RFGTX vs. FRQHX

Last updated Jul 11, 2026

RFGTX (American Funds 2040 Target Date Retirement Fund Class R6) and FRQHX (Fidelity Managed Retirement 2010 Fund Class K6) are both Target Retirement Date funds. Over the past 5 years, RFGTX returned 9.10%/yr vs 2.97%/yr for FRQHX. A 0.78 correlation means they provide meaningful diversification when combined. RFGTX charges 0.36%/yr vs 0.26%/yr for FRQHX.

Performance

RFGTX vs. FRQHX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds 2040 Target Date Retirement Fund Class R6 (RFGTX) and Fidelity Managed Retirement 2010 Fund Class K6 (FRQHX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RFGTX achieves a 8.99% return, which is significantly higher than FRQHX's 3.71% return.

RFGTX

• 1D: 0.60%
• 1M: 1.20%
• 6M: 6.32%
• YTD: 8.99%
• 1Y: 17.57%
• 3Y*: 17.44%
• 5Y*: 9.10%
• 10Y*: 11.73%

FRQHX

• 1D: 0.00%
• 1M: 0.00%
• 6M: 2.85%
• YTD: 3.71%
• 1Y: 8.50%
• 3Y*: 7.44%
• 5Y*: 2.97%
• 10Y*: —

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

RFGTX vs. FRQHX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
RFGTX American Funds 2040 Target Date Retirement Fund Class R6	8.99%	19.52%	14.80%	19.33%	-17.53%	16.88%	18.79%	7.95%
FRQHX Fidelity Managed Retirement 2010 Fund Class K6	3.71%	10.01%	4.68%	8.75%	-12.22%	4.04%	9.80%	3.95%

Correlation

The correlation between RFGTX and FRQHX is 0.80, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (All Time) Calculated using the full available price history since Aug 1, 2019	0.78

The correlation between RFGTX and FRQHX has been stable across timeframes, ranging from 0.75 to 0.80 - a consistent structural relationship.

Return for Risk

RFGTX vs. FRQHX — Risk / Return Rank

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

RFGTX

RFGTX Risk / Return Rank: 52
RFGTX Sharpe Ratio Rank: 51
RFGTX Sortino Ratio Rank: 51
RFGTX Omega Ratio Rank: 51
RFGTX Calmar Ratio Rank: 46
RFGTX Martin Ratio Rank: 60

FRQHX

FRQHX Risk / Return Rank: 84
FRQHX Sharpe Ratio Rank: 86
FRQHX Sortino Ratio Rank: 84
FRQHX Omega Ratio Rank: 85
FRQHX Calmar Ratio Rank: 79
FRQHX Martin Ratio Rank: 84

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.

RFGTX vs. FRQHX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds 2040 Target Date Retirement Fund Class R6 (RFGTX) and Fidelity Managed Retirement 2010 Fund Class K6 (FRQHX). 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.

	RFGTX	FRQHX	Difference
Sharpe ratio: Return per unit of total volatility	1.59	2.26	-0.66
Sortino ratio: Return per unit of downside risk	2.27	3.27	-1.00
Omega ratio: Gain probability vs. loss probability	1.30	1.45	-0.16
Calmar ratio: Return relative to maximum drawdown	2.08	2.88	-0.80
Martin ratio: Return relative to average drawdown	9.18	12.04	-2.86

RFGTX vs. FRQHX - Sharpe Ratio Comparison

The current RFGTX Sharpe Ratio is 1.59, which is comparable to the FRQHX Sharpe Ratio of 2.26. The chart below compares the historical Sharpe Ratios of RFGTX and FRQHX, 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

RFGTX vs. FRQHX - Drawdown Comparison

The maximum RFGTX drawdown since its inception was -28.52%, which is greater than FRQHX's maximum drawdown of -16.90%. Use the drawdown chart below to compare losses from any high point for RFGTX and FRQHX.

Drawdown Indicators

	RFGTX	FRQHX	Difference
Max Drawdown Largest peak-to-trough decline	-28.52%	-16.90%	-11.62%
Max Drawdown (1Y) Largest decline over 1 year	-8.39%	-3.41%	-4.98%
Max Drawdown (3Y) Largest decline over 3 years	-13.48%	-5.15%	-8.33%
Max Drawdown (5Y) Largest decline over 5 years	-24.85%	-16.90%	-7.95%
Max Drawdown (10Y) Largest decline over 10 years	-28.52%	—	—
Current Drawdown Current decline from peak	-0.47%	-0.41%	-0.06%
Average Drawdown Average peak-to-trough decline	-3.89%	-3.77%	-0.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.90%	0.81%	+1.09%

Volatility

RFGTX vs. FRQHX - Volatility Comparison

American Funds 2040 Target Date Retirement Fund Class R6 (RFGTX) has a higher volatility of 3.69% compared to Fidelity Managed Retirement 2010 Fund Class K6 (FRQHX) at 2.04%. This indicates that RFGTX's price experiences larger fluctuations and is considered to be riskier than FRQHX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RFGTX	FRQHX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.69%	2.04%	+1.65%
Volatility (6M) Calculated over the trailing 6-month period	8.92%	3.70%	+5.22%
Volatility (1Y) Calculated over the trailing 1-year period	10.95%	4.36%	+6.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.38%	5.60%	+7.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.04%	5.77%	+8.27%

RFGTX vs. FRQHX - Expense Ratio Comparison

RFGTX has a 0.36% expense ratio, which is higher than FRQHX's 0.26% expense ratio.

Dividends

RFGTX vs. FRQHX - Dividend Comparison

RFGTX's dividend yield for the trailing twelve months is around 5.70%, more than FRQHX's 3.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FRQHX Fidelity Managed Retirement 2010 Fund Class K6	3.25%	3.20%	3.20%	2.95%	5.25%	6.22%	3.70%	2.57%	0.00%	0.00%	0.00%	0.00%
RFGTX American Funds 2040 Target Date Retirement Fund Class R6	5.70%	6.22%	3.80%	2.81%	6.71%	5.22%	3.53%	4.59%	5.29%	2.70%	3.88%	5.43%

Frequently Asked Questions

Can I hold both RFGTX and FRQHX in my portfolio?

RFGTX and FRQHX have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RFGTX or FRQHX?

RFGTX has higher volatility (3.69%) compared to FRQHX (2.04%). In terms of maximum drawdown, RFGTX dropped -28.52% vs FRQHX's -16.90%.

Which has better risk-adjusted returns?

FRQHX currently has the higher Sharpe Ratio (2.26 vs 1.59), 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.