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

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

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

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

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

  1. Describe American Funds Target Date Retirement Series: American Funds 2040 Target Date Retirement Fund; Class A Shares (AAGTX).
  2. What are AAGTX holdings?
  3. What is AAGTX performance? What are AAGTX historical returns?
  4. How many up and down years did AAGTX have historically?
  5. What is AAGTX dividend yield?
  6. What is AAGTX minimum initial investment amount?
  7. What is AAGTX expense ratio?
  8. Does AAGTX have any sales loads or 12b-1 distribution expenses?
  9. What is AAGTX tax efficiency (tax-cost ratio)?
  10. What is AAGTX beta? How would you assess AAGTX risk?
  11. What is AAGTX Sharpe ratio?
  12. What is AAGTX Finny Score? AAGTX buy or sell?
  13. What are the pros of investing in AAGTX? What are AAGTX buy reasons?
  14. What are the cons of investing in AAGTX? What are AAGTX 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 2040 Target Date Retirement Fund; Class A Shares (AAGTX).

The Fund seeks to provide for investors that plan to retire in 2040. 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 AAGTX top holdings?

AAGTX has 0 stock holdings and 0 bond holdings.

The top 10 holdings represent 66.94% of total assets. Here are the top holdings:

Name Symbol % Assets
American Funds Washington Mutual R6 RWMGX 8.00%
American Funds Invmt Co of Amer R6 RICGX 7.04%
American Funds New Perspective R6 RNPGX 7.01%
American Funds AMCAP R6 RAFGX 6.99%
American Funds Growth Fund of Amer R6 RGAGX 6.99%
American Funds SMALLCAP World R6 RLLGX 6.89%
American Funds American Mutual R6 RMFGX 6.02%
American Funds Fundamental Invs R6 RFNGX 6.01%
American Funds Global Balanced R6 RGBGX 6.00%
American Funds American Balanced R6 RLBGX 5.99%

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

AAGTX has generated the following returns:

  • 1-month return is 5.36%;
  • 3-month return is -10.22%;
  • 1-year return is 1.91%;
  • 3-year return is 6.32%;
  • 5-year return is 6.17%;
  • 10-year return is 9.20%.

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

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

5. What is AAGTX dividend yield?

AAGTX yield is 1.01%.

6. What is AAGTX minimum initial investment amount?

AAGTX minimum initial investment amount is $1.00K.

7. What is AAGTX expense ratio?

AAGTX expense ratio is 0.73%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

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

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

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

  • 1-year ax cost ratio is 1.15%;
  • 3-year ax cost ratio is 0.95%.

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

  • 3-year beta is 1.34;
  • 5-year beta is 1.35;
  • 10-year beta is 1.37.

11. What is AAGTX Sharpe ratio?

  • 3-year Sharpe ratio is 0.19;
  • 5-year Sharpe ratio is 0.34;
  • 10-year Sharpe ratio is 0.65.

Analysis

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

AAGTX Finny Score is 38. Our quantitative analysis shows 3 reasons to buy AAGTX and 5 reasons to sell it, resulting in the Finny Score of 38.

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

The following are AAGTX strengths from our perspective:

  • AAGTX 3-year return is 6.32%, which is higher than the 3-year return of the benchmark index (S&P Target Date Through 2040 TR), 4.06%.
  • AAGTX 5-year return is 6.17%, which is higher than the 5-year return of the benchmark index (S&P Target Date Through 2040 TR), 4.68%.
  • AAGTX 10-year return is 9.2%, which is higher than the 10-year return of the benchmark index (S&P Target Date Through 2040 TR), 8.68%.

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

The following are AAGTX weaknesses from our perspective:

  • 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.
  • AAGTX expense ratio is 0.73%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • AAGTX 3-year Beta is 1.34, which is higher than the index (Morningstar Mod Tgt Risk TR USD) 3-year beta, 1.00. The fund is perceived to be riskier than the comparable index based on the previous 3 years.
  • AAGTX 5-year Beta is 1.35, which is higher than the index (Morningstar Mod Tgt Risk TR USD) 5-year beta, 1.00. The fund is perceived to be riskier than the comparable index based on the previous 5 years.
  • AAGTX 10-year Beta is 1.37, which is higher than the index (Morningstar Mod Tgt Risk TR USD) 10-year beta, 1.00. The fund is perceived to be riskier than the comparable index based on the previous 10 years.
In the AAGTX review, we covered AAGTX 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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