7-day free trial: Get unlimited comparisons, and stock, ETF and mutual fund analyses for just $14.95 a month, without ads. Start a free trial. Go ad free!

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

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

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

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

  1. Describe American Funds Target Date Retirement Series: American Funds 2050 Target Date Retirement Fund; Class A Shares (AALTX).
  2. What are AALTX holdings?
  3. What is AALTX performance? What are AALTX historical returns?
  4. How many up and down years did AALTX have historically?
  5. What is AALTX dividend yield?
  6. What is AALTX minimum initial investment amount?
  7. What is AALTX expense ratio?
  8. Does AALTX have any sales loads or 12b-1 distribution expenses?
  9. What is AALTX tax efficiency (tax-cost ratio)?
  10. What is AALTX beta? How would you assess AALTX risk?
  11. What is AALTX Sharpe ratio?
  12. What is AALTX Finny Score? AALTX buy or sell?
  13. What are the pros of investing in AALTX? What are AALTX buy reasons?
  14. What are the cons of investing in AALTX? What are AALTX 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 2050 Target Date Retirement Fund; Class A Shares (AALTX).

The Fund seeks to provide for investors that plan to retire in 2050. 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 AALTX top holdings?

AALTX has 0 stock holdings and 0 bond holdings.

The top 10 holdings represent 73.89% of total assets. Here are the top holdings:

Name Symbol % Assets
American Funds Invmt Co of Amer R6 RICGX 8.99%
American Funds Washington Mutual R6 RWMGX 8.94%
American Funds American Mutual R6 RMFGX 7.96%
American Funds Fundamental Invs R6 RFNGX 7.95%
American Funds AMCAP R6 RAFGX 7.03%
American Funds Growth Fund of Amer R6 RGAGX 7.03%
American Funds New Perspective R6 RNPGX 7.01%
American Funds SMALLCAP World R6 RLLGX 6.98%
American Funds Capital World Gr&Inc R6 RWIGX 6.96%
American Funds American Balanced R6 RLBGX 5.04%

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

AALTX has generated the following returns:

  • 1-month return is -1.64%;
  • 3-month return is 5.47%;
  • 1-year return is 11.28%;
  • 3-year return is 8.56%;
  • 5-year return is 10.38%;
  • 10-year return is 10.27%.

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

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

AALTX up and down years

5. What is AALTX dividend yield?

AALTX yield is 0.86%.

6. What is AALTX minimum initial investment amount?

AALTX minimum initial investment amount is $1.00K.

7. What is AALTX expense ratio?

AALTX 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.

AALTX expenses

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

AALTX 12b-1 distribution fee is 0.25. AALTX front-end sales load is 5.75. AALTX back-end sales load is 0.

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

  • 1-year ax cost ratio is 0.96%;
  • 3-year ax cost ratio is 0.86%.
AALTX tax costs

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

  • 3-year beta is 1.39;
  • 5-year beta is 1.40;
  • 10-year beta is 1.39.
AALTX Beta

11. What is AALTX Sharpe ratio?

  • 3-year Sharpe ratio is 0.51;
  • 5-year Sharpe ratio is 0.59;
  • 10-year Sharpe ratio is 0.88.
AALTX 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 AALTX? What are AALTX buy reasons?

The following are AALTX strengths from our perspective:

  • <strong>AALTX 3-year return</strong> is 8.56%, which is higher than the 3-year return of the benchmark index (S&P Target Date Through 2050 TR), 6.9%.
  • <strong>AALTX 5-year return</strong> is 10.38%, which is higher than the 5-year return of the benchmark index (S&P Target Date Through 2050 TR), 9.34%.
  • <strong>AALTX 10-year return</strong> is 10.27%, which is higher than the 10-year return of the benchmark index (S&P Target Date Through 2050 TR), 9.8%.

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

The following are AALTX weaknesses from our perspective:

  • <strong>AALTX expense ratio</strong> is 0.73%, 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 0.25%, 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 AALTX review, we covered AALTX 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.
Follow Us