RFDTX vs. AMECX

Last updated Jun 25, 2026

RFDTX (American Funds 2025 Target Date Retirement Income R6) and AMECX (American Funds The Income Fund of America Class A) are both mutual funds - RFDTX is a Target Retirement Date fund tracking the S&P Target Date 2025 Index, while AMECX is a Diversified Portfolio fund actively managed by American Funds. RFDTX is passively managed, while AMECX is actively managed. Over the past 10 years, RFDTX returned 8.36%/yr vs 8.59%/yr for AMECX. Their correlation of 0.93 suggests significant overlap in exposure. RFDTX charges 0.31%/yr vs 0.56%/yr for AMECX.

Performance

RFDTX vs. AMECX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2025 Target Date Retirement Income R6 (RFDTX) and American Funds The Income Fund of America Class A (AMECX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RFDTX achieves a 4.39% return, which is significantly lower than AMECX's 5.75% return. Both investments have delivered pretty close results over the past 10 years, with RFDTX having a 8.36% annualized return and AMECX not far ahead at 8.59%.

RFDTX

• 1D: -0.35%
• 1M: 0.18%
• YTD: 4.39%
• 6M: 4.07%
• 1Y: 11.84%
• 3Y*: 11.75%
• 5Y*: 5.95%
• 10Y*: 8.36%

AMECX

• 1D: 0.04%
• 1M: -0.77%
• YTD: 5.75%
• 6M: 5.27%
• 1Y: 13.70%
• 3Y*: 13.50%
• 5Y*: 7.87%
• 10Y*: 8.59%

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

RFDTX vs. AMECX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RFDTX American Funds 2025 Target Date Retirement Income R6	4.39%	14.54%	9.35%	11.95%	-12.73%	11.49%	13.68%	17.83%	-3.46%	15.33%
AMECX American Funds The Income Fund of America Class A	5.75%	17.77%	10.84%	6.79%	-6.40%	17.37%	4.49%	18.50%	-5.27%	12.58%

Correlation

The correlation between RFDTX and AMECX is 0.82, 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	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Jan 4, 2010	0.93

The correlation between RFDTX and AMECX shifts across timeframes, from 0.82 (1 year) to 0.93 (all time), reflecting how their relationship changes across market environments.

Return for Risk

RFDTX vs. AMECX — Risk / Return Rank

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

RFDTX

RFDTX Risk / Return Rank: 57
RFDTX Sharpe Ratio Rank: 60
RFDTX Sortino Ratio Rank: 61
RFDTX Omega Ratio Rank: 62
RFDTX Calmar Ratio Rank: 45
RFDTX Martin Ratio Rank: 58

AMECX

AMECX Risk / Return Rank: 47
AMECX Sharpe Ratio Rank: 51
AMECX Sortino Ratio Rank: 50
AMECX Omega Ratio Rank: 48
AMECX Calmar Ratio Rank: 42
AMECX Martin Ratio Rank: 43

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.

RFDTX vs. AMECX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2025 Target Date Retirement Income R6 (RFDTX) and American Funds The Income Fund of America Class A (AMECX). 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.

	RFDTX	AMECX	Difference
Sharpe ratio: Return per unit of total volatility	2.00	1.93	+0.06
Sortino ratio: Return per unit of downside risk	2.85	2.73	+0.12
Omega ratio: Gain probability vs. loss probability	1.38	1.35	+0.04
Calmar ratio: Return relative to maximum drawdown	2.36	2.34	+0.03
Martin ratio: Return relative to average drawdown	10.47	8.59	+1.88

RFDTX vs. AMECX - Sharpe Ratio Comparison

The current RFDTX Sharpe Ratio is 2.00, which is comparable to the AMECX Sharpe Ratio of 1.93. The chart below compares the historical Sharpe Ratios of RFDTX and AMECX, 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

RFDTX vs. AMECX - Drawdown Comparison

The maximum RFDTX drawdown since its inception was -19.16%, smaller than the maximum AMECX drawdown of -41.92%. Use the drawdown chart below to compare losses from any high point for RFDTX and AMECX.

Drawdown Indicators

	RFDTX	AMECX	Difference
Max Drawdown Largest peak-to-trough decline	-19.16%	-41.92%	+22.76%
Max Drawdown (1Y) Largest decline over 1 year	-5.32%	-6.13%	+0.81%
Max Drawdown (3Y) Largest decline over 3 years	-6.73%	-8.58%	+1.85%
Max Drawdown (5Y) Largest decline over 5 years	-18.80%	-15.78%	-3.02%
Max Drawdown (10Y) Largest decline over 10 years	-19.16%	-26.13%	+6.97%
Current Drawdown Current decline from peak	-0.94%	-1.77%	+0.83%
Average Drawdown Average peak-to-trough decline	-2.86%	-4.45%	+1.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.20%	1.66%	-0.46%

Volatility

RFDTX vs. AMECX - Volatility Comparison

American Funds 2025 Target Date Retirement Income R6 (RFDTX) and American Funds The Income Fund of America Class A (AMECX) have volatilities of 2.29% and 2.24%, 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

	RFDTX	AMECX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.29%	2.24%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	5.16%	5.82%	-0.66%
Volatility (1Y) Calculated over the trailing 1-year period	6.31%	7.41%	-1.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.24%	9.46%	-1.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.90%	10.65%	-1.75%

RFDTX vs. AMECX - Expense Ratio Comparison

RFDTX has a 0.31% expense ratio, which is lower than AMECX's 0.56% expense ratio.

Dividends

RFDTX vs. AMECX - Dividend Comparison

RFDTX's dividend yield for the trailing twelve months is around 7.34%, less than AMECX's 9.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AMECX American Funds The Income Fund of America Class A	9.52%	9.94%	6.38%	2.93%	6.98%	6.67%	2.80%	5.01%	7.48%	4.26%	3.09%	5.09%
RFDTX American Funds 2025 Target Date Retirement Income R6	7.34%	7.67%	5.50%	3.37%	4.30%	6.54%	3.87%	4.00%	4.40%	2.67%	3.44%	6.14%

Frequently Asked Questions

Can I hold both RFDTX and AMECX in my portfolio?

RFDTX and AMECX have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RFDTX or AMECX?

RFDTX has higher volatility (2.29%) compared to AMECX (2.24%). In terms of maximum drawdown, RFDTX dropped -19.16% vs AMECX's -41.92%.

Which has better risk-adjusted returns?

RFDTX currently has the higher Sharpe Ratio (2.00 vs 1.93), 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.