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

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

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

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

  1. Describe American Funds Target Date Retirement Series: American Funds 2030 Target Date Retirement Fund; Class A Shares (AAETX).
  2. What are AAETX holdings?
  3. What is AAETX performance? What are AAETX historical returns?
  4. How many up and down years did AAETX have historically?
  5. What is AAETX dividend yield?
  6. What is AAETX minimum initial investment amount?
  7. What is AAETX expense ratio?
  8. Does AAETX have any sales loads or 12b-1 distribution expenses?
  9. What is AAETX tax efficiency (tax-cost ratio)?
  10. What is AAETX beta? How would you assess AAETX risk?
  11. What is AAETX Sharpe ratio?
  12. What is AAETX Finny Score? AAETX buy or sell?
  13. What are the pros of investing in AAETX? What are AAETX buy reasons?
  14. What are the cons of investing in AAETX? What are AAETX 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 2030 Target Date Retirement Fund; Class A Shares (AAETX).

The Fund seeks to provide for investors that plan to retire in 2030. 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 AAETX top holdings?

AAETX has 0 stock holdings and 0 bond holdings.

The top 10 holdings represent 60.89% of total assets. Here are the top holdings:

Name Symbol % Assets
American Funds Washington Mutual R6 RWMGX 7.92%
American Funds Invmt Co of Amer R6 RICGX 7.01%
American Funds US Government Sec R6 RGVGX 6.89%
American Funds American Mutual R6 RMFGX 6.04%
American Funds Global Balanced R6 RGBGX 6.02%
American Funds American Balanced R6 RLBGX 6.01%
American Funds Fundamental Invs R6 RFNGX 5.98%
American Funds Capital World Gr&Inc R6 RWIGX 5.03%
American Funds New Perspective R6 RNPGX 5.03%
American Funds Mortgage R6 RMAGX 4.96%

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

AAETX has generated the following returns:

  • 1-month return is -1.32%;
  • 3-month return is 4.25%;
  • 1-year return is 9.53%;
  • 3-year return is 7.31%;
  • 5-year return is 8.89%;
  • 10-year return is 9.45%.

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

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

AAETX up and down years

5. What is AAETX dividend yield?

AAETX yield is 1.33%.

6. What is AAETX minimum initial investment amount?

AAETX minimum initial investment amount is $1.00K.

7. What is AAETX expense ratio?

AAETX expense ratio is 0.71%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

AAETX expenses

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

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

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

  • 1-year ax cost ratio is 0.94%;
  • 3-year ax cost ratio is 0.86%.
AAETX tax costs

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

  • 3-year beta is 1.04;
  • 5-year beta is 1.09;
  • 10-year beta is 1.19.
AAETX Beta

11. What is AAETX Sharpe ratio?

  • 3-year Sharpe ratio is 0.54;
  • 5-year Sharpe ratio is 0.62;
  • 10-year Sharpe ratio is 0.94.
AAETX 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 AAETX? What are AAETX buy reasons?

The following are AAETX strengths from our perspective:

  • <strong>AAETX 3-year return</strong> is 7.31%, which is higher than the 3-year return of the benchmark index (S&P Target Date Through 2030 TR), 6.51%.
  • <strong>AAETX 5-year return</strong> is 8.89%, which is higher than the 5-year return of the benchmark index (S&P Target Date Through 2030 TR), 8.43%.
  • <strong>AAETX 10-year return</strong> is 9.45%, which is higher than the 10-year return of the benchmark index (S&P Target Date Through 2030 TR), 9.05%.

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

The following are AAETX weaknesses from our perspective:

  • <strong>AAETX expense ratio</strong> is 0.71%, 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 AAETX review, we covered AAETX 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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