FAFFX vs. ABALX
Compare and contrast key facts about Fidelity Advisor Freedom 2040 Fund Class A (FAFFX) and American Funds American Balanced Fund Class A (ABALX).
FAFFX is managed by Fidelity. It was launched on Jul 24, 2003. ABALX is managed by American Funds. It was launched on Jul 26, 1975.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FAFFX or ABALX.
Key characteristics
| FAFFX | ABALX | |
|---|---|---|
| YTD Return | 15.09% | 15.77% |
| 1Y Return | 26.05% | 24.81% |
| 3Y Return (Ann) | -0.99% | 5.50% |
| 5Y Return (Ann) | 4.52% | 8.95% |
| 10Y Return (Ann) | 3.68% | 8.43% |
| Sharpe Ratio | 2.39 | 2.93 |
| Sortino Ratio | 3.33 | 4.17 |
| Omega Ratio | 1.44 | 1.56 |
| Calmar Ratio | 1.12 | 3.44 |
| Martin Ratio | 15.81 | 20.27 |
| Ulcer Index | 1.65% | 1.22% |
| Daily Std Dev | 10.91% | 8.45% |
| Max Drawdown | -54.44% | -39.31% |
| Current Drawdown | -3.17% | -0.76% |
Correlation
The correlation between FAFFX and ABALX is 0.92, 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
FAFFX vs. ABALX - Performance Comparison
The year-to-date returns for both investments are quite close, with FAFFX having a 15.09% return and ABALX slightly higher at 15.77%. Over the past 10 years, FAFFX has underperformed ABALX with an annualized return of 3.68%, while ABALX has yielded a comparatively higher 8.43% 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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FAFFX vs. ABALX - Expense Ratio Comparison
FAFFX has a 1.00% expense ratio, which is higher than ABALX's 0.56% expense ratio.
Risk-Adjusted Performance
FAFFX vs. ABALX - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Fidelity Advisor Freedom 2040 Fund Class A (FAFFX) and American Funds American Balanced Fund Class A (ABALX). 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
FAFFX vs. ABALX - Dividend Comparison
FAFFX's dividend yield for the trailing twelve months is around 0.97%, less than ABALX's 2.14% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FAFFX Fidelity Advisor Freedom 2040 Fund Class A | 0.97% | 1.12% | 1.77% | 1.92% | 0.67% | 1.12% | 1.75% | 0.95% | 1.26% | 3.97% | 8.36% | 8.00% |
ABALX American Funds American Balanced Fund Class A | 2.14% | 2.36% | 1.69% | 1.20% | 1.32% | 1.91% | 2.10% | 1.79% | 1.77% | 2.47% | 8.09% | 1.54% |
Drawdowns
FAFFX vs. ABALX - Drawdown Comparison
The maximum FAFFX drawdown since its inception was -54.44%, which is greater than ABALX's maximum drawdown of -39.31%. Use the drawdown chart below to compare losses from any high point for FAFFX and ABALX. For additional features, visit the drawdowns tool.
Volatility
FAFFX vs. ABALX - Volatility Comparison
Fidelity Advisor Freedom 2040 Fund Class A (FAFFX) has a higher volatility of 3.01% compared to American Funds American Balanced Fund Class A (ABALX) at 2.43%. This indicates that FAFFX's price experiences larger fluctuations and is considered to be riskier than ABALX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.