CTHAX vs. CSTAX

Last updated Jun 5, 2026

CTHAX (American Funds College 2030 Fund) and CSTAX (American Funds College 2027 Fund) are both Diversified Portfolio funds from American Funds. Over the past 10 years, CTHAX returned 6.70%/yr vs 4.97%/yr for CSTAX. With a 0.96 correlation, they move nearly in lockstep. Both charge a 0.41% expense ratio.

Performance

CTHAX vs. CSTAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds College 2030 Fund (CTHAX) and American Funds College 2027 Fund (CSTAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CTHAX achieves a 2.47% return, which is significantly higher than CSTAX's 1.30% return. Over the past 10 years, CTHAX has outperformed CSTAX with an annualized return of 6.70%, while CSTAX has yielded a comparatively lower 4.97% annualized return.

CTHAX

• 1D: -0.28%
• 1M: 0.64%
• YTD: 2.47%
• 6M: 2.86%
• 1Y: 9.35%
• 3Y*: 9.31%
• 5Y*: 4.17%
• 10Y*: 6.70%

CSTAX

• 1D: -0.16%
• 1M: 0.40%
• YTD: 1.30%
• 6M: 1.67%
• 1Y: 6.47%
• 3Y*: 6.81%
• 5Y*: 2.74%
• 10Y*: 4.97%

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

CTHAX vs. CSTAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CTHAX American Funds College 2030 Fund	2.47%	11.55%	7.66%	9.26%	-11.69%	9.28%	10.86%	16.63%	-3.63%	15.27%
CSTAX American Funds College 2027 Fund	1.30%	9.00%	5.57%	6.57%	-9.87%	6.52%	7.66%	13.35%	-2.23%	11.77%

Correlation

The correlation between CTHAX and CSTAX is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jan 3, 2013	0.96

The correlation between CTHAX and CSTAX has been stable across timeframes, ranging from 0.93 to 0.96 - a consistent structural relationship.

Return for Risk

CTHAX vs. CSTAX — Risk / Return Rank

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

CTHAX

CTHAX Risk / Return Rank: 55
CTHAX Sharpe Ratio Rank: 59
CTHAX Sortino Ratio Rank: 60
CTHAX Omega Ratio Rank: 62
CTHAX Calmar Ratio Rank: 43
CTHAX Martin Ratio Rank: 50

CSTAX

CSTAX Risk / Return Rank: 56
CSTAX Sharpe Ratio Rank: 59
CSTAX Sortino Ratio Rank: 66
CSTAX Omega Ratio Rank: 65
CSTAX Calmar Ratio Rank: 44
CSTAX Martin Ratio Rank: 47

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.

CTHAX vs. CSTAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds College 2030 Fund (CTHAX) and American Funds College 2027 Fund (CSTAX). 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.

	CTHAX	CSTAX	Difference
Sharpe ratio: Return per unit of total volatility	2.22	2.25	-0.03
Sortino ratio: Return per unit of downside risk	3.21	3.38	-0.17
Omega ratio: Gain probability vs. loss probability	1.43	1.45	-0.02
Calmar ratio: Return relative to maximum drawdown	2.43	2.52	-0.09
Martin ratio: Return relative to average drawdown	10.10	9.68	+0.42
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CTHAX vs. CSTAX - Sharpe Ratio Comparison

The current CTHAX Sharpe Ratio is 2.22, which is comparable to the CSTAX Sharpe Ratio of 2.25. The chart below compares the historical Sharpe Ratios of CTHAX and CSTAX, 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

	CTHAX	CSTAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.22	2.25	-0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.62	0.53	+0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.86	0.86	0.00
Sharpe Ratio (All Time) Calculated using the full available price history	0.85	0.87	-0.02

Drawdowns

CTHAX vs. CSTAX - Drawdown Comparison

The maximum CTHAX drawdown since its inception was -17.17%, which is greater than CSTAX's maximum drawdown of -14.52%. Use the drawdown chart below to compare losses from any high point for CTHAX and CSTAX.

Drawdown Indicators

	CTHAX	CSTAX	Difference
Max Drawdown Largest peak-to-trough decline	-17.17%	-14.52%	-2.65%
Max Drawdown (1Y) Largest decline over 1 year	-4.03%	-2.72%	-1.31%
Max Drawdown (3Y) Largest decline over 3 years	-6.16%	-4.89%	-1.27%
Max Drawdown (5Y) Largest decline over 5 years	-17.11%	-14.52%	-2.59%
Max Drawdown (10Y) Largest decline over 10 years	-17.17%	-14.52%	-2.65%
Current Drawdown Current decline from peak	-0.28%	-0.56%	+0.28%
Average Drawdown Average peak-to-trough decline	-2.81%	-2.35%	-0.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.97%	0.71%	+0.26%

Volatility

CTHAX vs. CSTAX - Volatility Comparison

American Funds College 2030 Fund (CTHAX) has a higher volatility of 1.56% compared to American Funds College 2027 Fund (CSTAX) at 1.10%. This indicates that CTHAX's price experiences larger fluctuations and is considered to be riskier than CSTAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CTHAX	CSTAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.56%	1.10%	+0.46%
Volatility (6M) Calculated over the trailing 6-month period	3.46%	2.31%	+1.15%
Volatility (1Y) Calculated over the trailing 1-year period	4.41%	3.04%	+1.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.74%	5.16%	+1.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.84%	5.79%	+2.05%

CTHAX vs. CSTAX - Expense Ratio Comparison

Both CTHAX and CSTAX have an expense ratio of 0.41%.

Dividends

CTHAX vs. CSTAX - Dividend Comparison

CTHAX's dividend yield for the trailing twelve months is around 5.42%, more than CSTAX's 5.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CSTAX American Funds College 2027 Fund	5.20%	5.26%	3.78%	3.17%	3.40%	7.52%	5.72%	4.00%	4.78%	3.90%	4.34%	4.49%
CTHAX American Funds College 2030 Fund	5.42%	5.55%	3.94%	2.98%	4.05%	12.40%	5.63%	4.55%	6.43%	3.74%	4.26%	4.01%

Frequently Asked Questions

Can I hold both CTHAX and CSTAX in my portfolio?

With a correlation of 0.93, CTHAX and CSTAX 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, CTHAX or CSTAX?

CTHAX has higher volatility (1.56%) compared to CSTAX (1.10%). In terms of maximum drawdown, CTHAX dropped -17.17% vs CSTAX's -14.52%.

Which has better risk-adjusted returns?

CSTAX currently has the higher Sharpe Ratio (2.25 vs 2.22), 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.