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

Updated: September 18, 2020
80
Bull Case
  • 3-year return above the benchmark
  • 5-year return above the benchmark
  • 10-year return above the benchmark
  • No sales load or distribution fees
Bear Case
  • Low net assets

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

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

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

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

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

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe AMCAP Fund; Class R-5E Shares (RAEFX).

The Fund seeks to provide long-term growth of capital. The Fund invests primarily in common stocks of issuers located in the U.S. with a record of above-average long-term growth.

2. What are RAEFX top holdings?

RAEFX has 199 stock holdings and 0 bond holdings.

The top 10 holdings represent 26.53% of total assets. Here are the top holdings:

Name Symbol % Assets
Netflix Inc NFLX 4.25%
Microsoft Corp MSFT 3.73%
Abbott Laboratories ABT 3.28%
Facebook Inc A FB 2.88%
UnitedHealth Group Inc UNH 2.75%
Amazon.com Inc AMZN 2.38%
Broadcom Inc AVGO 2.05%
Gilead Sciences Inc GILD 1.78%
Thermo Fisher Scientific Inc TMO 1.77%
Amgen Inc AMGN 1.66%

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

RAEFX has generated the following returns:

  • 1-month return is 1.41%;
  • 3-month return is 8.12%;
  • 1-year return is 20.94%;
  • 3-year return is 14.05%;
  • 5-year return is 13.46%;
  • 10-year return is 14.22%.

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

In the last 10 years, RAEFX had 9 up years and 1 down year. See Performances

5. What is RAEFX dividend yield?

RAEFX yield is 0.72%.

6. What is RAEFX minimum initial investment amount?

RAEFX minimum initial investment amount is N/A.

7. What is RAEFX expense ratio?

RAEFX expense ratio is 0.5%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses. See Expenses

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

RAEFX 12b-1 distribution fee is 0. RAEFX front-end sales load is 0. RAEFX back-end sales load is 0.

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

  • 1-year ax cost ratio is 1.44%;
  • 3-year ax cost ratio is 1.64%.

See Taxes

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

  • 3-year beta is 0.96;
  • 5-year beta is 0.96;
  • 10-year beta is 0.97;
  • 15-year beta is 0.98.

See Risks

11. What is RAEFX Sharpe ratio?

  • 3-year Sharpe ratio is 0.68;
  • 5-year Sharpe ratio is 0.66;
  • 10-year Sharpe ratio is 1.00;
  • 15-year Sharpe ratio is 0.61.

See Risks

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 80. Our quantitative analysis shows 4 reasons to buy and 1 reason to sell it, resulting in the Finny Score of 80.

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

The following are RAEFX strengths from our perspective:

  • <strong>RAEFX 3-year return</strong> is 14.05%, which is higher than the 3-year return of the benchmark index (S&P 500 TR USD), 13.64%.
  • <strong>RAEFX 5-year return</strong> is 13.46%, which is in line with the 5-year return of the benchmark index (S&P 500 TR USD), 14.57%.
  • <strong>RAEFX 10-year return</strong> is 14.22%, which is in line with the 10-year return of the benchmark index (S&P 500 TR USD), 14.33%.
  • Good news: this fund does not have 12b1, front-end or back-end sales fees.

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

The following are RAEFX weaknesses from our perspective:

  • <strong>RAEFX net assets</strong> are $64.90 million. This fund is not a popular choice with retail investors.
In the RAEFX review, we covered RAEFX 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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