14 important things you should know about American Funds AAATX mutual fund

Updated: June 27, 2020
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Before we start: if you’re looking for AAATX “stock” price, you can quickly find it out by visiting Finny and typing "AAATX quote". If you’re looking for a quick scoop on AAATX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "AAATX". You’ll get all this info in one place.

Are you looking to buy or sell AAATX? Or perhaps you’re looking for AAATX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this AAATX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: AAATX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: AAATX buy or sell; the pros and cons of investing in AAATX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to AAATX.

And here is the list of questions we’ll answer:

  1. Describe American Funds Target Date Retirement Series: American Funds 2010 Target Date Retirement Fund; Class A Shares (AAATX).
  2. What are AAATX holdings?
  3. What is AAATX performance? What are AAATX historical returns?
  4. How many up and down years did AAATX have historically?
  5. What is AAATX dividend yield?
  6. What is AAATX minimum initial investment amount?
  7. What is AAATX expense ratio?
  8. Does AAATX have any sales loads or 12b-1 distribution expenses?
  9. What is AAATX tax efficiency (tax-cost ratio)?
  10. What is AAATX beta? How would you assess AAATX risk?
  11. What is AAATX Sharpe ratio?
  12. What is AAATX Finny Score? AAATX buy or sell?
  13. What are the pros of investing in AAATX? What are AAATX buy reasons?
  14. What are the cons of investing in AAATX? What are AAATX sell reasons?

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe American Funds Target Date Retirement Series: American Funds 2010 Target Date Retirement Fund; Class A Shares (AAATX).

The Fund seeks to provide for investors that plan to retire in 2010. Depending on its proximity to its target date, the Fund will seek to achieve the following: growth, income and conservation of capital. Each Fund will attempt to achieve its investment objectives by investing in a mix of American Funds.

2. What are AAATX top holdings?

AAATX has 0 stock holdings and 0 bond holdings.

The top 10 holdings represent 79.09% of total assets. Here are the top holdings:

Name Symbol % Assets
American Funds Interm Bd Fd of Amer R6 RBOGX 14.15%
American Funds Capital Income Bldr R6 RIRGX 12.22%
American Funds Income Fund of Amer R6 RIDGX 12.20%
American Funds Bond Fund of Amer R6 RBFGX 8.07%
American Funds Inflation Linked Bd R6 RILFX 6.75%
American Funds Mortgage R6 RMAGX 6.02%
American Funds ST Bd Fd of Amer R6 RMMGX 5.23%
American Funds American Mutual R6 RMFGX 4.97%
American Funds American High-Inc R6 RITGX 4.78%
American Funds Capital World Bond R6 RCWGX 4.70%

3. What is AAATX performance? What are AAATX historical returns?

AAATX has generated the following returns:

  • 1-month return is 1.31%;
  • 3-month return is -4.76%;
  • 1-year return is 3.01%;
  • 3-year return is 4.07%;
  • 5-year return is 3.95%;
  • 10-year return is 6.14%.

4. How many up and down years did AAATX have historically?

In the last 10 years, AAATX had 8 up years and 2 down years.

5. What is AAATX dividend yield?

AAATX yield is 2.04%.

6. What is AAATX minimum initial investment amount?

AAATX minimum initial investment amount is $1.00K.

7. What is AAATX expense ratio?

AAATX expense ratio is 0.67%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

8. Does AAATX have any sales loads or 12b-1 distribution expenses?

AAATX 12b-1 distribution fee is 0.26. AAATX front-end sales load is 5.75. AAATX back-end sales load is 0.

9. What is AAATX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 1.14%;
  • 3-year ax cost ratio is 0.95%.

10. What is AAATX beta? How would you assess AAATX risk?

  • 3-year beta is 0.62;
  • 5-year beta is 0.66;
  • 10-year beta is 0.70.

11. What is AAATX Sharpe ratio?

  • 3-year Sharpe ratio is 0.20;
  • 5-year Sharpe ratio is 0.39;
  • 10-year Sharpe ratio is 0.84.

Analysis

12. What is AAATX Finny Score? AAATX buy or sell?

AAATX Finny Score is 67. Our quantitative analysis shows 6 reasons to buy AAATX and 3 reasons to sell it, resulting in the Finny Score of 67.

13. What are the pros of investing in AAATX? What are AAATX buy reasons?

The following are AAATX strengths from our perspective:

  • AAATX 3-year return is 4.07%, which is in line with the 3-year return of the benchmark index (S&P Target Date Through 2010 TR), 4.47%.
  • AAATX 5-year return is 3.95%, which is in line with the 5-year return of the benchmark index (S&P Target Date Through 2010 TR), 4.03%.
  • AAATX 10-year return is 6.14%, which is in line with the 10-year return of the benchmark index (S&P Target Date Through 2010 TR), 6.39%.
  • AAATX 3-year Beta is 0.62, which is inversely correlated with the index (Morningstar Mod Tgt Risk TR USD). The could be good if you're trying to hedge your portfolio.
  • AAATX 5-year Beta is 0.66, which is inversely correlated with the index (Morningstar Mod Tgt Risk TR USD). The could be good if you're trying to hedge your portfolio.
  • AAATX 10-year Beta is 0.7, which is inversely correlated with the index (Morningstar Mod Tgt Risk TR USD). The could be good if you're trying to hedge your portfolio.

14. What are the cons of investing in AAATX? What are AAATX negatives?

The following are AAATX weaknesses from our perspective:

  • AAATX net assets are $577.70 million. This fund is not a popular choice with retail investors.
  • Warning: this fund has a 12b1 and front-end sales fee. The maximum 12b1 fee is 0.26%, while the maximum front-end sales load is 5.75%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. Front-end sales load, also known as sales charge, is a fee paid when mutual funds shares are purchased. Those fees are subtracted from your total investable assets.
  • AAATX expense ratio is 0.67%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
In the AAATX review, we covered AAATX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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