FAVOX Mutual Fund — Fidelity Freedom Index 2040 Fund - Premier II Class

Fidelity Freedom Index 2040 Fund - Premier II Class (FAVOX)

Updated October 15, 2026.

FAVOX is a low-cost Mutual Fund. its distribution rate is 2.30%, its trailing-12-month yield is 2.30%, its expense ratio is 0.04%. Dividend Vision Distribution Safety Score™ is 50/100 (Unproven). Total return is 34.0% over the past 2.1 years, 8.4 points behind SPY at 42.4%.

Fidelity Freedom Index 2040 Fund - Premier II Class is a mutual fund that invests in a diversified portfolio of underlying Fidelity index funds tracking U.S. equities, international equities, bonds, and short-term securities, with an asset allocation designed for investors targeting retirement around 2040. The fund has a modest current distribution rate and carries a very low expense ratio of 0.04%. It appeals to long-term retirement savers who prefer a hands-off, diversified approach with automatic rebalancing as the target date approaches.

FAVOX performance versus SPY

Price and return data through 2026-10-15.

Total return is 34.0% over the past 2.1 years, 8.4 points behind SPY at 42.4%. Over the past year its total return — price change plus distributions reinvested — is 12.8%. Its deepest 1-year drawdown was 8.1%.

FAVOX key facts

Distribution Safety Score™

50 · Unproven

Issuer

Fidelity Investments

Asset type

Mutual Fund

Asset class

Equity

Expense ratio

0.04%

Distribution rate

2.30%

Distribution frequency

Semi-Annual

Trailing yield

2.30%

Last close

$31.64 (as of 2026-10-15)

NAV

$32.96 as of 2026-09-30; source eodhd (stale)

Premium / discount

N/A (price 2026-10-15, NAV 2026-09-30) (NAV stale)

AUM

$24,158,873,600

Average volume

0.0

Dividend

$0.114

Ex-dividend date

05/08/2026

Beta

1.13

How Dividend Vision calculates yield and returns

Distribution rate (2.30%) uses calculation basis unavailable. Issuer rates can use a different denominator and date, including ex-date NAV. Trailing-12-month yield (2.30%) is the sum of split-adjusted cash distributions with ex-dates in the last 12 months, divided by the published price. It lags a recent raise or cut. Total return uses split-adjusted close with distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date) from the first stored bar on or after inception through the latest bar, compared with the same window on the benchmark. That is the security's total return, not your personal gain/loss.

Yield and safety methodology · Distribution rate methodology · Distribution Safety Score methodology

Sources and review

Primary sources: Fidelity Investments; prices and distributions from Dividend Vision, derived from vendor EOD data.

Reviewed by Bert Sweet, CEO and Co-owner of Dividend Vision. Methodology: Distribution Safety Score.

FAVOX risks and drawbacks

FAVOX's current distribution rate is moderate, not a high-yield payout — the strategy is dividend quality more than maximum income. Payments are semi-annual, so cash flow is lumpy versus a monthly fund. Total return has trailed SPY over the available window. The deepest 1-year drawdown on record here is 8.1%.

Who may consider FAVOX — and who may not

FAVOX may suit someone looking for low-cost broad dividend exposure, moderate current income with a quality tilt. It is a weaker fit for investors who need monthly cash flow (FAVOX pays semi-annual); investors hunting double-digit covered-call yields; investors whose main goal is matching SPY total return. This is educational context, not a recommendation to buy or sell.

More on FAVOX

• All tickers starting with F

Tagged: Mutual Fund.

Frequently asked questions

More securities from Fidelity Investments.