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

Updated: September 18, 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 RDCTX “stock” price, you can quickly find it out by visiting Finny and typing "RDCTX quote". If you’re looking for a quick scoop on RDCTX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "RDCTX". You’ll get all this info in one place.

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

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

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

  1. Describe American Funds Target Date Retirement Series: American Funds 2020 Target Date Retirement Fund; Class R-4 Shs (RDCTX).
  2. What are RDCTX holdings?
  3. What is RDCTX performance? What are RDCTX historical returns?
  4. How many up and down years did RDCTX have historically?
  5. What is RDCTX dividend yield?
  6. What is RDCTX minimum initial investment amount?
  7. What is RDCTX expense ratio?
  8. Does RDCTX have any sales loads or 12b-1 distribution expenses?
  9. What is RDCTX tax efficiency (tax-cost ratio)?
  10. What is RDCTX beta? How would you assess RDCTX risk?
  11. What is RDCTX Sharpe ratio?
  12. What is RDCTX Finny Score? RDCTX buy or sell?
  13. What are the pros of investing in RDCTX? What are RDCTX buy reasons?
  14. What are the cons of investing in RDCTX? What are RDCTX 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 2020 Target Date Retirement Fund; Class R-4 Shs (RDCTX).

The Fund seeks to provide for investors that plan to retire in 2020. 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 RDCTX top holdings?

RDCTX has 0 stock holdings and 0 bond holdings.

The top 10 holdings represent 69.24% of total assets. Here are the top holdings:

Name Symbol % Assets
American Funds Capital Income Bldr R6 RIRGX 9.18%
American Funds Income Fund of Amer R6 RIDGX 9.18%
American Funds Interm Bd Fd of Amer R6 RBOGX 8.98%
American Funds Bond Fund of Amer R6 RBFGX 7.98%
American Funds Inflation Linked Bd R6 RILFX 6.86%
American Funds American Mutual R6 RMFGX 6.02%
American Funds Mortgage R6 RMAGX 5.98%
American Funds American High-Inc R6 RITGX 5.03%
American Funds Invmt Co of Amer R6 RICGX 5.02%
American Funds Washington Mutual R6 RWMGX 5.01%

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

RDCTX has generated the following returns:

  • 1-month return is 0.90%;
  • 3-month return is 4.25%;
  • 1-year return is 9.14%;
  • 3-year return is 6.55%;
  • 5-year return is 7.52%;
  • 10-year return is 8.05%.

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

In the last 10 years, RDCTX had 8 up years and 2 down years. See Performances

5. What is RDCTX dividend yield?

RDCTX yield is 1.86%.

6. What is RDCTX minimum initial investment amount?

RDCTX minimum initial investment amount is N/A.

7. What is RDCTX expense ratio?

RDCTX expense ratio is 0.66%. 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 RDCTX have any sales loads or 12b-1 distribution expenses?

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

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

  • 1-year ax cost ratio is 1.03%;
  • 3-year ax cost ratio is 0.91%.

See Taxes

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

  • 3-year beta is 0.74;
  • 5-year beta is 0.77;
  • 10-year beta is 0.87.

See Risks

11. What is RDCTX Sharpe ratio?

  • 3-year Sharpe ratio is 0.54;
  • 5-year Sharpe ratio is 0.66;
  • 10-year Sharpe ratio is 1.00.

See Risks

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 RDCTX? What are RDCTX buy reasons?

The following are RDCTX strengths from our perspective:

  • <strong>RDCTX 3-year return</strong> is 6.55%, which is in line with the 3-year return of the benchmark index (S&P Target Date Through 2020 TR), 6.67%.
  • <strong>RDCTX 5-year return</strong> is 7.52%, which is in line with the 5-year return of the benchmark index (S&P Target Date Through 2020 TR), 7.91%.
  • <strong>RDCTX 10-year return</strong> is 8.05%, which is in line with the 10-year return of the benchmark index (S&P Target Date Through 2020 TR), 8.27%.

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

The following are RDCTX weaknesses from our perspective:

  • <strong>RDCTX expense ratio</strong> is 0.66%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • Warning: this fund has a 12b1 sales fee. The maximum 12b1 fee is 0.25%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund.
In the RDCTX review, we covered RDCTX 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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