank: 62
VTI 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. VTI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2055 Target Date Retirement Fund (AAMTX) 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.

	AAMTX	VTI	Difference
Sharpe ratio: Return per unit of total volatility	2.23	2.33	-0.10
Sortino ratio: Return per unit of downside risk	3.12	3.18	-0.07
Omega ratio: Gain probability vs. loss probability	1.41	1.42	-0.01
Calmar ratio: Return relative to maximum drawdown	2.72	3.17	-0.45
Martin ratio: Return relative to average drawdown	12.35	14.62	-2.27
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AAMTX vs. VTI - Sharpe Ratio Comparison

The current AAMTX Sharpe Ratio is 2.23, which is comparable to the VTI Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of AAMTX and VTI, 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

	AAMTX	VTI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.23	2.33	-0.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.73	-0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.80	0.82	-0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.77	0.51	+0.26

Drawdowns

AAMTX vs. VTI - Drawdown Comparison

The maximum AAMTX drawdown since its inception was -29.32%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for AAMTX and VTI.

Drawdown Indicators

	AAMTX	VTI	Difference
Max Drawdown Largest peak-to-trough decline	-29.32%	-55.45%	+26.13%
Max Drawdown (1Y) Largest decline over 1 year	-9.71%	-8.92%	-0.79%
Max Drawdown (3Y) Largest decline over 3 years	-15.39%	-19.30%	+3.91%
Max Drawdown (5Y) Largest decline over 5 years	-27.34%	-25.36%	-1.98%
Max Drawdown (10Y) Largest decline over 10 years	-29.32%	-35.00%	+5.68%
Current Drawdown Current decline from peak	0.00%	-0.72%	+0.72%
Average Drawdown Average peak-to-trough decline	-4.28%	-8.03%	+3.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.14%	1.93%	+0.21%

Volatility

AAMTX vs. VTI - Volatility Comparison

American Funds 2055 Target Date Retirement Fund (AAMTX) has a higher volatility of 3.43% compared to Vanguard Total Stock Market ETF (VTI) at 2.96%. This indicates that AAMTX's price experiences larger fluctuations and is considered to be riskier than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAMTX	VTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.43%	2.96%	+0.47%
Volatility (6M) Calculated over the trailing 6-month period	9.52%	9.13%	+0.39%
Volatility (1Y) Calculated over the trailing 1-year period	11.87%	12.17%	-0.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.59%	17.40%	-2.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.03%	18.30%	-3.27%

AAMTX vs. VTI - Expense Ratio Comparison

AAMTX has a 0.33% expense ratio, which is higher than VTI's 0.03% expense ratio.

Dividends

AAMTX vs. VTI - Dividend Comparison

AAMTX's dividend yield for the trailing twelve months is around 5.14%, more than VTI's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAMTX American Funds 2055 Target Date Retirement Fund	5.14%	5.70%	3.22%	2.22%	6.92%	4.15%	2.98%	3.92%	4.46%	2.18%	3.19%	4.06%
VTI Vanguard Total Stock Market ETF	1.01%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both AAMTX and VTI in my portfolio?

With a correlation of 0.95, AAMTX and VTI 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 VTI?

AAMTX has higher volatility (3.43%) compared to VTI (2.96%). In terms of maximum drawdown, AAMTX dropped -29.32% vs VTI's -55.45%.

Which has better risk-adjusted returns?

VTI currently has the higher Sharpe Ratio (2.33 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.