ITDD vs. FBIFX

Last updated Jun 24, 2026

ITDD (Ishares Lifepath Target Date 2040 ETF) and FBIFX (Fidelity Freedom Index 2040 Fund Investor Class) are both Target Retirement Date funds. Over the past year, ITDD returned 20.04% vs 23.86% for FBIFX. With a 0.98 correlation, they move nearly in lockstep. ITDD charges 0.11%/yr vs 0.12%/yr for FBIFX.

Performance

ITDD vs. FBIFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Ishares Lifepath Target Date 2040 ETF (ITDD) and Fidelity Freedom Index 2040 Fund Investor Class (FBIFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ITDD achieves a 8.11% return, which is significantly lower than FBIFX's 10.30% return.

ITDD

• 1D: -1.22%
• 1M: 0.09%
• YTD: 8.11%
• 6M: 7.50%
• 1Y: 20.04%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FBIFX

• 1D: -0.19%
• 1M: 1.60%
• YTD: 10.30%
• 6M: 9.75%
• 1Y: 23.86%
• 3Y*: 17.55%
• 5Y*: 9.00%
• 10Y*: 11.78%

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

ITDD vs. FBIFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
ITDD Ishares Lifepath Target Date 2040 ETF	8.11%	17.66%	13.08%	12.87%
FBIFX Fidelity Freedom Index 2040 Fund Investor Class	10.30%	19.88%	13.32%	11.68%

Correlation

The correlation between ITDD and FBIFX is 0.98 - 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	0.98
Correlation (All Time) Calculated using the full available price history since Oct 19, 2023	0.98

The correlation between ITDD and FBIFX has been stable across timeframes, ranging from 0.98 to 0.98 - a consistent structural relationship.

Return for Risk

ITDD vs. FBIFX — Risk / Return Rank

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

ITDD

ITDD Risk / Return Rank: 62
ITDD Sharpe Ratio Rank: 63
ITDD Sortino Ratio Rank: 62
ITDD Omega Ratio Rank: 63
ITDD Calmar Ratio Rank: 57
ITDD Martin Ratio Rank: 66

FBIFX

FBIFX Risk / Return Rank: 70
FBIFX Sharpe Ratio Rank: 70
FBIFX Sortino Ratio Rank: 67
FBIFX Omega Ratio Rank: 68
FBIFX Calmar Ratio Rank: 70
FBIFX Martin Ratio Rank: 74

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.

ITDD vs. FBIFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Ishares Lifepath Target Date 2040 ETF (ITDD) and Fidelity Freedom Index 2040 Fund Investor Class (FBIFX). 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.

	ITDD	FBIFX	Difference
Sharpe ratio: Return per unit of total volatility	1.96	2.25	-0.29
Sortino ratio: Return per unit of downside risk	2.74	3.10	-0.37
Omega ratio: Gain probability vs. loss probability	1.36	1.42	-0.06
Calmar ratio: Return relative to maximum drawdown	2.66	3.08	-0.42
Martin ratio: Return relative to average drawdown	11.44	13.15	-1.71

ITDD vs. FBIFX - Sharpe Ratio Comparison

The current ITDD Sharpe Ratio is 1.96, which is comparable to the FBIFX Sharpe Ratio of 2.25. The chart below compares the historical Sharpe Ratios of ITDD and FBIFX, 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

ITDD vs. FBIFX - Drawdown Comparison

The maximum ITDD drawdown since its inception was -12.46%, smaller than the maximum FBIFX drawdown of -30.73%. Use the drawdown chart below to compare losses from any high point for ITDD and FBIFX.

Drawdown Indicators

	ITDD	FBIFX	Difference
Max Drawdown Largest peak-to-trough decline	-12.46%	-30.73%	+18.27%
Max Drawdown (1Y) Largest decline over 1 year	-7.56%	-8.10%	+0.54%
Max Drawdown (3Y) Largest decline over 3 years	—	-13.45%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-26.12%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-30.73%	—
Current Drawdown Current decline from peak	-1.59%	-0.60%	-0.99%
Average Drawdown Average peak-to-trough decline	-1.25%	-4.11%	+2.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.76%	1.89%	-0.13%

Volatility

ITDD vs. FBIFX - Volatility Comparison

The current volatility for Ishares Lifepath Target Date 2040 ETF (ITDD) is 4.07%, while Fidelity Freedom Index 2040 Fund Investor Class (FBIFX) has a volatility of 4.43%. This indicates that ITDD experiences smaller price fluctuations and is considered to be less risky than FBIFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ITDD	FBIFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.07%	4.43%	-0.36%
Volatility (6M) Calculated over the trailing 6-month period	8.62%	9.23%	-0.61%
Volatility (1Y) Calculated over the trailing 1-year period	10.31%	11.12%	-0.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.56%	13.88%	-2.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.56%	14.91%	-3.35%

ITDD vs. FBIFX - Expense Ratio Comparison

ITDD has a 0.11% expense ratio, which is lower than FBIFX's 0.12% 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

ITDD vs. FBIFX - Dividend Comparison

ITDD's dividend yield for the trailing twelve months is around 1.69%, less than FBIFX's 2.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FBIFX Fidelity Freedom Index 2040 Fund Investor Class	2.22%	2.35%	2.20%	1.97%	2.08%	1.96%	2.00%	18.26%	2.22%	1.82%	1.98%	2.02%
ITDD Ishares Lifepath Target Date 2040 ETF	1.69%	1.82%	1.56%	0.89%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ITDD and FBIFX in my portfolio?

With a correlation of 0.98, ITDD and FBIFX 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, ITDD or FBIFX?

FBIFX has higher volatility (4.43%) compared to ITDD (4.07%). In terms of maximum drawdown, ITDD dropped -12.46% vs FBIFX's -30.73%.

Which has better risk-adjusted returns?

FBIFX currently has the higher Sharpe Ratio (2.25 vs 1.96), 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.