TRRDX vs. FFFFX
Compare and contrast key facts about T. Rowe Price Retirement 2040 Fund (TRRDX) and Fidelity Freedom 2040 Fund (FFFFX).
TRRDX is managed by T. Rowe Price. It was launched on Sep 29, 2002. FFFFX is managed by Fidelity. It was launched on Sep 6, 2000.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: TRRDX or FFFFX.
Key characteristics
| TRRDX | FFFFX | |
|---|---|---|
| YTD Return | 12.96% | 13.04% |
| 1Y Return | 19.92% | 21.43% |
| 3Y Return (Ann) | 3.74% | 4.22% |
| 5Y Return (Ann) | 9.90% | 10.64% |
| 10Y Return (Ann) | 8.80% | 8.94% |
| Sharpe Ratio | 1.92 | 1.92 |
| Daily Std Dev | 10.90% | 11.24% |
| Max Drawdown | -53.50% | -53.24% |
| Current Drawdown | -0.73% | -0.84% |
Correlation
The correlation between TRRDX and FFFFX is 0.97, 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.
Performance
TRRDX vs. FFFFX - Performance Comparison
The year-to-date returns for both investments are quite close, with TRRDX having a 12.96% return and FFFFX slightly higher at 13.04%. Both investments have delivered pretty close results over the past 10 years, with TRRDX having a 8.80% annualized return and FFFFX not far ahead at 8.94%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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TRRDX vs. FFFFX - Expense Ratio Comparison
TRRDX has a 0.61% expense ratio, which is lower than FFFFX's 0.75% expense ratio.
Risk-Adjusted Performance
TRRDX vs. FFFFX - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Retirement 2040 Fund (TRRDX) and Fidelity Freedom 2040 Fund (FFFFX). 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.
Dividends
TRRDX vs. FFFFX - Dividend Comparison
TRRDX's dividend yield for the trailing twelve months is around 4.95%, more than FFFFX's 1.62% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TRRDX T. Rowe Price Retirement 2040 Fund | 4.95% | 5.60% | 8.92% | 7.92% | 4.96% | 6.10% | 9.51% | 3.96% | 4.74% | 6.02% | 5.27% | 2.65% |
FFFFX Fidelity Freedom 2040 Fund | 1.62% | 1.72% | 12.33% | 12.09% | 5.67% | 6.69% | 7.97% | 4.37% | 4.11% | 6.38% | 9.27% | 6.23% |
Drawdowns
TRRDX vs. FFFFX - Drawdown Comparison
The maximum TRRDX drawdown since its inception was -53.50%, roughly equal to the maximum FFFFX drawdown of -53.24%. Use the drawdown chart below to compare losses from any high point for TRRDX and FFFFX. For additional features, visit the drawdowns tool.
Volatility
TRRDX vs. FFFFX - Volatility Comparison
T. Rowe Price Retirement 2040 Fund (TRRDX) and Fidelity Freedom 2040 Fund (FFFFX) have volatilities of 3.69% and 3.76%, 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.