FFGZX vs. TLT
FFGZX (Fidelity Freedom Index Income Fund Institutional Premium Class) and TLT (iShares 20+ Year Treasury Bond ETF) are both funds - FFGZX is a Target Retirement Date fund managed by Fidelity, while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Over the past 10 years, FFGZX returned 4.30%/yr vs -1.74%/yr for TLT. At a 0.45 correlation, their price movements are largely independent. FFGZX charges 0.08%/yr vs 0.15%/yr for TLT.
Performance
FFGZX vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, FFGZX achieves a 3.81% return, which is significantly higher than TLT's 0.77% return. Over the past 10 years, FFGZX has outperformed TLT with an annualized return of 4.30%, while TLT has yielded a comparatively lower -1.74% annualized return.
FFGZX
- 1D
- -0.16%
- 1M
- 0.66%
- YTD
- 3.81%
- 6M
- 3.79%
- 1Y
- 9.19%
- 3Y*
- 7.39%
- 5Y*
- 3.08%
- 10Y*
- 4.30%
TLT
- 1D
- 0.13%
- 1M
- 2.20%
- YTD
- 0.77%
- 6M
- 0.38%
- 1Y
- 3.87%
- 3Y*
- -1.89%
- 5Y*
- -6.59%
- 10Y*
- -1.74%
FFGZX vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FFGZX Fidelity Freedom Index Income Fund Institutional Premium Class | 3.81% | 9.13% | 5.02% | 8.32% | -11.07% | 2.85% | 8.59% | 10.68% | -0.80% | 6.73% |
TLT iShares 20+ Year Treasury Bond ETF | 0.77% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between FFGZX and TLT is 0.66, 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 | 0.66 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.74 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.68 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.51 |
Correlation (All Time) Calculated using the full available price history since Jun 29, 2015 | 0.45 |
Over the past year, FFGZX and TLT have become more correlated (0.66) than their long-term average of 0.45, meaning their price movements have been converging.
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Return for Risk
FFGZX vs. TLT — Risk / Return Rank
FFGZX
TLT
FFGZX vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Fidelity Freedom Index Income Fund Institutional Premium Class (FFGZX) and iShares 20+ Year Treasury Bond ETF (TLT). 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.
| FFGZX | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.79 | ||
| Sortino ratioReturn per unit of downside risk | +2.57 | ||
| Omega ratioGain probability vs. loss probability | 1.44 | 1.07 | +0.37 |
| Calmar ratioReturn relative to maximum drawdown | 2.86 | 0.51 | +2.34 |
| Martin ratioReturn relative to average drawdown | 12.41 | 1.22 | +11.19 |
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Drawdowns
FFGZX vs. TLT - Drawdown Comparison
The maximum FFGZX drawdown since its inception was -14.94%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for FFGZX and TLT.
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Drawdown Indicators
| FFGZX | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.94% | -48.35% | +33.41% |
Max Drawdown (1Y)Largest decline over 1 year | -3.33% | -7.58% | +4.25% |
Max Drawdown (3Y)Largest decline over 3 years | -4.76% | -19.18% | +14.42% |
Max Drawdown (5Y)Largest decline over 5 years | -14.94% | -43.70% | +28.76% |
Max Drawdown (10Y)Largest decline over 10 years | -14.94% | -48.35% | +33.41% |
Current DrawdownCurrent decline from peak | -0.45% | -39.82% | +39.37% |
Average DrawdownAverage peak-to-trough decline | -2.26% | -13.87% | +11.61% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.76% | 3.18% | -2.42% |
Volatility
FFGZX vs. TLT - Volatility Comparison
The current volatility for Fidelity Freedom Index Income Fund Institutional Premium Class (FFGZX) is 1.86%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.20%. This indicates that FFGZX experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FFGZX | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.86% | 2.20% | -0.34% |
Volatility (6M)Calculated over the trailing 6-month period | 3.68% | 6.62% | -2.94% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.32% | 9.48% | -5.16% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.14% | 15.82% | -10.68% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.46% | 14.88% | -10.42% |
FFGZX vs. TLT - Expense Ratio Comparison
FFGZX has a 0.08% expense ratio, which is lower than TLT's 0.15% 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
FFGZX vs. TLT - Dividend Comparison
FFGZX's dividend yield for the trailing twelve months is around 3.22%, less than TLT's 4.54% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FFGZX Fidelity Freedom Index Income Fund Institutional Premium Class | 3.22% | 3.30% | 3.18% | 2.88% | 3.11% | 2.10% | 2.22% | 7.35% | 3.00% | 1.95% | 1.56% | 1.06% |
TLT iShares 20+ Year Treasury Bond ETF | 4.54% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
Frequently Asked Questions
FFGZX and TLT have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.20%) compared to FFGZX (1.86%). In terms of maximum drawdown, FFGZX dropped -14.94% vs TLT's -48.35%.
FFGZX currently has the higher Sharpe Ratio (2.20 vs 0.41), 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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