FHARX vs. BND

Last updated Jun 4, 2026

FHARX (Fidelity Freedom Blend 2040 Fund) and BND (Vanguard Total Bond Market ETF) are both funds - FHARX is a Target Retirement Date fund managed by Fidelity, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Over the past 5 years, FHARX returned 9.76%/yr vs 0.09%/yr for BND. At a 0.14 correlation, their price movements are largely independent. FHARX charges 0.49%/yr vs 0.03%/yr for BND.

Performance

FHARX vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Freedom Blend 2040 Fund (FHARX) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FHARX achieves a 12.10% return, which is significantly higher than BND's 0.27% return.

FHARX

• 1D: 0.56%
• 1M: 4.68%
• YTD: 12.10%
• 6M: 13.40%
• 1Y: 27.66%
• 3Y*: 19.64%
• 5Y*: 9.76%
• 10Y*: —

BND

• 1D: -0.19%
• 1M: 0.27%
• YTD: 0.27%
• 6M: 0.12%
• 1Y: 5.11%
• 3Y*: 3.96%
• 5Y*: 0.09%
• 10Y*: 1.58%

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

FHARX vs. BND - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
FHARX Fidelity Freedom Blend 2040 Fund	12.10%	21.06%	15.55%	19.98%	-19.04%	16.24%	17.79%	26.54%	-14.70%
BND Vanguard Total Bond Market ETF	0.27%	7.08%	1.38%	5.65%	-13.11%	-1.86%	7.71%	8.84%	1.08%

Correlation

The correlation between FHARX and BND is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.36
Correlation (5Y) Calculated over the trailing 5-year period	0.27
Correlation (All Time) Calculated using the full available price history since Sep 4, 2018	0.14

Over the past year, FHARX and BND have become more correlated (0.41) than their long-term average of 0.14, meaning their price movements have been converging.

Return for Risk

FHARX vs. BND — Risk / Return Rank

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

FHARX

FHARX Risk / Return Rank: 71
FHARX Sharpe Ratio Rank: 73
FHARX Sortino Ratio Rank: 69
FHARX Omega Ratio Rank: 69
FHARX Calmar Ratio Rank: 71
FHARX Martin Ratio Rank: 76

BND

BND Risk / Return Rank: 37
BND Sharpe Ratio Rank: 37
BND Sortino Ratio Rank: 39
BND Omega Ratio Rank: 35
BND Calmar Ratio Rank: 38
BND Martin Ratio Rank: 36

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.

FHARX vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Freedom Blend 2040 Fund (FHARX) and Vanguard Total Bond Market ETF (BND). 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.

	FHARX	BND	Difference
Sharpe ratio: Return per unit of total volatility	2.48	1.36	+1.13
Sortino ratio: Return per unit of downside risk	3.46	2.03	+1.42
Omega ratio: Gain probability vs. loss probability	1.46	1.24	+0.23
Calmar ratio: Return relative to maximum drawdown	3.26	1.92	+1.34
Martin ratio: Return relative to average drawdown	14.27	5.80	+8.47
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FHARX vs. BND - Sharpe Ratio Comparison

The current FHARX Sharpe Ratio is 2.48, which is higher than the BND Sharpe Ratio of 1.36. The chart below compares the historical Sharpe Ratios of FHARX and BND, 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

	FHARX	BND	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.48	1.36	+1.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.01	+0.66
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.29	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.67	0.59	+0.09

Drawdowns

FHARX vs. BND - Drawdown Comparison

The maximum FHARX drawdown since its inception was -31.37%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for FHARX and BND.

Drawdown Indicators

	FHARX	BND	Difference
Max Drawdown Largest peak-to-trough decline	-31.37%	-18.58%	-12.79%
Max Drawdown (1Y) Largest decline over 1 year	-8.63%	-2.68%	-5.95%
Max Drawdown (3Y) Largest decline over 3 years	-14.19%	-5.92%	-8.27%
Max Drawdown (5Y) Largest decline over 5 years	-27.70%	-17.91%	-9.79%
Max Drawdown (10Y) Largest decline over 10 years	—	-18.58%	—
Current Drawdown Current decline from peak	0.00%	-2.37%	+2.37%
Average Drawdown Average peak-to-trough decline	-6.06%	-3.06%	-3.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.96%	0.88%	+1.08%

Volatility

FHARX vs. BND - Volatility Comparison

Fidelity Freedom Blend 2040 Fund (FHARX) has a higher volatility of 3.81% compared to Vanguard Total Bond Market ETF (BND) at 1.23%. This indicates that FHARX's price experiences larger fluctuations and is considered to be riskier than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FHARX	BND	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.81%	1.23%	+2.58%
Volatility (6M) Calculated over the trailing 6-month period	9.24%	2.66%	+6.58%
Volatility (1Y) Calculated over the trailing 1-year period	11.31%	3.78%	+7.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.44%	6.02%	+8.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.57%	5.53%	+11.04%

FHARX vs. BND - Expense Ratio Comparison

FHARX has a 0.49% expense ratio, which is higher than BND's 0.03% expense ratio.

Dividends

FHARX vs. BND - Dividend Comparison

FHARX's dividend yield for the trailing twelve months is around 3.73%, less than BND's 3.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BND Vanguard Total Bond Market ETF	3.97%	3.86%	3.67%	3.09%	2.60%	2.12%	2.38%	2.72%	2.81%	2.54%	2.51%	2.57%
FHARX Fidelity Freedom Blend 2040 Fund	3.73%	2.81%	4.90%	1.83%	6.18%	8.65%	4.91%	3.40%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FHARX and BND in my portfolio?

FHARX and BND have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FHARX or BND?

FHARX has higher volatility (3.81%) compared to BND (1.23%). In terms of maximum drawdown, FHARX dropped -31.37% vs BND's -18.58%.

Which has better risk-adjusted returns?

FHARX currently has the higher Sharpe Ratio (2.48 vs 1.36), 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.