FFIZX vs. FBAKX

Last updated Jun 4, 2026

FFIZX (Fidelity Freedom Index 2040 Fund Institutional Premium Class) and FBAKX (Fidelity Balanced Fund Class K) are both mutual funds - FFIZX is a Target Retirement Date fund managed by Fidelity, while FBAKX is a Diversified Portfolio fund managed by Fidelity. Over the past 10 years, FFIZX returned 11.53%/yr vs 11.81%/yr for FBAKX. With a 0.96 correlation, they move nearly in lockstep. FFIZX charges 0.08%/yr vs 0.45%/yr for FBAKX.

Performance

FFIZX vs. FBAKX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Freedom Index 2040 Fund Institutional Premium Class (FFIZX) and Fidelity Balanced Fund Class K (FBAKX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FFIZX achieves a 10.94% return, which is significantly higher than FBAKX's 10.34% return. Both investments have delivered pretty close results over the past 10 years, with FFIZX having a 11.53% annualized return and FBAKX not far ahead at 11.81%.

FFIZX

• 1D: 0.38%
• 1M: 4.87%
• YTD: 10.94%
• 6M: 11.70%
• 1Y: 25.67%
• 3Y*: 18.11%
• 5Y*: 9.29%
• 10Y*: 11.53%

FBAKX

• 1D: 0.23%
• 1M: 4.06%
• YTD: 10.34%
• 6M: 10.56%
• 1Y: 25.07%
• 3Y*: 16.87%
• 5Y*: 9.59%
• 10Y*: 11.81%

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

FFIZX vs. FBAKX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FFIZX Fidelity Freedom Index 2040 Fund Institutional Premium Class	10.94%	19.93%	13.37%	19.44%	-18.15%	15.97%	16.51%	26.01%	-7.20%	20.57%
FBAKX Fidelity Balanced Fund Class K	10.34%	15.19%	16.17%	20.40%	-18.22%	18.40%	22.51%	23.94%	-3.89%	16.62%

Correlation

The correlation between FFIZX and FBAKX is 0.95 - 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	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Jun 30, 2015	0.96

The correlation between FFIZX and FBAKX has been stable across timeframes, ranging from 0.95 to 0.96 - a consistent structural relationship.

Return for Risk

FFIZX vs. FBAKX — Risk / Return Rank

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

FFIZX

FFIZX Risk / Return Rank: 71
FFIZX Sharpe Ratio Rank: 74
FFIZX Sortino Ratio Rank: 70
FFIZX Omega Ratio Rank: 68
FFIZX Calmar Ratio Rank: 69
FFIZX Martin Ratio Rank: 74

FBAKX

FBAKX Risk / Return Rank: 88
FBAKX Sharpe Ratio Rank: 90
FBAKX Sortino Ratio Rank: 88
FBAKX Omega Ratio Rank: 85
FBAKX Calmar Ratio Rank: 84
FBAKX Martin Ratio Rank: 91

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.

FFIZX vs. FBAKX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Freedom Index 2040 Fund Institutional Premium Class (FFIZX) and Fidelity Balanced Fund Class K (FBAKX). 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.

	FFIZX	FBAKX	Difference
Sharpe ratio: Return per unit of total volatility	2.50	2.99	-0.49
Sortino ratio: Return per unit of downside risk	3.48	4.20	-0.72
Omega ratio: Gain probability vs. loss probability	1.46	1.57	-0.11
Calmar ratio: Return relative to maximum drawdown	3.21	3.97	-0.76
Martin ratio: Return relative to average drawdown	14.06	19.03	-4.97
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FFIZX vs. FBAKX - Sharpe Ratio Comparison

The current FFIZX Sharpe Ratio is 2.50, which is comparable to the FBAKX Sharpe Ratio of 2.99. The chart below compares the historical Sharpe Ratios of FFIZX and FBAKX, 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

	FFIZX	FBAKX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.50	2.99	-0.49
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.79	-0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.78	0.93	-0.15
Sharpe Ratio (All Time) Calculated using the full available price history	0.71	0.68	+0.02

Drawdowns

FFIZX vs. FBAKX - Drawdown Comparison

The maximum FFIZX drawdown since its inception was -30.69%, smaller than the maximum FBAKX drawdown of -41.40%. Use the drawdown chart below to compare losses from any high point for FFIZX and FBAKX.

Drawdown Indicators

	FFIZX	FBAKX	Difference
Max Drawdown Largest peak-to-trough decline	-30.69%	-41.40%	+10.71%
Max Drawdown (1Y) Largest decline over 1 year	-8.10%	-6.47%	-1.63%
Max Drawdown (3Y) Largest decline over 3 years	-13.46%	-12.85%	-0.61%
Max Drawdown (5Y) Largest decline over 5 years	-26.07%	-22.84%	-3.23%
Max Drawdown (10Y) Largest decline over 10 years	-30.69%	-26.68%	-4.01%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.66%	-5.14%	+0.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.85%	1.34%	+0.51%

Volatility

FFIZX vs. FBAKX - Volatility Comparison

Fidelity Freedom Index 2040 Fund Institutional Premium Class (FFIZX) has a higher volatility of 3.21% compared to Fidelity Balanced Fund Class K (FBAKX) at 2.57%. This indicates that FFIZX's price experiences larger fluctuations and is considered to be riskier than FBAKX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FFIZX	FBAKX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.21%	2.57%	+0.64%
Volatility (6M) Calculated over the trailing 6-month period	8.39%	6.80%	+1.59%
Volatility (1Y) Calculated over the trailing 1-year period	10.44%	8.59%	+1.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.79%	12.18%	+1.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.88%	12.78%	+2.10%

FFIZX vs. FBAKX - Expense Ratio Comparison

FFIZX has a 0.08% expense ratio, which is lower than FBAKX's 0.45% expense ratio.

Dividends

FFIZX vs. FBAKX - Dividend Comparison

FFIZX's dividend yield for the trailing twelve months is around 2.24%, less than FBAKX's 5.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FBAKX Fidelity Balanced Fund Class K	5.17%	5.72%	5.74%	2.35%	8.15%	9.74%	5.97%	3.87%	11.09%	7.98%	3.16%	7.79%
FFIZX Fidelity Freedom Index 2040 Fund Institutional Premium Class	2.24%	2.38%	2.23%	2.00%	2.13%	2.08%	2.02%	18.32%	2.26%	1.86%	2.04%	2.04%

Frequently Asked Questions

Can I hold both FFIZX and FBAKX in my portfolio?

With a correlation of 0.95, FFIZX and FBAKX 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, FFIZX or FBAKX?

FFIZX has higher volatility (3.21%) compared to FBAKX (2.57%). In terms of maximum drawdown, FFIZX dropped -30.69% vs FBAKX's -41.40%.

Which has better risk-adjusted returns?

FBAKX currently has the higher Sharpe Ratio (2.99 vs 2.50), 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.