FIKFX vs. BNDW

Last updated Jun 23, 2026

FIKFX (Fidelity Freedom Index Income Fund Investor Class) and BNDW (Vanguard Total World Bond ETF) are both funds - FIKFX is a Target Retirement Date fund managed by Fidelity, while BNDW is a Global Bonds fund tracking the Bloomberg Global Aggregate Float Adjusted Composite Index. Over the past 5 years, FIKFX returned 3.14%/yr vs 0.25%/yr for BNDW. A 0.68 correlation means they provide meaningful diversification when combined. FIKFX charges 0.12%/yr vs 0.05%/yr for BNDW.

Performance

FIKFX vs. BNDW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Freedom Index Income Fund Investor Class (FIKFX) and Vanguard Total World Bond ETF (BNDW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FIKFX achieves a 3.97% return, which is significantly higher than BNDW's 0.73% return.

FIKFX

• 1D: 0.47%
• 1M: 0.81%
• YTD: 3.97%
• 6M: 4.02%
• 1Y: 9.61%
• 3Y*: 7.33%
• 5Y*: 3.14%
• 10Y*: 4.23%

BNDW

• 1D: -0.19%
• 1M: 0.61%
• YTD: 0.73%
• 6M: 0.84%
• 1Y: 3.26%
• 3Y*: 4.05%
• 5Y*: 0.25%
• 10Y*: —

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

FIKFX vs. BNDW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
FIKFX Fidelity Freedom Index Income Fund Investor Class	3.97%	9.23%	4.96%	8.28%	-11.09%	2.79%	8.54%	10.59%	-1.59%
BNDW Vanguard Total World Bond ETF	0.73%	5.02%	2.42%	7.18%	-12.88%	-2.10%	6.22%	8.37%	1.27%

Correlation

The correlation between FIKFX and BNDW is 0.76, 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	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (All Time) Calculated using the full available price history since Sep 6, 2018	0.68

The correlation between FIKFX and BNDW shifts across timeframes, from 0.68 (all time) to 0.79 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

FIKFX vs. BNDW — Risk / Return Rank

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

FIKFX

FIKFX Risk / Return Rank: 71
FIKFX Sharpe Ratio Rank: 70
FIKFX Sortino Ratio Rank: 74
FIKFX Omega Ratio Rank: 76
FIKFX Calmar Ratio Rank: 62
FIKFX Martin Ratio Rank: 70

BNDW

BNDW Risk / Return Rank: 26
BNDW Sharpe Ratio Rank: 28
BNDW Sortino Ratio Rank: 26
BNDW Omega Ratio Rank: 25
BNDW Calmar Ratio Rank: 26
BNDW Martin Ratio Rank: 26

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.

FIKFX vs. BNDW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Freedom Index Income Fund Investor Class (FIKFX) and Vanguard Total World Bond ETF (BNDW). 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.

	FIKFX	BNDW	Difference
Sharpe ratio: Return per unit of total volatility	2.25	0.98	+1.27
Sortino ratio: Return per unit of downside risk	3.27	1.40	+1.87
Omega ratio: Gain probability vs. loss probability	1.45	1.17	+0.28
Calmar ratio: Return relative to maximum drawdown	2.90	1.21	+1.69
Martin ratio: Return relative to average drawdown	12.61	3.27	+9.34

FIKFX vs. BNDW - Sharpe Ratio Comparison

The current FIKFX Sharpe Ratio is 2.25, which is higher than the BNDW Sharpe Ratio of 0.98. The chart below compares the historical Sharpe Ratios of FIKFX and BNDW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FIKFX vs. BNDW - Drawdown Comparison

The maximum FIKFX drawdown since its inception was -15.03%, smaller than the maximum BNDW drawdown of -17.22%. Use the drawdown chart below to compare losses from any high point for FIKFX and BNDW.

Drawdown Indicators

	FIKFX	BNDW	Difference
Max Drawdown Largest peak-to-trough decline	-15.03%	-17.22%	+2.19%
Max Drawdown (1Y) Largest decline over 1 year	-3.32%	-2.70%	-0.62%
Max Drawdown (3Y) Largest decline over 3 years	-4.76%	-4.27%	-0.49%
Max Drawdown (5Y) Largest decline over 5 years	-15.03%	-16.93%	+1.90%
Max Drawdown (10Y) Largest decline over 10 years	-15.03%	—	—
Current Drawdown Current decline from peak	-0.21%	-1.23%	+1.02%
Average Drawdown Average peak-to-trough decline	-1.72%	-4.95%	+3.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.76%	1.00%	-0.24%

Volatility

FIKFX vs. BNDW - Volatility Comparison

Fidelity Freedom Index Income Fund Investor Class (FIKFX) has a higher volatility of 1.94% compared to Vanguard Total World Bond ETF (BNDW) at 0.92%. This indicates that FIKFX's price experiences larger fluctuations and is considered to be riskier than BNDW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FIKFX	BNDW	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.94%	0.92%	+1.02%
Volatility (6M) Calculated over the trailing 6-month period	3.69%	2.70%	+0.99%
Volatility (1Y) Calculated over the trailing 1-year period	4.29%	3.36%	+0.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.17%	5.22%	-0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.47%	4.89%	-0.42%

FIKFX vs. BNDW - Expense Ratio Comparison

FIKFX has a 0.12% expense ratio, which is higher than BNDW's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FIKFX vs. BNDW - Dividend Comparison

FIKFX's dividend yield for the trailing twelve months is around 3.20%, less than BNDW's 4.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BNDW Vanguard Total World Bond ETF	4.20%	4.12%	3.90%	3.73%	2.02%	2.58%	1.56%	3.05%	1.66%	0.00%	0.00%	0.00%
FIKFX Fidelity Freedom Index Income Fund Investor Class	3.20%	3.40%	3.13%	2.85%	3.06%	2.04%	2.18%	7.27%	2.94%	1.89%	1.65%	1.39%

Frequently Asked Questions

Can I hold both FIKFX and BNDW in my portfolio?

FIKFX and BNDW have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FIKFX or BNDW?

FIKFX has higher volatility (1.94%) compared to BNDW (0.92%). In terms of maximum drawdown, FIKFX dropped -15.03% vs BNDW's -17.22%.

Which has better risk-adjusted returns?

FIKFX currently has the higher Sharpe Ratio (2.25 vs 0.98), 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.