FFFFX vs. VTIVX

Last updated Jun 3, 2026

FFFFX (Fidelity Freedom 2040 Fund) and VTIVX (Vanguard Target Retirement 2045 Fund) are both Target Retirement Date funds. Over the past 10 years, FFFFX returned 11.92%/yr vs 11.32%/yr for VTIVX. With a 0.98 correlation, they move nearly in lockstep. FFFFX charges 0.75%/yr vs 0.08%/yr for VTIVX.

Performance

FFFFX vs. VTIVX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Freedom 2040 Fund (FFFFX) and Vanguard Target Retirement 2045 Fund (VTIVX). 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 higher than VTIVX's 10.74% return. Over the past 10 years, FFFFX has outperformed VTIVX with an annualized return of 11.92%, while VTIVX has yielded a comparatively lower 11.32% annualized return.

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%

VTIVX

• 1D: 0.26%
• 1M: 4.06%
• YTD: 10.74%
• 6M: 11.95%
• 1Y: 25.85%
• 3Y*: 18.36%
• 5Y*: 9.46%
• 10Y*: 11.32%

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

FFFFX vs. VTIVX - 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%
VTIVX Vanguard Target Retirement 2045 Fund	10.74%	20.01%	13.68%	19.72%	-17.38%	16.16%	16.31%	24.94%	-7.89%	19.16%

Correlation

The correlation between FFFFX and VTIVX is 0.98 - 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	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Oct 28, 2003	0.98

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

FFFFX vs. VTIVX - Sectors Allocation Comparison

Sectors	FFFFX	VTIVX
Technology	23.3%	27.4%
Financial Services	17.0%	16.1%
Industrials	15.4%	12.3%
Consumer Cyclical	9.1%	9.4%
Healthcare	8.8%	8.3%
Communication Services	7.9%	8.0%
Basic Materials	5.6%	4.3%
Energy	5.6%	4.3%
Consumer Defensive	4.5%	4.8%
Utilities	1.8%	2.7%
Real Estate	1.1%	2.5%

Return for Risk

FFFFX vs. VTIVX — 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

VTIVX

VTIVX Risk / Return Rank: 72
VTIVX Sharpe Ratio Rank: 76
VTIVX Sortino Ratio Rank: 72
VTIVX Omega Ratio Rank: 70
VTIVX Calmar Ratio Rank: 68
VTIVX 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.

FFFFX vs. VTIVX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Freedom 2040 Fund (FFFFX) and Vanguard Target Retirement 2045 Fund (VTIVX). 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	VTIVX	Difference
Sharpe ratio Return per unit of total volatility	2.49	2.53	-0.05
Sortino ratio Return per unit of downside risk	3.44	3.52	-0.08
Omega ratio Gain probability vs. loss probability	1.47	1.47	0.00
Calmar ratio Return relative to maximum drawdown	3.22	3.19	+0.03
Martin ratio Return relative to average drawdown	14.21	14.14	+0.07
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. VTIVX - Sharpe Ratio Comparison

The current FFFFX Sharpe Ratio is 2.49, which is comparable to the VTIVX Sharpe Ratio of 2.53. The chart below compares the historical Sharpe Ratios of FFFFX and VTIVX, 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	VTIVX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.49	2.53	-0.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.65	0.70	-0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.79	0.77	+0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.55	-0.17

Drawdowns

FFFFX vs. VTIVX - Drawdown Comparison

The maximum FFFFX drawdown since its inception was -54.10%, roughly equal to the maximum VTIVX drawdown of -51.69%. Use the drawdown chart below to compare losses from any high point for FFFFX and VTIVX.

Drawdown Indicators

	FFFFX	VTIVX	Difference
Max Drawdown Largest peak-to-trough decline	-54.10%	-51.69%	-2.41%
Max Drawdown (1Y) Largest decline over 1 year	-8.71%	-8.30%	-0.41%
Max Drawdown (3Y) Largest decline over 3 years	-14.08%	-13.40%	-0.68%
Max Drawdown (5Y) Largest decline over 5 years	-27.21%	-25.10%	-2.11%
Max Drawdown (10Y) Largest decline over 10 years	-30.93%	-31.42%	+0.49%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-11.15%	-6.33%	-4.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.97%	1.87%	+0.10%

Volatility

FFFFX vs. VTIVX - Volatility Comparison

Fidelity Freedom 2040 Fund (FFFFX) has a higher volatility of 3.75% compared to Vanguard Target Retirement 2045 Fund (VTIVX) at 3.18%. This indicates that FFFFX's price experiences larger fluctuations and is considered to be riskier than VTIVX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FFFFX	VTIVX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.75%	3.18%	+0.57%
Volatility (6M) Calculated over the trailing 6-month period	9.35%	8.38%	+0.97%
Volatility (1Y) Calculated over the trailing 1-year period	11.41%	10.52%	+0.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.37%	13.49%	+0.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.07%	14.79%	+0.28%

FFFFX vs. VTIVX - Expense Ratio Comparison

FFFFX has a 0.75% expense ratio, which is higher than VTIVX's 0.08% expense ratio.

Dividends

FFFFX vs. VTIVX - Dividend Comparison

FFFFX's dividend yield for the trailing twelve months is around 6.39%, more than VTIVX's 2.25% 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%
VTIVX Vanguard Target Retirement 2045 Fund	2.25%	2.50%	2.36%	2.27%	2.75%	15.40%	1.90%	2.23%	2.52%	0.04%	2.47%	3.29%

Frequently Asked Questions

Can I hold both FFFFX and VTIVX in my portfolio?

With a correlation of 0.98, FFFFX and VTIVX 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, FFFFX or VTIVX?

FFFFX has higher volatility (3.75%) compared to VTIVX (3.18%). In terms of maximum drawdown, FFFFX dropped -54.10% vs VTIVX's -51.69%.

Which has better risk-adjusted returns?

VTIVX currently has the higher Sharpe Ratio (2.53 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.