FAFFX vs. VTI
FAFFX (Fidelity Advisor Freedom 2040 Fund Class A) and VTI (Vanguard Total Stock Market ETF) are both funds - FAFFX is a Target Retirement Date fund managed by Fidelity, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. Over the past 10 years, FAFFX returned 11.56%/yr vs 15.31%/yr for VTI. Their correlation of 0.94 suggests significant overlap in exposure. FAFFX charges 1.00%/yr vs 0.03%/yr for VTI.
Performance
FAFFX vs. VTI - Performance Comparison
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Returns By Period
In the year-to-date period, FAFFX achieves a 11.68% return, which is significantly higher than VTI's 10.35% return. Over the past 10 years, FAFFX has underperformed VTI with an annualized return of 11.56%, while VTI has yielded a comparatively higher 15.31% annualized return.
FAFFX
- 1D
- 1.28%
- 1M
- 2.86%
- YTD
- 11.68%
- 6M
- 11.79%
- 1Y
- 25.85%
- 3Y*
- 17.45%
- 5Y*
- 9.15%
- 10Y*
- 11.56%
VTI
- 1D
- -0.32%
- 1M
- 0.55%
- YTD
- 10.35%
- 6M
- 9.59%
- 1Y
- 27.18%
- 3Y*
- 21.19%
- 5Y*
- 12.36%
- 10Y*
- 15.31%
FAFFX vs. VTI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAFFX Fidelity Advisor Freedom 2040 Fund Class A | 11.68% | 21.14% | 12.60% | 18.39% | -18.31% | 15.78% | 17.18% | 26.41% | -8.48% | 21.35% |
VTI Vanguard Total Stock Market ETF | 10.35% | 17.10% | 23.81% | 26.05% | -19.52% | 25.68% | 21.08% | 30.67% | -5.23% | 21.21% |
Correlation
The correlation between FAFFX and VTI is 0.94, 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 | 0.94 |
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 | 0.94 |
Correlation (All Time) Calculated using the full available price history since Jan 8, 2003 | 0.94 |
The correlation between FAFFX and VTI has been stable across timeframes, ranging from 0.93 to 0.94 - a consistent structural relationship.
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Return for Risk
FAFFX vs. VTI — Risk / Return Rank
FAFFX
VTI
FAFFX vs. VTI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Fidelity Advisor Freedom 2040 Fund Class A (FAFFX) 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.
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 | VTI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.04 | ||
| Sortino ratioReturn per unit of downside risk | 0.00 | ||
| Omega ratioGain probability vs. loss probability | 1.39 | 1.38 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.89 | 3.06 | -0.17 |
| Martin ratioReturn relative to average drawdown | 12.36 | 13.68 | -1.32 |
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Drawdowns
FAFFX vs. VTI - Drawdown Comparison
The maximum FAFFX drawdown since its inception was -56.14%, roughly equal to the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for FAFFX and VTI.
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Drawdown Indicators
| FAFFX | VTI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -56.14% | -55.45% | -0.69% |
Max Drawdown (1Y)Largest decline over 1 year | -8.87% | -8.92% | +0.05% |
Max Drawdown (3Y)Largest decline over 3 years | -13.90% | -19.30% | +5.40% |
Max Drawdown (5Y)Largest decline over 5 years | -27.41% | -25.36% | -2.05% |
Max Drawdown (10Y)Largest decline over 10 years | -31.28% | -35.00% | +3.72% |
Current DrawdownCurrent decline from peak | 0.00% | -1.48% | +1.48% |
Average DrawdownAverage peak-to-trough decline | -7.79% | -8.01% | +0.22% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.07% | 1.99% | +0.08% |
Volatility
FAFFX vs. VTI - Volatility Comparison
Fidelity Advisor Freedom 2040 Fund Class A (FAFFX) has a higher volatility of 5.08% compared to Vanguard Total Stock Market ETF (VTI) at 4.74%. This indicates that FAFFX'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.
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Volatility by Period
| FAFFX | VTI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.08% | 4.74% | +0.34% |
Volatility (6M)Calculated over the trailing 6-month period | 10.39% | 9.96% | +0.43% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.20% | 12.76% | -0.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.46% | 17.49% | -3.03% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.26% | 18.35% | -3.09% |
FAFFX vs. VTI - Expense Ratio Comparison
FAFFX has a 1.00% expense ratio, which is higher than VTI's 0.03% expense ratio.
Dividends
FAFFX vs. VTI - Dividend Comparison
FAFFX's dividend yield for the trailing twelve months is around 7.66%, more than VTI's 1.02% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FAFFX Fidelity Advisor Freedom 2040 Fund Class A | 7.66% | 7.09% | 2.61% | 1.16% | 10.83% | 9.81% | 5.79% | 6.93% | 11.85% | 5.16% | 4.77% | 4.04% |
VTI Vanguard Total Stock Market ETF | 1.02% | 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
With a correlation of 0.94, FAFFX 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.
FAFFX has higher volatility (5.08%) compared to VTI (4.74%). In terms of maximum drawdown, FAFFX dropped -56.14% vs VTI's -55.45%.
VTI currently has the higher Sharpe Ratio (2.14 vs 2.10), 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.
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