AAOTX vs. FFGZX

Last updated Jul 11, 2026

AAOTX (American Funds 2065 Target Date Retirement Fund Class A) and FFGZX (Fidelity Freedom Index Income Fund Institutional Premium Class) are both Target Retirement Date funds. Over the past 5 years, AAOTX returned 9.25%/yr vs 2.93%/yr for FFGZX. A 0.72 correlation means they provide meaningful diversification when combined. AAOTX charges 0.73%/yr vs 0.08%/yr for FFGZX.

Performance

AAOTX vs. FFGZX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2065 Target Date Retirement Fund Class A (AAOTX) and Fidelity Freedom Index Income Fund Institutional Premium Class (FFGZX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAOTX achieves a 10.58% return, which is significantly higher than FFGZX's 3.73% return.

AAOTX

• 1D: 0.82%
• 1M: 1.47%
• 6M: 7.42%
• YTD: 10.58%
• 1Y: 19.92%
• 3Y*: 18.50%
• 5Y*: 9.25%
• 10Y*: —

FFGZX

• 1D: 0.24%
• 1M: 0.08%
• 6M: 2.90%
• YTD: 3.73%
• 1Y: 8.30%
• 3Y*: 7.56%
• 5Y*: 2.93%
• 10Y*: 4.12%

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

AAOTX vs. FFGZX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
AAOTX American Funds 2065 Target Date Retirement Fund Class A	10.58%	20.36%	15.20%	21.16%	-19.94%	16.85%	46.68%
FFGZX Fidelity Freedom Index Income Fund Institutional Premium Class	3.73%	9.13%	5.02%	8.32%	-11.07%	2.85%	11.00%

Correlation

The correlation between AAOTX and FFGZX is 0.82, 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	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.72
Correlation (5Y) Calculated over the trailing 5-year period	0.70
Correlation (All Time) Calculated using the full available price history since Mar 27, 2020	0.72

The correlation between AAOTX and FFGZX shifts across timeframes, from 0.70 (5 years) to 0.82 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

AAOTX vs. FFGZX — Risk / Return Rank

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

AAOTX

AAOTX Risk / Return Rank: 47
AAOTX Sharpe Ratio Rank: 46
AAOTX Sortino Ratio Rank: 44
AAOTX Omega Ratio Rank: 46
AAOTX Calmar Ratio Rank: 43
AAOTX Martin Ratio Rank: 56

FFGZX

FFGZX Risk / Return Rank: 71
FFGZX Sharpe Ratio Rank: 71
FFGZX Sortino Ratio Rank: 73
FFGZX Omega Ratio Rank: 74
FFGZX Calmar Ratio Rank: 64
FFGZX Martin Ratio Rank: 73

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.

AAOTX vs. FFGZX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2065 Target Date Retirement Fund Class A (AAOTX) and Fidelity Freedom Index Income Fund Institutional Premium Class (FFGZX). 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.

	AAOTX	FFGZX	Difference
Sharpe ratio: Return per unit of total volatility	1.52	1.86	-0.34
Sortino ratio: Return per unit of downside risk	2.15	2.72	-0.57
Omega ratio: Gain probability vs. loss probability	1.28	1.36	-0.08
Calmar ratio: Return relative to maximum drawdown	2.01	2.45	-0.44
Martin ratio: Return relative to average drawdown	8.87	10.51	-1.64

AAOTX vs. FFGZX - Sharpe Ratio Comparison

The current AAOTX Sharpe Ratio is 1.52, which is comparable to the FFGZX Sharpe Ratio of 1.86. The chart below compares the historical Sharpe Ratios of AAOTX and FFGZX, 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

AAOTX vs. FFGZX - Drawdown Comparison

The maximum AAOTX drawdown since its inception was -27.57%, which is greater than FFGZX's maximum drawdown of -14.94%. Use the drawdown chart below to compare losses from any high point for AAOTX and FFGZX.

Drawdown Indicators

	AAOTX	FFGZX	Difference
Max Drawdown Largest peak-to-trough decline	-27.57%	-14.94%	-12.63%
Max Drawdown (1Y) Largest decline over 1 year	-9.82%	-3.33%	-6.49%
Max Drawdown (3Y) Largest decline over 3 years	-15.53%	-4.76%	-10.77%
Max Drawdown (5Y) Largest decline over 5 years	-27.57%	-14.94%	-12.63%
Max Drawdown (10Y) Largest decline over 10 years	—	-14.94%	—
Current Drawdown Current decline from peak	-0.63%	-0.52%	-0.11%
Average Drawdown Average peak-to-trough decline	-5.94%	-2.25%	-3.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.22%	0.77%	+1.45%

Volatility

AAOTX vs. FFGZX - Volatility Comparison

American Funds 2065 Target Date Retirement Fund Class A (AAOTX) has a higher volatility of 4.74% compared to Fidelity Freedom Index Income Fund Institutional Premium Class (FFGZX) at 1.69%. This indicates that AAOTX's price experiences larger fluctuations and is considered to be riskier than FFGZX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAOTX	FFGZX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.74%	1.69%	+3.05%
Volatility (6M) Calculated over the trailing 6-month period	10.77%	3.78%	+6.99%
Volatility (1Y) Calculated over the trailing 1-year period	12.97%	4.38%	+8.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.88%	5.16%	+9.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.11%	4.46%	+10.65%

AAOTX vs. FFGZX - Expense Ratio Comparison

AAOTX has a 0.73% expense ratio, which is higher than FFGZX's 0.08% expense ratio.

Dividends

AAOTX vs. FFGZX - Dividend Comparison

AAOTX's dividend yield for the trailing twelve months is around 3.98%, more than FFGZX's 3.23% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAOTX American Funds 2065 Target Date Retirement Fund Class A	3.98%	4.41%	2.52%	1.71%	3.67%	1.34%	0.60%	0.00%	0.00%	0.00%	0.00%	0.00%
FFGZX Fidelity Freedom Index Income Fund Institutional Premium Class	3.07%	3.30%	3.18%	2.88%	3.11%	2.10%	2.22%	7.35%	3.00%	1.95%	1.56%	1.06%

Frequently Asked Questions

Can I hold both AAOTX and FFGZX in my portfolio?

AAOTX and FFGZX have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AAOTX or FFGZX?

AAOTX has higher volatility (4.74%) compared to FFGZX (1.69%). In terms of maximum drawdown, AAOTX dropped -27.57% vs FFGZX's -14.94%.

Which has better risk-adjusted returns?

FFGZX currently has the higher Sharpe Ratio (1.86 vs 1.52), 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.