LIPKX vs. FFFFX

Last updated Aug 4, 2026

LIPKX (BlackRock LifePath Index 2050 Fund Class K) and FFFFX (Fidelity Freedom 2040 Fund) are both Target Retirement Date funds. LIPKX is passively managed, while FFFFX is actively managed. Over the past 10 years, LIPKX returned 11.28%/yr vs 11.60%/yr for FFFFX. Their 0.97 correlation means they have historically moved very closely together. LIPKX charges 0.09%/yr vs 0.66%/yr for FFFFX.

Performance

LIPKX vs. FFFFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BlackRock LifePath Index 2050 Fund Class K (LIPKX) and Fidelity Freedom 2040 Fund (FFFFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with LIPKX having a 10.85% return and FFFFX slightly higher at 10.89%. Both investments have delivered pretty close results over the past 10 years, with LIPKX having a 11.28% annualized return and FFFFX not far ahead at 11.60%.

LIPKX

• 1D: 0.23%
• 1M: -0.32%
• 6M: 7.13%
• YTD: 10.85%
• 1Y: 22.52%
• 3Y*: 16.38%
• 5Y*: 9.33%
• 10Y*: 11.28%
• ALL TIME*: 9.83%

FFFFX

• 1D: 0.42%
• 1M: -0.76%
• 6M: 6.74%
• YTD: 10.89%
• 1Y: 22.24%
• 3Y*: 16.84%
• 5Y*: 9.17%
• 10Y*: 11.60%
• ALL TIME*: 6.17%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FFFFX Fidelity Freedom 2040 Fund	$0.00	$0.00	$0.00
LIPKX BlackRock LifePath Index 2050 Fund Class K	$0.00	$0.00	$0.00

LIPKX vs. FFFFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LIPKX BlackRock LifePath Index 2050 Fund Class K	10.85%	20.71%	12.88%	21.38%	-18.34%	18.74%	14.28%	26.78%	-7.81%	21.43%
FFFFX Fidelity Freedom 2040 Fund	10.89%	22.01%	13.20%	20.06%	-18.31%	16.57%	18.24%	25.38%	-8.94%	22.26%

Correlation

The correlation between LIPKX and FFFFX is 0.98 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.98
Correlation (3Y) Balances recent behavior with more history.	0.97
Correlation (5Y) Shows whether the relationship held over a longer period.	0.98
Correlation (10Y) Provides a long-term view across more market conditions.	0.97
Correlation (All Time) Calculated using the full available price history since May 31, 2011	0.97

The correlation between LIPKX and FFFFX has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

Return for Risk

LIPKX vs. FFFFX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

LIPKX

LIPKX Risk / Return Rank: 65
LIPKX Sharpe Ratio Rank: 63
LIPKX Sortino Ratio Rank: 60
LIPKX Omega Ratio Rank: 60
LIPKX Calmar Ratio Rank: 66
LIPKX Martin Ratio Rank: 76

FFFFX

FFFFX Risk / Return Rank: 69
FFFFX Sharpe Ratio Rank: 67
FFFFX Sortino Ratio Rank: 63
FFFFX Omega Ratio Rank: 65
FFFFX Calmar Ratio Rank: 72
FFFFX Martin Ratio Rank: 79

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

LIPKX vs. FFFFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock LifePath Index 2050 Fund Class K (LIPKX) and Fidelity Freedom 2040 Fund (FFFFX). 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.

	LIPKX	FFFFX	Difference
Sharpe ratio: Return per unit of total volatility	1.63	1.66	-0.02
Sortino ratio: Return per unit of downside risk	2.30	2.32	-0.02
Omega ratio: Gain probability vs. loss probability	1.30	1.30	-0.01
Calmar ratio: Return relative to maximum drawdown	2.35	2.43	-0.08
Martin ratio: Return relative to average drawdown	9.87	10.03	-0.16

LIPKX vs. FFFFX - Sharpe Ratio Comparison

The current LIPKX Sharpe Ratio is 1.63, which is comparable to the FFFFX Sharpe Ratio of 1.66. The chart below compares the historical Sharpe Ratios of LIPKX and FFFFX, 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

LIPKX vs. FFFFX - Drawdown Comparison

The maximum LIPKX drawdown since its inception was -34.29%, smaller than the maximum FFFFX drawdown of -54.10%. Use the drawdown chart below to compare losses from any high point for LIPKX and FFFFX.

Drawdown Indicators

	LIPKX	FFFFX	Difference
Max Drawdown Largest peak-to-trough decline	-34.29%	-54.10%	+19.81%
Max Drawdown (1Y) Largest decline over 1 year	-9.09%	-8.71%	-0.38%
Max Drawdown (3Y) Largest decline over 3 years	-17.06%	-14.08%	-2.98%
Max Drawdown (5Y) Largest decline over 5 years	-26.35%	-27.21%	+0.86%
Max Drawdown (10Y) Largest decline over 10 years	-34.29%	-30.93%	-3.36%
Current Drawdown Current decline from peak	-1.46%	-1.92%	+0.46%
Average Drawdown Average peak-to-trough decline	-4.48%	-11.08%	+6.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.16%	2.11%	+0.05%

Volatility

LIPKX vs. FFFFX - Volatility Comparison

BlackRock LifePath Index 2050 Fund Class K (LIPKX) and Fidelity Freedom 2040 Fund (FFFFX) have volatilities of 3.70% and 3.78%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LIPKX	FFFFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.70%	3.78%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	10.97%	10.96%	+0.01%
Volatility (1Y) Calculated over the trailing 1-year period	13.07%	12.79%	+0.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.64%	14.54%	+1.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.47%	15.05%	+1.42%

LIPKX vs. FFFFX - Expense Ratio Comparison

LIPKX has a 0.09% expense ratio, which is lower than FFFFX's 0.66% expense ratio.

Dividends

LIPKX vs. FFFFX - Dividend Comparison

LIPKX's dividend yield for the trailing twelve months is around 2.58%, less than FFFFX's 6.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FFFFX Fidelity Freedom 2040 Fund	6.42%	5.07%	2.63%	1.72%	12.33%	12.09%	5.67%	6.69%	7.97%	4.37%	4.05%	4.81%
LIPKX BlackRock LifePath Index 2050 Fund Class K	2.58%	2.82%	0.01%	2.14%	2.08%	2.20%	1.11%	3.33%	2.42%	2.36%	1.60%	3.17%

Frequently Asked Questions

Can I hold both LIPKX and FFFFX in my portfolio?

With a correlation of 0.98, LIPKX and FFFFX 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, LIPKX or FFFFX?

FFFFX has higher volatility (3.78%) compared to LIPKX (3.70%). In terms of maximum drawdown, LIPKX dropped -34.29% vs FFFFX's -54.10%.

Which has better risk-adjusted returns?

FFFFX currently has the higher Sharpe Ratio (1.66 vs 1.63), 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.