The average manager can’t beat the index. We’re not average. Capital Group’s equity-focused American Funds have generated lifetime index-beating results through up and down markets.
Between the founding of the first index-tracking fund in 1976 and now, an investor could have done well if they had placed $10,000 in such a fund. But, if they had made that same investment in any of the five U.S. equity American Funds available at the time instead, they would have experienced far greater results.
Here’s how a hypothetical investment fared during a time period that included the dot-com bubble and the Great Recession.
With index funds you get every point of a market decline. Losing less than the market during downturns, on average, has delivered a smoother ride and better results for investors in our U.S.-equity-focused American Funds during most declines.
A RANGE OF BENEFITS BEYOND THEIR RETURNS
We believe fixed income offerings should provide more than just return. They should provide diversification from equities, capital preservation, income and a measure of inflation protection. Below we've identified the funds that we believe best serve these roles. To see results of our other funds, please visit capitalgroup.com.
From individual mutual funds to fully diversified target date offerings, we have extensive experience designing portfolios and investing in different asset classes.
American Funds Target Date Retirement Series® demonstrates our success at combining funds with varying objectives and asset classes. Its high-quality ingredients and thoughtful design has generated superior returns for virtually all the standardized measurement periods within each fund’s lifetime.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks.
There may have been periods when the results lagged the index(es). Certain market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
American Funds Distributors, Inc., member FINRA.