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

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

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

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

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

  1. Describe American Funds Target Date Retirement Series: American Funds 2055 Target Date Retirement Fund; Class A Share (AAMTX).
  2. What are AAMTX holdings?
  3. What is AAMTX performance? What are AAMTX historical returns?
  4. How many up and down years did AAMTX have historically?
  5. What is AAMTX dividend yield?
  6. What is AAMTX minimum initial investment amount?
  7. What is AAMTX expense ratio?
  8. Does AAMTX have any sales loads or 12b-1 distribution expenses?
  9. What is AAMTX tax efficiency (tax-cost ratio)?
  10. What is AAMTX beta? How would you assess AAMTX risk?
  11. What is AAMTX Sharpe ratio?
  12. What is AAMTX Finny Score? AAMTX buy or sell?
  13. What are the pros of investing in AAMTX? What are AAMTX buy reasons?
  14. What are the cons of investing in AAMTX? What are AAMTX 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 2055 Target Date Retirement Fund; Class A Share (AAMTX).

The Fund seeks growth, income and conservation of capital. The Fund will emphasize income and conservation of capital by investing a greater portion of assets in bond, equity-income and balanced funds as it approaches and passes its target date. In this way, the fund seeks to balance total return and stability over time.

2. What are AAMTX top holdings?

AAMTX has 0 stock holdings and 0 bond holdings.

The top 10 holdings represent 74.08% of total assets. Here are the top holdings:

Name Symbol % Assets
American Funds Invmt Co of Amer R6 RICGX 9.03%
American Funds Washington Mutual R6 RWMGX 8.99%
American Funds American Mutual R6 RMFGX 8.01%
American Funds Fundamental Invs R6 RFNGX 8.00%
American Funds AMCAP R6 RAFGX 7.03%
American Funds Growth Fund of Amer R6 RGAGX 7.02%
American Funds Capital World Gr&Inc R6 RWIGX 7.01%
American Funds New Perspective R6 RNPGX 7.00%
American Funds SMALLCAP World R6 RLLGX 6.99%
American Funds American Balanced R6 RLBGX 5.00%

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

AAMTX has generated the following returns:

  • 1-month return is 5.66%;
  • 3-month return is -10.46%;
  • 1-year return is 1.96%;
  • 3-year return is 6.52%;
  • 5-year return is 6.36%;
  • 10-year return is 9.31%.

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

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

5. What is AAMTX dividend yield?

AAMTX yield is 0.82%.

6. What is AAMTX minimum initial investment amount?

AAMTX minimum initial investment amount is $1.00K.

7. What is AAMTX expense ratio?

AAMTX expense ratio is 0.74%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

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

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

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

  • 1-year ax cost ratio is 1.03%;
  • 3-year ax cost ratio is 0.85%.

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

  • 3-year beta is 1.39;
  • 5-year beta is 1.39;
  • 10-year beta is 1.39.

11. What is AAMTX 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 AAMTX Finny Score? AAMTX buy or sell?

AAMTX Finny Score is 33. Our quantitative analysis shows 3 reasons to buy AAMTX and 6 reasons to sell it, resulting in the Finny Score of 33.

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

The following are AAMTX strengths from our perspective:

  • AAMTX 3-year return is 6.52%, which is higher than the 3-year return of the benchmark index (S&P Target Date Through 2055 TR), 3.95%.
  • AAMTX 5-year return is 6.36%, which is higher than the 5-year return of the benchmark index (S&P Target Date Through 2055 TR), 4.68%.
  • AAMTX 10-year return is 9.31%, which is higher than the 10-year return of the benchmark index (S&P Target Date Through 2055 TR), 8.81%.

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

The following are AAMTX weaknesses from our perspective:

  • AAMTX net assets are $639.40 million. This fund is not a popular choice with retail investors.
  • 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.
  • AAMTX expense ratio is 0.74%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • AAMTX 3-year Beta is 1.39, 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.
  • AAMTX 5-year Beta is 1.39, 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.
  • AAMTX 10-year Beta is 1.39, 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 AAMTX review, we covered AAMTX 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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