FRHMX vs. RFGTX

Last updated Jun 24, 2026

FRHMX (Fidelity Managed Retirement Income Fund Class K6) and RFGTX (American Funds 2040 Target Date Retirement Fund Class R6) are both Target Retirement Date funds. Over the past 5 years, FRHMX returned 596.10%/yr vs 9.34%/yr for RFGTX. A 0.72 correlation means they provide meaningful diversification when combined. FRHMX charges 0.25%/yr vs 0.36%/yr for RFGTX.

Performance

FRHMX vs. RFGTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Managed Retirement Income Fund Class K6 (FRHMX) and American Funds 2040 Target Date Retirement Fund Class R6 (RFGTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FRHMX achieves a 1,464,383.96% return, which is significantly higher than RFGTX's 8.77% return.

FRHMX

• 1D: 1,410,365.12%
• 1M: 1,421,616.96%
• YTD: 1,464,383.96%
• 6M: 1,464,432.61%
• 1Y: 1,543,480.72%
• 3Y*: 2,494.75%
• 5Y*: 596.10%
• 10Y*: —

RFGTX

• 1D: -0.24%
• 1M: 1.53%
• YTD: 8.77%
• 6M: 8.39%
• 1Y: 21.22%
• 3Y*: 17.74%
• 5Y*: 9.34%
• 10Y*: 12.16%

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

FRHMX vs. RFGTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FRHMX Fidelity Managed Retirement Income Fund Class K6	1,464,383.96%	10.02%	4.50%	8.28%	-11.48%	2.98%	8.79%	3.17%
RFGTX American Funds 2040 Target Date Retirement Fund Class R6	8.77%	19.52%	14.80%	19.33%	-17.53%	16.88%	18.79%	7.95%

Correlation

The correlation between FRHMX and RFGTX is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (All Time) Calculated using the full available price history since Aug 1, 2019	0.72

The correlation between FRHMX and RFGTX shifts across timeframes, from 0.72 (all time) to 0.83 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

FRHMX vs. RFGTX — Risk / Return Rank

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

FRHMX

FRHMX Risk / Return Rank: 84
FRHMX Sharpe Ratio Rank: 18
FRHMX Sortino Ratio Rank: 100
FRHMX Omega Ratio Rank: 100
FRHMX Calmar Ratio Rank: 100
FRHMX Martin Ratio Rank: 100

RFGTX

RFGTX Risk / Return Rank: 56
RFGTX Sharpe Ratio Rank: 55
RFGTX Sortino Ratio Rank: 55
RFGTX Omega Ratio Rank: 55
RFGTX Calmar Ratio Rank: 52
RFGTX Martin Ratio Rank: 63

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.

FRHMX vs. RFGTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Managed Retirement Income Fund Class K6 (FRHMX) and American Funds 2040 Target Date Retirement Fund Class R6 (RFGTX). 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.

	FRHMX	RFGTX	Difference
Sharpe ratio: Return per unit of total volatility	1.14	2.03	-0.89
Sortino ratio: Return per unit of downside risk	488,367.03	2.85	+488,364.17
Omega ratio: Gain probability vs. loss probability	68,097.73	1.38	+68,096.36
Calmar ratio: Return relative to maximum drawdown	470,348.34	2.64	+470,345.70
Martin ratio: Return relative to average drawdown	1,985,653.35	11.72	+1,985,641.63

FRHMX vs. RFGTX - Sharpe Ratio Comparison

The current FRHMX Sharpe Ratio is 1.14, which is lower than the RFGTX Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of FRHMX and RFGTX, 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

FRHMX vs. RFGTX - Drawdown Comparison

The maximum FRHMX drawdown since its inception was -15.96%, smaller than the maximum RFGTX drawdown of -28.52%. Use the drawdown chart below to compare losses from any high point for FRHMX and RFGTX.

Drawdown Indicators

	FRHMX	RFGTX	Difference
Max Drawdown Largest peak-to-trough decline	-15.96%	-28.52%	+12.56%
Max Drawdown (1Y) Largest decline over 1 year	-3.42%	-8.39%	+4.97%
Max Drawdown (3Y) Largest decline over 3 years	-4.90%	-13.48%	+8.58%
Max Drawdown (5Y) Largest decline over 5 years	-15.96%	-24.85%	+8.89%
Max Drawdown (10Y) Largest decline over 10 years	—	-28.52%	—
Current Drawdown Current decline from peak	0.00%	-0.44%	+0.44%
Average Drawdown Average peak-to-trough decline	-3.49%	-3.90%	+0.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.81%	1.89%	-1.08%

Volatility

FRHMX vs. RFGTX - Volatility Comparison

Fidelity Managed Retirement Income Fund Class K6 (FRHMX) has a higher volatility of 955.41% compared to American Funds 2040 Target Date Retirement Fund Class R6 (RFGTX) at 4.11%. This indicates that FRHMX's price experiences larger fluctuations and is considered to be riskier than RFGTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FRHMX	RFGTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	955.41%	4.11%	+951.30%
Volatility (6M) Calculated over the trailing 6-month period	955.40%	8.85%	+946.55%
Volatility (1Y) Calculated over the trailing 1-year period	1,413,171.78%	10.94%	+1,413,160.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	631,989.64%	13.37%	+631,976.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	538,904.02%	14.13%	+538,889.89%

FRHMX vs. RFGTX - Expense Ratio Comparison

FRHMX has a 0.25% expense ratio, which is lower than RFGTX's 0.36% expense ratio.

Dividends

FRHMX vs. RFGTX - Dividend Comparison

FRHMX's dividend yield for the trailing twelve months is around 103.07%, more than RFGTX's 5.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FRHMX Fidelity Managed Retirement Income Fund Class K6	103.07%	3.22%	3.24%	3.02%	4.77%	3.78%	2.61%	1.95%	0.00%	0.00%	0.00%	0.00%
RFGTX American Funds 2040 Target Date Retirement Fund Class R6	5.72%	6.22%	3.80%	2.81%	6.71%	5.22%	3.53%	4.59%	5.29%	2.70%	3.88%	5.43%

Frequently Asked Questions

Can I hold both FRHMX and RFGTX in my portfolio?

FRHMX and RFGTX have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FRHMX or RFGTX?

FRHMX has higher volatility (955.41%) compared to RFGTX (4.11%). In terms of maximum drawdown, FRHMX dropped -15.96% vs RFGTX's -28.52%.

Which has better risk-adjusted returns?

RFGTX currently has the higher Sharpe Ratio (2.03 vs 1.14), 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.