NDARX vs. NAARX

Last updated Jun 5, 2026

NDARX (American Funds Retirement Income Portfolio - Enhanced) and NAARX (American Funds Retirement Income Portfolio - Conservative) are both Diversified Portfolio funds from American Funds. Over the past 10 years, NDARX returned 8.45%/yr vs 5.52%/yr for NAARX. Their correlation of 0.92 suggests significant overlap in exposure. Both charge a 0.34% expense ratio.

Performance

NDARX vs. NAARX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Retirement Income Portfolio - Enhanced (NDARX) and American Funds Retirement Income Portfolio - Conservative (NAARX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NDARX achieves a 6.53% return, which is significantly higher than NAARX's 3.14% return. Over the past 10 years, NDARX has outperformed NAARX with an annualized return of 8.45%, while NAARX has yielded a comparatively lower 5.52% annualized return.

NDARX

• 1D: -0.43%
• 1M: 1.77%
• YTD: 6.53%
• 6M: 7.20%
• 1Y: 17.36%
• 3Y*: 14.61%
• 5Y*: 7.81%
• 10Y*: 8.45%

NAARX

• 1D: -0.30%
• 1M: 0.77%
• YTD: 3.14%
• 6M: 3.55%
• 1Y: 10.49%
• 3Y*: 9.41%
• 5Y*: 4.33%
• 10Y*: 5.52%

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

NDARX vs. NAARX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NDARX American Funds Retirement Income Portfolio - Enhanced	6.53%	17.21%	11.68%	12.03%	-10.98%	15.09%	7.10%	17.88%	-4.99%	13.62%
NAARX American Funds Retirement Income Portfolio - Conservative	3.14%	13.24%	6.80%	6.89%	-10.04%	8.51%	8.40%	13.11%	-2.76%	8.89%

Correlation

The correlation between NDARX and NAARX is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since Jan 5, 2016	0.92

The correlation between NDARX and NAARX has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.

Return for Risk

NDARX vs. NAARX — Risk / Return Rank

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

NDARX

NDARX Risk / Return Rank: 59
NDARX Sharpe Ratio Rank: 63
NDARX Sortino Ratio Rank: 61
NDARX Omega Ratio Rank: 64
NDARX Calmar Ratio Rank: 47
NDARX Martin Ratio Rank: 59

NAARX

NAARX Risk / Return Rank: 48
NAARX Sharpe Ratio Rank: 55
NAARX Sortino Ratio Rank: 54
NAARX Omega Ratio Rank: 57
NAARX Calmar Ratio Rank: 33
NAARX Martin Ratio Rank: 40

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.

NDARX vs. NAARX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Retirement Income Portfolio - Enhanced (NDARX) and American Funds Retirement Income Portfolio - Conservative (NAARX). 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.

	NDARX	NAARX	Difference
Sharpe ratio: Return per unit of total volatility	2.33	2.17	+0.16
Sortino ratio: Return per unit of downside risk	3.29	3.08	+0.21
Omega ratio: Gain probability vs. loss probability	1.44	1.41	+0.03
Calmar ratio: Return relative to maximum drawdown	2.59	2.11	+0.48
Martin ratio: Return relative to average drawdown	11.68	8.57	+3.11
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NDARX vs. NAARX - Sharpe Ratio Comparison

The current NDARX Sharpe Ratio is 2.33, which is comparable to the NAARX Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of NDARX and NAARX, 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

	NDARX	NAARX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.33	2.17	+0.16
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.83	0.66	+0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.83	0.86	-0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.86	0.91	-0.05

Drawdowns

NDARX vs. NAARX - Drawdown Comparison

The maximum NDARX drawdown since its inception was -23.62%, which is greater than NAARX's maximum drawdown of -15.66%. Use the drawdown chart below to compare losses from any high point for NDARX and NAARX.

Drawdown Indicators

	NDARX	NAARX	Difference
Max Drawdown Largest peak-to-trough decline	-23.62%	-15.66%	-7.96%
Max Drawdown (1Y) Largest decline over 1 year	-6.86%	-5.21%	-1.65%
Max Drawdown (3Y) Largest decline over 3 years	-9.18%	-6.21%	-2.97%
Max Drawdown (5Y) Largest decline over 5 years	-18.37%	-15.66%	-2.71%
Max Drawdown (10Y) Largest decline over 10 years	-23.62%	-15.66%	-7.96%
Current Drawdown Current decline from peak	-0.43%	-0.83%	+0.40%
Average Drawdown Average peak-to-trough decline	-3.09%	-2.52%	-0.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.52%	1.28%	+0.24%

Volatility

NDARX vs. NAARX - Volatility Comparison

American Funds Retirement Income Portfolio - Enhanced (NDARX) has a higher volatility of 2.33% compared to American Funds Retirement Income Portfolio - Conservative (NAARX) at 1.69%. This indicates that NDARX's price experiences larger fluctuations and is considered to be riskier than NAARX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NDARX	NAARX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.33%	1.69%	+0.64%
Volatility (6M) Calculated over the trailing 6-month period	6.12%	4.08%	+2.04%
Volatility (1Y) Calculated over the trailing 1-year period	7.63%	5.07%	+2.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.49%	6.58%	+2.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.21%	6.41%	+3.80%

NDARX vs. NAARX - Expense Ratio Comparison

Both NDARX and NAARX have an expense ratio of 0.34%.

Dividends

NDARX vs. NAARX - Dividend Comparison

NDARX's dividend yield for the trailing twelve months is around 4.91%, more than NAARX's 2.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
NAARX American Funds Retirement Income Portfolio - Conservative	2.70%	3.27%	3.37%	3.17%	3.19%	2.98%	3.84%	3.28%	3.33%	2.23%	2.21%
NDARX American Funds Retirement Income Portfolio - Enhanced	4.91%	5.78%	3.07%	3.37%	5.60%	4.29%	2.91%	4.03%	4.29%	2.68%	2.86%

Frequently Asked Questions

Can I hold both NDARX and NAARX in my portfolio?

With a correlation of 0.93, NDARX and NAARX 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, NDARX or NAARX?

NDARX has higher volatility (2.33%) compared to NAARX (1.69%). In terms of maximum drawdown, NDARX dropped -23.62% vs NAARX's -15.66%.

Which has better risk-adjusted returns?

NDARX currently has the higher Sharpe Ratio (2.33 vs 2.17), 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.