TEPAX vs. FSDIX

Last updated Jun 3, 2026

TEPAX (American Funds Tax-Exempt Preservation Portfolio) and FSDIX (Fidelity Strategic Dividend & Income Fund) are both mutual funds - TEPAX is a Municipal Bonds fund managed by American Funds, while FSDIX is a Diversified Portfolio fund managed by Fidelity. Over the past 10 years, TEPAX returned 1.53%/yr vs 9.13%/yr for FSDIX. At a 0.05 correlation, their price movements are largely independent. TEPAX charges 0.34%/yr vs 0.68%/yr for FSDIX.

Performance

TEPAX vs. FSDIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Tax-Exempt Preservation Portfolio (TEPAX) and Fidelity Strategic Dividend & Income Fund (FSDIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TEPAX achieves a 0.71% return, which is significantly lower than FSDIX's 12.05% return. Over the past 10 years, TEPAX has underperformed FSDIX with an annualized return of 1.53%, while FSDIX has yielded a comparatively higher 9.13% annualized return.

TEPAX

• 1D: 0.00%
• 1M: 0.32%
• YTD: 0.71%
• 6M: 1.09%
• 1Y: 4.12%
• 3Y*: 3.38%
• 5Y*: 1.20%
• 10Y*: 1.53%

FSDIX

• 1D: -0.20%
• 1M: 1.50%
• YTD: 12.05%
• 6M: 6.72%
• 1Y: 16.14%
• 3Y*: 12.59%
• 5Y*: 7.07%
• 10Y*: 9.13%

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

TEPAX vs. FSDIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TEPAX American Funds Tax-Exempt Preservation Portfolio	0.71%	4.36%	2.14%	3.63%	-4.36%	-0.03%	3.52%	4.14%	0.90%	2.43%
FSDIX Fidelity Strategic Dividend & Income Fund	12.05%	6.52%	11.52%	9.45%	-9.84%	19.03%	11.23%	22.50%	-4.33%	11.23%

Correlation

The correlation between TEPAX and FSDIX is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.14
Correlation (3Y) Calculated over the trailing 3-year period	0.21
Correlation (5Y) Calculated over the trailing 5-year period	0.16
Correlation (10Y) Calculated over the trailing 10-year period	0.08
Correlation (All Time) Calculated using the full available price history since Jan 3, 2013	0.05

The correlation between TEPAX and FSDIX shifts across timeframes, from 0.05 (all time) to 0.21 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

TEPAX vs. FSDIX — Risk / Return Rank

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

TEPAX

TEPAX Risk / Return Rank: 68
TEPAX Sharpe Ratio Rank: 89
TEPAX Sortino Ratio Rank: 90
TEPAX Omega Ratio Rank: 96
TEPAX Calmar Ratio Rank: 35
TEPAX Martin Ratio Rank: 29

FSDIX

FSDIX Risk / Return Rank: 36
FSDIX Sharpe Ratio Rank: 31
FSDIX Sortino Ratio Rank: 21
FSDIX Omega Ratio Rank: 41
FSDIX Calmar Ratio Rank: 48
FSDIX Martin Ratio Rank: 40

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.

TEPAX vs. FSDIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Tax-Exempt Preservation Portfolio (TEPAX) and Fidelity Strategic Dividend & Income Fund (FSDIX). 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.

	TEPAX	FSDIX	Difference
Sharpe ratio Return per unit of total volatility	2.94	1.63	+1.31
Sortino ratio Return per unit of downside risk	4.34	1.99	+2.35
Omega ratio Gain probability vs. loss probability	1.82	1.34	+0.48
Calmar ratio Return relative to maximum drawdown	2.26	2.67	-0.41
Martin ratio Return relative to average drawdown	7.04	8.85	-1.82
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TEPAX vs. FSDIX - Sharpe Ratio Comparison

The current TEPAX Sharpe Ratio is 2.94, which is higher than the FSDIX Sharpe Ratio of 1.63. The chart below compares the historical Sharpe Ratios of TEPAX and FSDIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TEPAX	FSDIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.94	1.63	+1.31
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.62	0.63	-0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.74	0.73	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.85	0.53	+0.32

Drawdowns

TEPAX vs. FSDIX - Drawdown Comparison

The maximum TEPAX drawdown since its inception was -7.13%, smaller than the maximum FSDIX drawdown of -58.92%. Use the drawdown chart below to compare losses from any high point for TEPAX and FSDIX.

Drawdown Indicators

	TEPAX	FSDIX	Difference
Max Drawdown Largest peak-to-trough decline	-7.13%	-58.92%	+51.79%
Max Drawdown (1Y) Largest decline over 1 year	-1.82%	-6.38%	+4.56%
Max Drawdown (3Y) Largest decline over 3 years	-2.23%	-12.49%	+10.26%
Max Drawdown (5Y) Largest decline over 5 years	-7.12%	-17.08%	+9.96%
Max Drawdown (10Y) Largest decline over 10 years	-7.13%	-29.99%	+22.86%
Current Drawdown Current decline from peak	-0.90%	-0.66%	-0.24%
Average Drawdown Average peak-to-trough decline	-1.24%	-6.36%	+5.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.59%	1.92%	-1.33%

Volatility

TEPAX vs. FSDIX - Volatility Comparison

The current volatility for American Funds Tax-Exempt Preservation Portfolio (TEPAX) is 0.58%, while Fidelity Strategic Dividend & Income Fund (FSDIX) has a volatility of 2.25%. This indicates that TEPAX experiences smaller price fluctuations and is considered to be less risky than FSDIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TEPAX	FSDIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.58%	2.25%	-1.67%
Volatility (6M) Calculated over the trailing 6-month period	1.14%	8.80%	-7.66%
Volatility (1Y) Calculated over the trailing 1-year period	1.41%	10.20%	-8.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.95%	11.27%	-9.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.07%	12.58%	-10.51%

TEPAX vs. FSDIX - Expense Ratio Comparison

TEPAX has a 0.34% expense ratio, which is lower than FSDIX's 0.68% expense ratio.

Dividends

TEPAX vs. FSDIX - Dividend Comparison

TEPAX's dividend yield for the trailing twelve months is around 2.38%, more than FSDIX's 1.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FSDIX Fidelity Strategic Dividend & Income Fund	1.62%	1.80%	5.27%	5.71%	4.23%	8.43%	5.67%	6.68%	8.19%	6.57%	4.92%	6.38%
TEPAX American Funds Tax-Exempt Preservation Portfolio	2.38%	2.39%	2.44%	1.96%	1.11%	0.87%	1.44%	1.79%	1.72%	1.79%	2.22%	2.36%

Frequently Asked Questions

Can I hold both TEPAX and FSDIX in my portfolio?

TEPAX and FSDIX have a correlation of 0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TEPAX or FSDIX?

FSDIX has higher volatility (2.25%) compared to TEPAX (0.58%). In terms of maximum drawdown, TEPAX dropped -7.13% vs FSDIX's -58.92%.

Which has better risk-adjusted returns?

TEPAX currently has the higher Sharpe Ratio (2.94 vs 1.63), 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.