RNWGX vs. VTTSX

Last updated Aug 1, 2026

RNWGX (American Funds New World Fund® Class R-6) and VTTSX (Vanguard Target Retirement 2060 Fund) are both mutual funds - RNWGX is a Emerging Markets Equities fund managed by American Funds, while VTTSX is a Target Retirement Date fund managed by Vanguard. Over the past 10 years, RNWGX returned 10.39%/yr vs 11.41%/yr for VTTSX. Their correlation of 0.89 means they have usually moved in the same direction. RNWGX charges 0.57%/yr vs 0.08%/yr for VTTSX.

Performance

RNWGX vs. VTTSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds New World Fund® Class R-6 (RNWGX) and Vanguard Target Retirement 2060 Fund (VTTSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RNWGX achieves a 11.86% return, which is significantly higher than VTTSX's 10.02% return. Over the past 10 years, RNWGX has underperformed VTTSX with an annualized return of 10.39%, while VTTSX has yielded a comparatively higher 11.41% annualized return.

RNWGX

• 1D: 3.30%
• 1M: -1.63%
• 6M: 5.54%
• YTD: 11.86%
• 1Y: 26.74%
• 3Y*: 15.49%
• 5Y*: 6.52%
• 10Y*: 10.39%
• ALL TIME*: 7.80%

VTTSX

• 1D: 1.90%
• 1M: -0.46%
• 6M: 6.80%
• YTD: 10.02%
• 1Y: 21.68%
• 3Y*: 16.60%
• 5Y*: 9.54%
• 10Y*: 11.41%
• ALL TIME*: 10.86%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
RNWGX American Funds New World Fund® Class R-6	$0.00	$0.00	$0.00
VTTSX Vanguard Target Retirement 2060 Fund	$0.00	$0.00	$0.00

RNWGX vs. VTTSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RNWGX American Funds New World Fund® Class R-6	11.86%	28.67%	6.88%	16.26%	-21.77%	5.09%	25.30%	28.03%	-12.00%	33.07%
VTTSX Vanguard Target Retirement 2060 Fund	10.02%	21.43%	14.61%	20.19%	-17.48%	16.45%	16.33%	26.18%	-8.78%	21.40%

Correlation

The correlation between RNWGX and VTTSX is 0.86, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.86
Correlation (3Y) Balances recent behavior with more history.	0.87
Correlation (5Y) Shows whether the relationship held over a longer period.	0.90
Correlation (10Y) Provides a long-term view across more market conditions.	0.89
Correlation (All Time) Calculated using the full available price history since Jan 19, 2012	0.89

The correlation between RNWGX and VTTSX has been stable across timeframes, ranging from 0.86 to 0.90 - a consistent structural relationship.

Return for Risk

RNWGX vs. VTTSX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

RNWGX

RNWGX Risk / Return Rank: 55
RNWGX Sharpe Ratio Rank: 57
RNWGX Sortino Ratio Rank: 54
RNWGX Omega Ratio Rank: 59
RNWGX Calmar Ratio Rank: 55
RNWGX Martin Ratio Rank: 52

VTTSX

VTTSX Risk / Return Rank: 71
VTTSX Sharpe Ratio Rank: 70
VTTSX Sortino Ratio Rank: 67
VTTSX Omega Ratio Rank: 68
VTTSX Calmar Ratio Rank: 71
VTTSX Martin Ratio Rank: 79

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

RNWGX vs. VTTSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds New World Fund® Class R-6 (RNWGX) and Vanguard Target Retirement 2060 Fund (VTTSX). 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.

	RNWGX	VTTSX	Difference
Sharpe ratio: Return per unit of total volatility	1.39	1.58	-0.19
Sortino ratio: Return per unit of downside risk	1.95	2.23	-0.28
Omega ratio: Gain probability vs. loss probability	1.26	1.29	-0.02
Calmar ratio: Return relative to maximum drawdown	1.90	2.24	-0.34
Martin ratio: Return relative to average drawdown	6.88	9.30	-2.42

RNWGX vs. VTTSX - Sharpe Ratio Comparison

The current RNWGX Sharpe Ratio is 1.39, which is comparable to the VTTSX Sharpe Ratio of 1.58. The chart below compares the historical Sharpe Ratios of RNWGX and VTTSX, 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

RNWGX vs. VTTSX - Drawdown Comparison

The maximum RNWGX drawdown since its inception was -33.40%, which is greater than VTTSX's maximum drawdown of -31.38%. Use the drawdown chart below to compare losses from any high point for RNWGX and VTTSX.

Drawdown Indicators

	RNWGX	VTTSX	Difference
Max Drawdown Largest peak-to-trough decline	-33.40%	-31.38%	-2.02%
Max Drawdown (1Y) Largest decline over 1 year	-13.00%	-8.93%	-4.07%
Max Drawdown (3Y) Largest decline over 3 years	-15.00%	-14.51%	-0.49%
Max Drawdown (5Y) Largest decline over 5 years	-33.40%	-25.40%	-8.00%
Max Drawdown (10Y) Largest decline over 10 years	-33.40%	-31.38%	-2.02%
Current Drawdown Current decline from peak	-5.86%	-1.92%	-3.94%
Average Drawdown Average peak-to-trough decline	-8.02%	-4.01%	-4.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.58%	2.14%	+1.44%

Volatility

RNWGX vs. VTTSX - Volatility Comparison

American Funds New World Fund® Class R-6 (RNWGX) has a higher volatility of 7.07% compared to Vanguard Target Retirement 2060 Fund (VTTSX) at 3.75%. This indicates that RNWGX's price experiences larger fluctuations and is considered to be riskier than VTTSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RNWGX	VTTSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.07%	3.75%	+3.32%
Volatility (6M) Calculated over the trailing 6-month period	15.91%	10.51%	+5.40%
Volatility (1Y) Calculated over the trailing 1-year period	17.73%	12.60%	+5.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.97%	14.35%	+1.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.33%	15.08%	+1.25%

RNWGX vs. VTTSX - Expense Ratio Comparison

RNWGX has a 0.57% expense ratio, which is higher than VTTSX's 0.08% expense ratio.

Dividends

RNWGX vs. VTTSX - Dividend Comparison

RNWGX's dividend yield for the trailing twelve months is around 5.44%, more than VTTSX's 1.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RNWGX American Funds New World Fund® Class R-6	5.44%	6.09%	4.11%	2.88%	1.33%	7.32%	0.44%	4.05%	2.71%	2.26%	1.37%	1.04%
VTTSX Vanguard Target Retirement 2060 Fund	1.87%	2.06%	2.20%	2.14%	2.09%	5.67%	1.83%	2.11%	2.33%	1.77%	1.98%	1.92%

Frequently Asked Questions

Can I hold both RNWGX and VTTSX in my portfolio?

RNWGX and VTTSX have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RNWGX or VTTSX?

RNWGX has higher volatility (7.07%) compared to VTTSX (3.75%). In terms of maximum drawdown, RNWGX dropped -33.40% vs VTTSX's -31.38%.

Which has better risk-adjusted returns?

VTTSX currently has the higher Sharpe Ratio (1.58 vs 1.39), 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.