VTMFX vs. AAETX
VTMFX (Vanguard Tax-Managed Balanced Fund Admiral Shares) and AAETX (American Funds 2030 Target Date Retirement Fund Class A) are both mutual funds - VTMFX is a Diversified Portfolio fund tracking the Composite benchmark: Russell 1000 Index and Bloomberg 1-15 Year Municipal Bond Index, while AAETX is a Target Retirement Date fund actively managed by American Funds. VTMFX is passively managed, while AAETX is actively managed. Over the past 10 years, VTMFX returned 8.34%/yr vs 8.70%/yr for AAETX. Their correlation of 0.94 means they have usually moved in the same direction. VTMFX charges 0.05%/yr vs 0.66%/yr for AAETX.
Performance
VTMFX vs. AAETX - Performance Comparison
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Returns By Period
In the year-to-date period, VTMFX achieves a 4.67% return, which is significantly lower than AAETX's 5.20% return. Both investments have delivered pretty close results over the past 10 years, with VTMFX having a 8.34% annualized return and AAETX not far ahead at 8.70%.
VTMFX
- 1D
- 0.26%
- 1M
- -0.90%
- 6M
- 3.20%
- YTD
- 4.67%
- 1Y
- 12.08%
- 3Y*
- 10.85%
- 5Y*
- 6.45%
- 10Y*
- 8.34%
- ALL TIME*
- 7.76%
AAETX
- 1D
- 0.77%
- 1M
- -0.61%
- 6M
- 3.15%
- YTD
- 5.20%
- 1Y
- 11.90%
- 3Y*
- 11.76%
- 5Y*
- 6.24%
- 10Y*
- 8.70%
- ALL TIME*
- 7.19%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $0.00 | $0.00 | $0.00 | |
| $0.00 | $0.00 | $0.00 |
VTMFX vs. AAETX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares | 4.67% | 11.28% | 12.17% | 15.55% | -12.69% | 13.10% | 13.31% | 18.01% | -1.40% | 12.61% |
AAETX American Funds 2030 Target Date Retirement Fund Class A | 5.20% | 15.41% | 10.50% | 14.08% | -14.74% | 12.79% | 14.81% | 19.64% | -4.56% | 18.11% |
Correlation
The correlation between VTMFX and AAETX is 0.94, 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. | 0.94 |
Correlation (3Y) Balances recent behavior with more history. | 0.93 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.95 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.94 |
Correlation (All Time) Calculated using the full available price history since Feb 2, 2007 | 0.94 |
The correlation between VTMFX and AAETX has been stable across timeframes, ranging from 0.93 to 0.95 - a consistent structural relationship.
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Return for Risk
VTMFX vs. AAETX — Risk / Return Rank
VTMFX
AAETX
VTMFX vs. AAETX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) and American Funds 2030 Target Date Retirement Fund Class A (AAETX). 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.
| VTMFX | AAETX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.25 | ||
| Sortino ratioReturn per unit of downside risk | +0.29 | ||
| Omega ratioGain probability vs. loss probability | 1.31 | 1.27 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.12 | 1.84 | +0.29 |
| Martin ratioReturn relative to average drawdown | 9.47 | 7.94 | +1.54 |
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Drawdowns
VTMFX vs. AAETX - Drawdown Comparison
The maximum VTMFX drawdown since its inception was -28.49%, smaller than the maximum AAETX drawdown of -49.49%. Use the drawdown chart below to compare losses from any high point for VTMFX and AAETX.
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Drawdown Indicators
| VTMFX | AAETX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -28.49% | -49.49% | +21.00% |
Max Drawdown (1Y)Largest decline over 1 year | -5.38% | -6.12% | +0.74% |
Max Drawdown (3Y)Largest decline over 3 years | -10.61% | -8.67% | -1.94% |
Max Drawdown (5Y)Largest decline over 5 years | -17.40% | -21.01% | +3.61% |
Max Drawdown (10Y)Largest decline over 10 years | -21.87% | -22.37% | +0.50% |
Current DrawdownCurrent decline from peak | -1.29% | -0.96% | -0.33% |
Average DrawdownAverage peak-to-trough decline | -3.54% | -6.36% | +2.82% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.20% | 1.41% | -0.21% |
Volatility
VTMFX vs. AAETX - Volatility Comparison
Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) and American Funds 2030 Target Date Retirement Fund Class A (AAETX) have volatilities of 1.87% and 1.81%, 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.
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Volatility by Period
| VTMFX | AAETX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.87% | 1.81% | +0.06% |
Volatility (6M)Calculated over the trailing 6-month period | 5.35% | 6.21% | -0.86% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.67% | 7.67% | -1.00% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.59% | 9.78% | -1.19% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.14% | 10.58% | -1.44% |
VTMFX vs. AAETX - Expense Ratio Comparison
VTMFX has a 0.05% expense ratio, which is lower than AAETX's 0.66% expense ratio.
Dividends
VTMFX vs. AAETX - Dividend Comparison
VTMFX's dividend yield for the trailing twelve months is around 2.22%, less than AAETX's 6.02% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAETX American Funds 2030 Target Date Retirement Fund Class A | 6.02% | 6.33% | 3.73% | 2.69% | 4.39% | 6.47% | 3.57% | 3.95% | 4.46% | 2.46% | 3.46% | 5.52% |
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares | 2.22% | 2.14% | 2.08% | 1.94% | 1.85% | 1.38% | 1.72% | 2.05% | 2.22% | 2.00% | 2.13% | 2.06% |
Frequently Asked Questions
With a correlation of 0.94, VTMFX and AAETX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
VTMFX has higher volatility (1.87%) compared to AAETX (1.81%). In terms of maximum drawdown, VTMFX dropped -28.49% vs AAETX's -49.49%.
VTMFX currently has the higher Sharpe Ratio (1.71 vs 1.47), 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.
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