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15 important things you should know about American Funds AACTX mutual fund

Updated: September 27, 2020
60
Bull Case
  • 3-year return above the benchmark
  • 5-year return above the benchmark
  • 10-year return above the benchmark
Bear Case
  • High expense ratio
  • Sales load and/or distribution fees

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

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

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

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

  1. Describe American Funds Target Date Retirement Series: American Funds 2020 Target Date Retirement Fund; Class A Shares (AACTX).
  2. What are AACTX holdings?
  3. What is AACTX performance? What are AACTX historical returns?
  4. How many up and down years did AACTX have historically?
  5. What is AACTX dividend yield?
  6. What is AACTX minimum initial investment amount?
  7. What is AACTX expense ratio?
  8. Does AACTX have any sales loads or 12b-1 distribution expenses?
  9. What is AACTX tax efficiency (tax-cost ratio)?
  10. What is AACTX beta? How would you assess AACTX risk?
  11. What is AACTX Sharpe ratio?
  12. What is AACTX Finny Score? AACTX buy or sell?
  13. What are the pros of investing in AACTX? What are AACTX buy reasons?
  14. What are the cons of investing in AACTX? What are AACTX 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 2020 Target Date Retirement Fund; Class A Shares (AACTX).

The Fund seeks to provide for investors that plan to retire in 2020. 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 AACTX top holdings?

AACTX has 0 stock holdings and 0 bond holdings.

The top 10 holdings represent 69.24% of total assets. Here are the top holdings:

Name Symbol % Assets
American Funds Capital Income Bldr R6 RIRGX 9.18%
American Funds Income Fund of Amer R6 RIDGX 9.18%
American Funds Interm Bd Fd of Amer R6 RBOGX 8.98%
American Funds Bond Fund of Amer R6 RBFGX 7.98%
American Funds Inflation Linked Bd R6 RILFX 6.86%
American Funds American Mutual R6 RMFGX 6.02%
American Funds Mortgage R6 RMAGX 5.98%
American Funds American High-Inc R6 RITGX 5.03%
American Funds Invmt Co of Amer R6 RICGX 5.02%
American Funds Washington Mutual R6 RWMGX 5.01%

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

AACTX has generated the following returns:

  • 1-month return is -0.97%;
  • 3-month return is 2.93%;
  • 1-year return is 7.18%;
  • 3-year return is 5.79%;
  • 5-year return is 6.99%;
  • 10-year return is 7.62%.

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

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

AACTX up and down years

5. What is AACTX dividend yield?

AACTX yield is 1.87%.

6. What is AACTX minimum initial investment amount?

AACTX minimum initial investment amount is $1.00K.

7. What is AACTX expense ratio?

AACTX expense ratio is 0.66%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

AACTX expenses

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

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

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

  • 1-year ax cost ratio is 1.03%;
  • 3-year ax cost ratio is 0.91%.
AACTX tax costs

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

  • 3-year beta is 0.74;
  • 5-year beta is 0.78;
  • 10-year beta is 0.87.
AACTX Beta

11. What is AACTX Sharpe ratio?

  • 3-year Sharpe ratio is 0.54;
  • 5-year Sharpe ratio is 0.66;
  • 10-year Sharpe ratio is 1.00.
AACTX Sharpe ratio

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 60. Our quantitative analysis shows 3 reasons to buy and 2 reasons to sell it, resulting in the Finny Score of 60.

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

The following are AACTX strengths from our perspective:

  • <strong>AACTX 3-year return</strong> is 5.79%, which is in line with the 3-year return of the benchmark index (S&P Target Date Through 2020 TR), 6.23%.
  • <strong>AACTX 5-year return</strong> is 6.99%, which is in line with the 5-year return of the benchmark index (S&P Target Date Through 2020 TR), 7.52%.
  • <strong>AACTX 10-year return</strong> is 7.62%, which is in line with the 10-year return of the benchmark index (S&P Target Date Through 2020 TR), 8.07%.

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

The following are AACTX weaknesses from our perspective:

  • <strong>AACTX expense ratio</strong> is 0.66%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • 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.
In the AACTX review, we covered AACTX 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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