RFGTX vs. FXAIX
Compare and contrast key facts about American Funds 2040 Target Date Retirement Fund Class R6 (RFGTX) and Fidelity 500 Index Fund (FXAIX).
RFGTX is an actively managed fund by American Funds. It was launched on Feb 1, 2007. FXAIX is a passively managed fund by Fidelity that tracks the performance of the S&P 500 Index. It was launched on Feb 17, 1988.
Performance
RFGTX vs. FXAIX - Performance Comparison
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RFGTX vs. FXAIX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
RFGTX American Funds 2040 Target Date Retirement Fund Class R6 | -4.71% | 19.52% | 14.80% | 19.33% | -17.53% | 16.88% | 18.79% | 24.37% | -5.51% | 21.98% |
FXAIX Fidelity 500 Index Fund | -4.34% | 17.84% | 25.01% | 26.29% | -18.14% | 28.71% | 18.42% | 31.48% | -4.43% | 21.82% |
Returns By Period
In the year-to-date period, RFGTX achieves a -4.71% return, which is significantly lower than FXAIX's -4.34% return. Over the past 10 years, RFGTX has underperformed FXAIX with an annualized return of 10.65%, while FXAIX has yielded a comparatively higher 14.08% annualized return.
RFGTX
- 1D
- -0.23%
- 1M
- -8.12%
- YTD
- -4.71%
- 6M
- -1.86%
- 1Y
- 14.78%
- 3Y*
- 13.87%
- 5Y*
- 7.66%
- 10Y*
- 10.65%
FXAIX
- 1D
- 2.92%
- 1M
- -5.02%
- YTD
- -4.34%
- 6M
- -2.14%
- 1Y
- 17.32%
- 3Y*
- 18.30%
- 5Y*
- 11.79%
- 10Y*
- 14.08%
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RFGTX vs. FXAIX - Expense Ratio Comparison
RFGTX has a 0.36% expense ratio, which is higher than FXAIX's 0.02% expense ratio.
Return for Risk
RFGTX vs. FXAIX — Risk / Return Rank
RFGTX
FXAIX
RFGTX vs. FXAIX - 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 500 Index Fund (FXAIX). 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.
| RFGTX | FXAIX | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.12 | 0.97 | +0.15 |
Sortino ratioReturn per unit of downside risk | 1.67 | 1.49 | +0.18 |
Omega ratioGain probability vs. loss probability | 1.24 | 1.23 | +0.01 |
Calmar ratioReturn relative to maximum drawdown | 1.43 | 1.52 | -0.09 |
Martin ratioReturn relative to average drawdown | 6.45 | 7.30 | -0.85 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| RFGTX | FXAIX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.12 | 0.97 | +0.15 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.58 | 0.70 | -0.12 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.76 | 0.78 | -0.02 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.73 | 0.76 | -0.04 |
Correlation
The correlation between RFGTX and FXAIX is 0.96, 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.
Dividends
RFGTX vs. FXAIX - Dividend Comparison
RFGTX's dividend yield for the trailing twelve months is around 6.52%, more than FXAIX's 1.16% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
RFGTX American Funds 2040 Target Date Retirement Fund Class R6 | 6.52% | 6.22% | 3.80% | 2.81% | 6.71% | 5.22% | 3.53% | 4.59% | 5.29% | 2.70% | 3.88% | 5.43% |
FXAIX Fidelity 500 Index Fund | 1.16% | 1.11% | 1.25% | 1.45% | 1.69% | 1.22% | 1.60% | 2.06% | 2.72% | 1.97% | 2.52% | 2.83% |
Drawdowns
RFGTX vs. FXAIX - Drawdown Comparison
The maximum RFGTX drawdown since its inception was -28.52%, smaller than the maximum FXAIX drawdown of -33.79%. Use the drawdown chart below to compare losses from any high point for RFGTX and FXAIX.
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Drawdown Indicators
| RFGTX | FXAIX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -28.52% | -33.79% | +5.27% |
Max Drawdown (1Y)Largest decline over 1 year | -9.23% | -12.13% | +2.90% |
Max Drawdown (5Y)Largest decline over 5 years | -24.85% | -24.50% | -0.35% |
Max Drawdown (10Y)Largest decline over 10 years | -28.52% | -33.79% | +5.27% |
Current DrawdownCurrent decline from peak | -8.39% | -6.23% | -2.16% |
Average DrawdownAverage peak-to-trough decline | -3.94% | -3.83% | -0.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.05% | 2.53% | -0.48% |
Volatility
RFGTX vs. FXAIX - Volatility Comparison
The current volatility for American Funds 2040 Target Date Retirement Fund Class R6 (RFGTX) is 3.97%, while Fidelity 500 Index Fund (FXAIX) has a volatility of 5.34%. This indicates that RFGTX experiences smaller price fluctuations and is considered to be less risky than FXAIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| RFGTX | FXAIX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.97% | 5.34% | -1.37% |
Volatility (6M)Calculated over the trailing 6-month period | 7.76% | 9.53% | -1.77% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.24% | 18.32% | -5.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.20% | 16.92% | -3.72% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.05% | 18.05% | -4.00% |