PARFX vs. AALTX
Compare and contrast key facts about T. Rowe Price Retirement 2050 Fund (PARFX) and American Funds 2050 Target Date Retirement Fund (AALTX).
PARFX is managed by T. Rowe Price. It was launched on Dec 28, 2006. AALTX is managed by American Funds. It was launched on Jan 31, 2007.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: PARFX or AALTX.
Key characteristics
| PARFX | AALTX | |
|---|---|---|
| YTD Return | 18.07% | 18.05% |
| 1Y Return | 29.17% | 29.25% |
| 3Y Return (Ann) | 4.02% | 4.51% |
| 5Y Return (Ann) | 10.75% | 10.92% |
| 10Y Return (Ann) | 9.17% | 9.62% |
| Sharpe Ratio | 2.72 | 2.84 |
| Sortino Ratio | 3.71 | 3.90 |
| Omega Ratio | 1.50 | 1.53 |
| Calmar Ratio | 2.29 | 2.57 |
| Martin Ratio | 17.87 | 19.02 |
| Ulcer Index | 1.71% | 1.61% |
| Daily Std Dev | 11.21% | 10.78% |
| Max Drawdown | -53.67% | -48.76% |
| Current Drawdown | 0.00% | 0.00% |
Correlation
The correlation between PARFX and AALTX is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
PARFX vs. AALTX - Performance Comparison
The year-to-date returns for both stocks are quite close, with PARFX having a 18.07% return and AALTX slightly lower at 18.05%. Both investments have delivered pretty close results over the past 10 years, with PARFX having a 9.17% annualized return and AALTX not far ahead at 9.62%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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PARFX vs. AALTX - Expense Ratio Comparison
PARFX has a 0.89% expense ratio, which is higher than AALTX's 0.33% expense ratio.
Risk-Adjusted Performance
PARFX vs. AALTX - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Retirement 2050 Fund (PARFX) and American Funds 2050 Target Date Retirement Fund (AALTX). 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.
Dividends
PARFX vs. AALTX - Dividend Comparison
PARFX's dividend yield for the trailing twelve months is around 0.97%, less than AALTX's 1.08% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PARFX T. Rowe Price Retirement 2050 Fund | 0.97% | 1.14% | 0.90% | 0.45% | 0.63% | 1.29% | 1.22% | 1.10% | 1.07% | 1.19% | 1.05% | 0.85% |
AALTX American Funds 2050 Target Date Retirement Fund | 1.08% | 1.28% | 0.74% | 0.73% | 0.63% | 0.86% | 0.94% | 0.79% | 0.92% | 0.65% | 4.70% | 3.18% |
Drawdowns
PARFX vs. AALTX - Drawdown Comparison
The maximum PARFX drawdown since its inception was -53.67%, which is greater than AALTX's maximum drawdown of -48.76%. Use the drawdown chart below to compare losses from any high point for PARFX and AALTX. For additional features, visit the drawdowns tool.
Volatility
PARFX vs. AALTX - Volatility Comparison
T. Rowe Price Retirement 2050 Fund (PARFX) has a higher volatility of 2.99% compared to American Funds 2050 Target Date Retirement Fund (AALTX) at 2.84%. This indicates that PARFX's price experiences larger fluctuations and is considered to be riskier than AALTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.