Fidelity Freedom 2060 Fund Returned 23% in 2025, Topped 98% of Peers

Fidelity Freedom 2060 Fund (FDKVX) returned 23.10% over the past year, landing in the top 2% of its Morningstar category. The fund's active bets on commodities and a handful of tech stocks outside its benchmark drove the outperformance.

First quarter 2026 was a mixed bag for Fidelity's target-date lineup. Both equities and fixed income took hits as volatility spiked. Geopolitical conflict, persistent inflation fears, and shifting policy signals kept markets choppy. Large-cap growth stocks, which had led for three straight years, reversed course.

The fund's overweight in commodities was the single biggest contributor to relative returns in Q1, Fidelity said. Within equities, security selection in information technology added meaningful value. Two out-of-benchmark positions – Sandisk and Ciena – were the standouts.

Ciena (CIEN) carries an Alpha Score of 51 out of 100 at AlphaScala, a Mixed label. The stock sits in the technology sector. The fund's bet on Ciena paid off as the networking equipment maker benefited from demand tied to AI infrastructure buildouts.

Fidelity also shifted its asset-allocation stance during the quarter. The firm increased equity exposure for early-career investors and added inflation-sensitive assets for those closer to retirement. The transition is expected to take six to 12 months to complete.

The fund's 23.10% cumulative return covers the 12 months through the end of Q1 2026. The Morningstar category includes roughly 200 target-date 2060 funds. Fidelity Freedom 2060 Fund's rank in the top 2% means it beat all but three or four peers over that stretch.