FFFFX vs. TIBAX

Last updated Jun 3, 2026

FFFFX (Fidelity Freedom 2040 Fund) and TIBAX (Thornburg Investment Income Builder Fund) are both mutual funds - FFFFX is a Target Retirement Date fund managed by Fidelity, while TIBAX is a Global Allocation fund managed by Thornburg. Over the past 10 years, FFFFX returned 11.92%/yr vs 12.35%/yr for TIBAX. Their correlation of 0.84 suggests significant overlap in exposure. FFFFX charges 0.75%/yr vs 1.14%/yr for TIBAX.

Performance

FFFFX vs. TIBAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Freedom 2040 Fund (FFFFX) and Thornburg Investment Income Builder Fund (TIBAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FFFFX achieves a 11.51% return, which is significantly lower than TIBAX's 17.18% return. Both investments have delivered pretty close results over the past 10 years, with FFFFX having a 11.92% annualized return and TIBAX not far ahead at 12.35%.

FFFFX

• 1D: 0.21%
• 1M: 3.54%
• YTD: 11.51%
• 6M: 13.54%
• 1Y: 27.63%
• 3Y*: 18.91%
• 5Y*: 9.29%
• 10Y*: 11.92%

TIBAX

• 1D: 0.13%
• 1M: 2.00%
• YTD: 17.18%
• 6M: 20.85%
• 1Y: 38.88%
• 3Y*: 26.26%
• 5Y*: 15.98%
• 10Y*: 12.35%

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

FFFFX vs. TIBAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FFFFX Fidelity Freedom 2040 Fund	11.51%	22.01%	13.20%	20.06%	-18.31%	16.57%	18.24%	25.38%	-8.94%	22.26%
TIBAX Thornburg Investment Income Builder Fund	17.18%	36.62%	13.23%	18.01%	-7.95%	20.08%	-0.67%	17.72%	-4.54%	14.83%

Correlation

The correlation between FFFFX and TIBAX is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Dec 26, 2002	0.84

Over the past year, the correlation between FFFFX and TIBAX has dropped to 0.62 - well below their long-term average of 0.84, suggesting their price drivers have been diverging.

Return for Risk

FFFFX vs. TIBAX — Risk / Return Rank

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

FFFFX

FFFFX Risk / Return Rank: 71
FFFFX Sharpe Ratio Rank: 73
FFFFX Sortino Ratio Rank: 68
FFFFX Omega Ratio Rank: 70
FFFFX Calmar Ratio Rank: 69
FFFFX Martin Ratio Rank: 75

TIBAX

TIBAX Risk / Return Rank: 98
TIBAX Sharpe Ratio Rank: 99
TIBAX Sortino Ratio Rank: 98
TIBAX Omega Ratio Rank: 97
TIBAX Calmar Ratio Rank: 97
TIBAX Martin Ratio Rank: 97

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.

FFFFX vs. TIBAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Freedom 2040 Fund (FFFFX) and Thornburg Investment Income Builder Fund (TIBAX). 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.

	FFFFX	TIBAX	Difference
Sharpe ratio Return per unit of total volatility	2.49	4.75	-2.26
Sortino ratio Return per unit of downside risk	3.44	6.81	-3.37
Omega ratio Gain probability vs. loss probability	1.47	1.96	-0.49
Calmar ratio Return relative to maximum drawdown	3.22	7.37	-4.15
Martin ratio Return relative to average drawdown	14.21	28.83	-14.62
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FFFFX vs. TIBAX - Sharpe Ratio Comparison

The current FFFFX Sharpe Ratio is 2.49, which is lower than the TIBAX Sharpe Ratio of 4.75. The chart below compares the historical Sharpe Ratios of FFFFX and TIBAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FFFFX	TIBAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.49	4.75	-2.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.65	1.45	-0.80
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.79	0.92	-0.13
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.79	-0.41

Drawdowns

FFFFX vs. TIBAX - Drawdown Comparison

The maximum FFFFX drawdown since its inception was -54.10%, which is greater than TIBAX's maximum drawdown of -49.12%. Use the drawdown chart below to compare losses from any high point for FFFFX and TIBAX.

Drawdown Indicators

	FFFFX	TIBAX	Difference
Max Drawdown Largest peak-to-trough decline	-54.10%	-49.12%	-4.98%
Max Drawdown (1Y) Largest decline over 1 year	-8.71%	-5.43%	-3.28%
Max Drawdown (3Y) Largest decline over 3 years	-14.08%	-9.20%	-4.88%
Max Drawdown (5Y) Largest decline over 5 years	-27.21%	-20.94%	-6.27%
Max Drawdown (10Y) Largest decline over 10 years	-30.93%	-34.85%	+3.92%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-11.15%	-5.99%	-5.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.97%	1.39%	+0.58%

Volatility

FFFFX vs. TIBAX - Volatility Comparison

Fidelity Freedom 2040 Fund (FFFFX) has a higher volatility of 3.75% compared to Thornburg Investment Income Builder Fund (TIBAX) at 3.08%. This indicates that FFFFX's price experiences larger fluctuations and is considered to be riskier than TIBAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FFFFX	TIBAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.75%	3.08%	+0.67%
Volatility (6M) Calculated over the trailing 6-month period	9.35%	6.95%	+2.40%
Volatility (1Y) Calculated over the trailing 1-year period	11.41%	8.42%	+2.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.37%	11.12%	+3.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.07%	13.46%	+1.61%

FFFFX vs. TIBAX - Expense Ratio Comparison

FFFFX has a 0.75% expense ratio, which is lower than TIBAX's 1.14% expense ratio.

Dividends

FFFFX vs. TIBAX - Dividend Comparison

FFFFX's dividend yield for the trailing twelve months is around 6.39%, more than TIBAX's 4.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FFFFX Fidelity Freedom 2040 Fund	6.39%	5.07%	2.63%	1.72%	12.33%	12.09%	5.67%	6.69%	7.97%	4.37%	4.05%	4.81%
TIBAX Thornburg Investment Income Builder Fund	4.88%	5.64%	5.44%	4.67%	5.62%	5.10%	4.11%	4.23%	4.49%	4.22%	3.83%	4.31%

Frequently Asked Questions

Can I hold both FFFFX and TIBAX in my portfolio?

FFFFX and TIBAX have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FFFFX or TIBAX?

FFFFX has higher volatility (3.75%) compared to TIBAX (3.08%). In terms of maximum drawdown, FFFFX dropped -54.10% vs TIBAX's -49.12%.

Which has better risk-adjusted returns?

TIBAX currently has the higher Sharpe Ratio (4.75 vs 2.49), 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.