FAPTX vs. VTTVX

Last updated Jul 1, 2026

FAPTX (American Funds 2025 Target Date Retirement Fund Class F-1) and VTTVX (Vanguard Target Retirement 2025 Fund) are both mutual funds - FAPTX is a Target Retirement Date fund actively managed by American Funds, while VTTVX is a Diversified Portfolio fund managed by Vanguard. Over the past 10 years, FAPTX returned 7.81%/yr vs 7.91%/yr for VTTVX. With a 0.97 correlation, they move nearly in lockstep. FAPTX charges 0.67%/yr vs 0.08%/yr for VTTVX.

Performance

FAPTX vs. VTTVX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2025 Target Date Retirement Fund Class F-1 (FAPTX) and Vanguard Target Retirement 2025 Fund (VTTVX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FAPTX achieves a 5.09% return, which is significantly lower than VTTVX's 6.22% return. Both investments have delivered pretty close results over the past 10 years, with FAPTX having a 7.81% annualized return and VTTVX not far ahead at 7.91%.

FAPTX

• 1D: 0.42%
• 1M: 0.06%
• YTD: 5.09%
• 6M: 4.70%
• 1Y: 11.12%
• 3Y*: 11.30%
• 5Y*: 5.72%
• 10Y*: 7.81%

VTTVX

• 1D: 0.52%
• 1M: -0.24%
• YTD: 6.22%
• 6M: 5.84%
• 1Y: 13.43%
• 3Y*: 12.06%
• 5Y*: 5.80%
• 10Y*: 7.91%

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

FAPTX vs. VTTVX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAPTX American Funds 2025 Target Date Retirement Fund Class F-1	5.09%	14.15%	8.89%	11.63%	-13.11%	11.03%	13.39%	17.28%	-3.76%	14.97%
VTTVX Vanguard Target Retirement 2025 Fund	6.22%	14.63%	9.23%	14.76%	-15.57%	9.78%	13.31%	19.63%	-5.14%	13.68%

Correlation

The correlation between FAPTX and VTTVX is 0.96 - 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	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Feb 24, 2014	0.97

The correlation between FAPTX and VTTVX has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

Return for Risk

FAPTX vs. VTTVX — Risk / Return Rank

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

FAPTX

FAPTX Risk / Return Rank: 59
FAPTX Sharpe Ratio Rank: 62
FAPTX Sortino Ratio Rank: 63
FAPTX Omega Ratio Rank: 65
FAPTX Calmar Ratio Rank: 45
FAPTX Martin Ratio Rank: 59

VTTVX

VTTVX Risk / Return Rank: 67
VTTVX Sharpe Ratio Rank: 69
VTTVX Sortino Ratio Rank: 68
VTTVX Omega Ratio Rank: 69
VTTVX Calmar Ratio Rank: 62
VTTVX Martin Ratio Rank: 70

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.

FAPTX vs. VTTVX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2025 Target Date Retirement Fund Class F-1 (FAPTX) and Vanguard Target Retirement 2025 Fund (VTTVX). 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.

	FAPTX	VTTVX	Difference
Sharpe ratio: Return per unit of total volatility	1.84	1.91	-0.06
Sortino ratio: Return per unit of downside risk	2.63	2.71	-0.08
Omega ratio: Gain probability vs. loss probability	1.35	1.36	-0.01
Calmar ratio: Return relative to maximum drawdown	2.18	2.49	-0.32
Martin ratio: Return relative to average drawdown	9.63	10.61	-0.98

FAPTX vs. VTTVX - Sharpe Ratio Comparison

The current FAPTX Sharpe Ratio is 1.84, which is comparable to the VTTVX Sharpe Ratio of 1.91. The chart below compares the historical Sharpe Ratios of FAPTX and VTTVX, 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

FAPTX vs. VTTVX - Drawdown Comparison

The maximum FAPTX drawdown since its inception was -19.23%, smaller than the maximum VTTVX drawdown of -46.03%. Use the drawdown chart below to compare losses from any high point for FAPTX and VTTVX.

Drawdown Indicators

	FAPTX	VTTVX	Difference
Max Drawdown Largest peak-to-trough decline	-19.23%	-46.03%	+26.80%
Max Drawdown (1Y) Largest decline over 1 year	-5.35%	-5.57%	+0.22%
Max Drawdown (3Y) Largest decline over 3 years	-6.83%	-7.84%	+1.01%
Max Drawdown (5Y) Largest decline over 5 years	-19.05%	-21.52%	+2.47%
Max Drawdown (10Y) Largest decline over 10 years	-19.23%	-22.51%	+3.28%
Current Drawdown Current decline from peak	-0.12%	-0.56%	+0.44%
Average Drawdown Average peak-to-trough decline	-2.97%	-5.04%	+2.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.21%	1.31%	-0.10%

Volatility

FAPTX vs. VTTVX - Volatility Comparison

The current volatility for American Funds 2025 Target Date Retirement Fund Class F-1 (FAPTX) is 2.30%, while Vanguard Target Retirement 2025 Fund (VTTVX) has a volatility of 3.00%. This indicates that FAPTX experiences smaller price fluctuations and is considered to be less risky than VTTVX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAPTX	VTTVX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.30%	3.00%	-0.70%
Volatility (6M) Calculated over the trailing 6-month period	5.23%	6.14%	-0.91%
Volatility (1Y) Calculated over the trailing 1-year period	6.33%	7.29%	-0.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.25%	9.16%	-0.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.89%	9.89%	-1.00%

FAPTX vs. VTTVX - Expense Ratio Comparison

FAPTX has a 0.67% expense ratio, which is higher than VTTVX's 0.08% expense ratio.

Dividends

FAPTX vs. VTTVX - Dividend Comparison

FAPTX's dividend yield for the trailing twelve months is around 7.05%, more than VTTVX's 6.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FAPTX American Funds 2025 Target Date Retirement Fund Class F-1	7.05%	7.41%	5.22%	3.04%	3.96%	6.26%	3.63%	3.69%	4.08%	2.40%	3.30%	5.92%
VTTVX Vanguard Target Retirement 2025 Fund	6.95%	7.38%	7.63%	3.96%	2.96%	16.28%	4.35%	2.57%	3.14%	0.47%	2.68%	4.98%

Frequently Asked Questions

Can I hold both FAPTX and VTTVX in my portfolio?

With a correlation of 0.96, FAPTX and VTTVX 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, FAPTX or VTTVX?

VTTVX has higher volatility (3.00%) compared to FAPTX (2.30%). In terms of maximum drawdown, FAPTX dropped -19.23% vs VTTVX's -46.03%.

Which has better risk-adjusted returns?

VTTVX currently has the higher Sharpe Ratio (1.91 vs 1.84), 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.