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

Updated: September 27, 2020

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

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

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

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

Describe American Funds Target Date Retirement Series: American Funds 2025 Target Date Retirement Fund; Class A Shares (AADTX).
What are AADTX holdings?
What is AADTX performance? What are AADTX historical returns?
How many up and down years did AADTX have historically?
What is AADTX dividend yield?
What is AADTX minimum initial investment amount?
What is AADTX expense ratio?
Does AADTX have any sales loads or 12b-1 distribution expenses?
What is AADTX tax efficiency (tax-cost ratio)?
What is AADTX beta? How would you assess AADTX risk?
What is AADTX Sharpe ratio?
What is AADTX Finny Score? AADTX buy or sell?
What are the pros of investing in AADTX? What are AADTX buy reasons?
What are the cons of investing in AADTX? What are AADTX 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 2025 Target Date Retirement Fund; Class A Shares (AADTX).

The Fund seeks to provide for investors that plan to retire in 2025. 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 AADTX top holdings?

AADTX has 0 stock holdings and 0 bond holdings.

The top 10 holdings represent 59.81% of total assets. Here are the top holdings:

Name	Symbol	% Assets
American Funds Interm Bd Fd of Amer R6	RBOGX	8.96%
American Funds American Mutual R6	RMFGX	6.04%
American Funds Invmt Co of Amer R6	RICGX	6.00%
American Funds Washington Mutual R6	RWMGX	5.97%
American Funds American Balanced R6	RLBGX	5.91%
American Funds US Government Sec R6	RGVGX	5.90%
American Funds Global Balanced R6	RGBGX	5.88%
American Funds Bond Fund of Amer R6	RBFGX	5.13%
American Funds Mortgage R6	RMAGX	5.02%
American Funds Inflation Linked Bd R6	RILFX	5.00%

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

AADTX has generated the following returns:

1-month return is -1.08%;
3-month return is 3.61%;
1-year return is 9.21%;
3-year return is 6.79%;
5-year return is 8.01%;
10-year return is 8.75%.

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

In the last 10 years, AADTX had 7 up years and 3 down years.

5. What is AADTX dividend yield?

AADTX yield is 1.48%.

6. What is AADTX minimum initial investment amount?

AADTX minimum initial investment amount is $1.00K.

7. What is AADTX expense ratio?

AADTX expense ratio is 0.69%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

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

AADTX 12b-1 distribution fee is 0.27. AADTX front-end sales load is 5.75. AADTX back-end sales load is 0.

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

1-year ax cost ratio is 0.91%;
3-year ax cost ratio is 0.82%.

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

3-year beta is 0.88;
5-year beta is 0.91;
10-year beta is 1.04.

11. What is AADTX Sharpe ratio?

3-year Sharpe ratio is 0.57;
5-year Sharpe ratio is 0.67;
10-year Sharpe ratio is 0.97.

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 AADTX? What are AADTX buy reasons?

The following are AADTX strengths from our perspective:

AADTX 3-year return is 6.79%, which is higher than the 3-year return of the benchmark index (S&P Target Date Through 2025 TR), 6.34%.
AADTX 5-year return is 8.01%, which is higher than the 5-year return of the benchmark index (S&P Target Date Through 2025 TR), 7.97%.
AADTX 10-year return is 8.75%, which is higher than the 10-year return of the benchmark index (S&P Target Date Through 2025 TR), 8.61%.

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

The following are AADTX weaknesses from our perspective:

AADTX expense ratio is 0.69%, 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 0.27%, 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 AADTX review, we covered AADTX 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.