FAFFX vs. FCQTX

Last updated Jun 24, 2026

FAFFX (Fidelity Advisor Freedom 2040 Fund Class A) and FCQTX (American Funds 2065 Target Date Retirement Fund) are both Target Retirement Date funds. Over the past 5 years, FAFFX returned 8.81%/yr vs 9.99%/yr for FCQTX. With a 0.97 correlation, they move nearly in lockstep. FAFFX charges 1.00%/yr vs 0.01%/yr for FCQTX.

Performance

FAFFX vs. FCQTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Advisor Freedom 2040 Fund Class A (FAFFX) and American Funds 2065 Target Date Retirement Fund (FCQTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with FAFFX having a 11.39% return and FCQTX slightly lower at 11.05%.

FAFFX

• 1D: -0.25%
• 1M: 2.60%
• YTD: 11.39%
• 6M: 10.99%
• 1Y: 24.66%
• 3Y*: 18.18%
• 5Y*: 8.81%
• 10Y*: 11.87%

FCQTX

• 1D: -0.13%
• 1M: 2.33%
• YTD: 11.05%
• 6M: 10.57%
• 1Y: 25.07%
• 3Y*: 19.48%
• 5Y*: 9.99%
• 10Y*: —

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

FAFFX vs. FCQTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FAFFX Fidelity Advisor Freedom 2040 Fund Class A	11.39%	21.14%	12.60%	18.39%	-18.31%	15.78%	45.10%
FCQTX American Funds 2065 Target Date Retirement Fund	11.05%	20.74%	15.64%	21.56%	-19.63%	17.34%	47.06%

Correlation

The correlation between FAFFX and FCQTX 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	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Mar 27, 2020	0.97

The correlation between FAFFX and FCQTX has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.

Return for Risk

FAFFX vs. FCQTX — Risk / Return Rank

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

FAFFX

FAFFX Risk / Return Rank: 61
FAFFX Sharpe Ratio Rank: 60
FAFFX Sortino Ratio Rank: 57
FAFFX Omega Ratio Rank: 61
FAFFX Calmar Ratio Rank: 62
FAFFX Martin Ratio Rank: 68

FCQTX

FCQTX Risk / Return Rank: 56
FCQTX Sharpe Ratio Rank: 55
FCQTX Sortino Ratio Rank: 53
FCQTX Omega Ratio Rank: 55
FCQTX Calmar Ratio Rank: 53
FCQTX Martin Ratio Rank: 64

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.

FAFFX vs. FCQTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Advisor Freedom 2040 Fund Class A (FAFFX) and American Funds 2065 Target Date Retirement Fund (FCQTX). 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.

	FAFFX	FCQTX	Difference
Sharpe ratio: Return per unit of total volatility	2.10	2.03	+0.07
Sortino ratio: Return per unit of downside risk	2.91	2.81	+0.09
Omega ratio: Gain probability vs. loss probability	1.39	1.38	+0.02
Calmar ratio: Return relative to maximum drawdown	2.89	2.65	+0.24
Martin ratio: Return relative to average drawdown	12.38	11.79	+0.59

FAFFX vs. FCQTX - Sharpe Ratio Comparison

The current FAFFX Sharpe Ratio is 2.10, which is comparable to the FCQTX Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of FAFFX and FCQTX, 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

FAFFX vs. FCQTX - Drawdown Comparison

The maximum FAFFX drawdown since its inception was -56.14%, which is greater than FCQTX's maximum drawdown of -27.34%. Use the drawdown chart below to compare losses from any high point for FAFFX and FCQTX.

Drawdown Indicators

	FAFFX	FCQTX	Difference
Max Drawdown Largest peak-to-trough decline	-56.14%	-27.34%	-28.80%
Max Drawdown (1Y) Largest decline over 1 year	-8.87%	-9.83%	+0.96%
Max Drawdown (3Y) Largest decline over 3 years	-13.90%	-15.53%	+1.63%
Max Drawdown (5Y) Largest decline over 5 years	-27.41%	-27.34%	-0.07%
Max Drawdown (10Y) Largest decline over 10 years	-31.28%	—	—
Current Drawdown Current decline from peak	-0.25%	-0.18%	-0.07%
Average Drawdown Average peak-to-trough decline	-7.79%	-5.85%	-1.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.07%	2.21%	-0.14%

Volatility

FAFFX vs. FCQTX - Volatility Comparison

Fidelity Advisor Freedom 2040 Fund Class A (FAFFX) and American Funds 2065 Target Date Retirement Fund (FCQTX) have volatilities of 4.97% and 5.13%, 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

	FAFFX	FCQTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.97%	5.13%	-0.16%
Volatility (6M) Calculated over the trailing 6-month period	10.35%	10.60%	-0.25%
Volatility (1Y) Calculated over the trailing 1-year period	12.22%	12.87%	-0.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.45%	14.86%	-0.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.25%	15.11%	+0.14%

FAFFX vs. FCQTX - Expense Ratio Comparison

FAFFX has a 1.00% expense ratio, which is higher than FCQTX's 0.01% expense ratio.

Dividends

FAFFX vs. FCQTX - Dividend Comparison

FAFFX's dividend yield for the trailing twelve months is around 7.68%, more than FCQTX's 4.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FAFFX Fidelity Advisor Freedom 2040 Fund Class A	7.68%	7.09%	2.61%	1.16%	10.83%	9.81%	5.79%	6.93%	11.85%	5.16%	4.77%	4.04%
FCQTX American Funds 2065 Target Date Retirement Fund	4.20%	4.67%	2.80%	1.99%	3.96%	1.54%	0.72%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FAFFX and FCQTX in my portfolio?

With a correlation of 0.97, FAFFX and FCQTX 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, FAFFX or FCQTX?

FCQTX has higher volatility (5.13%) compared to FAFFX (4.97%). In terms of maximum drawdown, FAFFX dropped -56.14% vs FCQTX's -27.34%.

Which has better risk-adjusted returns?

FAFFX currently has the higher Sharpe Ratio (2.10 vs 2.03), 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.