FCQTX vs. VTTSX

Last updated Jun 23, 2026

FCQTX (American Funds 2065 Target Date Retirement Fund) and VTTSX (Vanguard Target Retirement 2060 Fund) are both Target Retirement Date funds. Over the past 5 years, FCQTX returned 10.31%/yr vs 10.43%/yr for VTTSX. With a 0.98 correlation, they move nearly in lockstep. FCQTX charges 0.01%/yr vs 0.08%/yr for VTTSX.

Performance

FCQTX vs. VTTSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2065 Target Date Retirement Fund (FCQTX) and Vanguard Target Retirement 2060 Fund (VTTSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with FCQTX having a 11.20% return and VTTSX slightly higher at 11.59%.

FCQTX

• 1D: 1.17%
• 1M: 2.47%
• YTD: 11.20%
• 6M: 11.13%
• 1Y: 26.11%
• 3Y*: 18.88%
• 5Y*: 10.31%
• 10Y*: —

VTTSX

• 1D: 1.13%
• 1M: 1.70%
• YTD: 11.59%
• 6M: 11.44%
• 1Y: 27.66%
• 3Y*: 18.39%
• 5Y*: 10.43%
• 10Y*: 11.96%

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

FCQTX vs. VTTSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FCQTX American Funds 2065 Target Date Retirement Fund	11.20%	20.74%	15.64%	21.56%	-19.63%	17.34%	47.06%
VTTSX Vanguard Target Retirement 2060 Fund	11.59%	21.43%	14.61%	20.19%	-17.48%	16.45%	42.69%

Correlation

The correlation between FCQTX and VTTSX 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	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (All Time) Calculated using the full available price history since Mar 27, 2020	0.98

The correlation between FCQTX and VTTSX has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

Return for Risk

FCQTX vs. VTTSX — Risk / Return Rank

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

FCQTX

FCQTX Risk / Return Rank: 55
FCQTX Sharpe Ratio Rank: 55
FCQTX Sortino Ratio Rank: 52
FCQTX Omega Ratio Rank: 55
FCQTX Calmar Ratio Rank: 52
FCQTX Martin Ratio Rank: 64

VTTSX

VTTSX Risk / Return Rank: 69
VTTSX Sharpe Ratio Rank: 71
VTTSX Sortino Ratio Rank: 66
VTTSX Omega Ratio Rank: 66
VTTSX Calmar Ratio Rank: 69
VTTSX Martin Ratio Rank: 75

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.

FCQTX vs. VTTSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2065 Target Date Retirement Fund (FCQTX) and Vanguard Target Retirement 2060 Fund (VTTSX). 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.

	FCQTX	VTTSX	Difference
Sharpe ratio: Return per unit of total volatility	2.01	2.25	-0.24
Sortino ratio: Return per unit of downside risk	2.79	3.08	-0.29
Omega ratio: Gain probability vs. loss probability	1.37	1.41	-0.04
Calmar ratio: Return relative to maximum drawdown	2.63	3.05	-0.43
Martin ratio: Return relative to average drawdown	11.68	13.23	-1.55

FCQTX vs. VTTSX - Sharpe Ratio Comparison

The current FCQTX Sharpe Ratio is 2.01, which is comparable to the VTTSX Sharpe Ratio of 2.25. The chart below compares the historical Sharpe Ratios of FCQTX and VTTSX, 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

FCQTX vs. VTTSX - Drawdown Comparison

The maximum FCQTX drawdown since its inception was -27.34%, smaller than the maximum VTTSX drawdown of -31.38%. Use the drawdown chart below to compare losses from any high point for FCQTX and VTTSX.

Drawdown Indicators

	FCQTX	VTTSX	Difference
Max Drawdown Largest peak-to-trough decline	-27.34%	-31.38%	+4.04%
Max Drawdown (1Y) Largest decline over 1 year	-9.83%	-8.93%	-0.90%
Max Drawdown (3Y) Largest decline over 3 years	-15.53%	-14.51%	-1.02%
Max Drawdown (5Y) Largest decline over 5 years	-27.34%	-25.40%	-1.94%
Max Drawdown (10Y) Largest decline over 10 years	—	-31.38%	—
Current Drawdown Current decline from peak	-0.04%	-0.51%	+0.47%
Average Drawdown Average peak-to-trough decline	-5.85%	-4.03%	-1.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.21%	2.06%	+0.15%

Volatility

FCQTX vs. VTTSX - Volatility Comparison

American Funds 2065 Target Date Retirement Fund (FCQTX) has a higher volatility of 5.24% compared to Vanguard Target Retirement 2060 Fund (VTTSX) at 4.88%. This indicates that FCQTX's price experiences larger fluctuations and is considered to be riskier than VTTSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FCQTX	VTTSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.24%	4.88%	+0.36%
Volatility (6M) Calculated over the trailing 6-month period	10.65%	10.03%	+0.62%
Volatility (1Y) Calculated over the trailing 1-year period	12.85%	12.12%	+0.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.86%	14.30%	+0.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.12%	15.15%	-0.03%

FCQTX vs. VTTSX - Expense Ratio Comparison

FCQTX has a 0.01% expense ratio, which is lower than VTTSX's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FCQTX vs. VTTSX - Dividend Comparison

FCQTX's dividend yield for the trailing twelve months is around 4.20%, more than VTTSX's 1.84% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VTTSX Vanguard Target Retirement 2060 Fund	1.84%	2.06%	2.20%	2.14%	2.09%	5.67%	1.83%	2.11%	2.33%	1.77%	1.98%	1.92%

Frequently Asked Questions

Can I hold both FCQTX and VTTSX in my portfolio?

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

FCQTX has higher volatility (5.24%) compared to VTTSX (4.88%). In terms of maximum drawdown, FCQTX dropped -27.34% vs VTTSX's -31.38%.

Which has better risk-adjusted returns?

VTTSX currently has the higher Sharpe Ratio (2.25 vs 2.01), 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.