A target date series is only as good as its underlying funds. The charts below illustrate just how "Terrific" the underlying funds of American Funds Target Date Retirement Series® have been.
In evaluating target date funds, investors should consider how the various features of each fund, including the underlying funds, investment results, expenses and glide path construction, apply to their personal situation.
Source: "2018 Target-Date Fund Landscape," Morningstar, Inc., as defined by assets under management as of December 31, 2017.
Morningstar evaluated more than 8,000 funds based on manager ownership, fund results and expense ratios, as well as Morningstar risk, analyst and parent ratings. Less than half of 1% made the "Terrific" list.
Six of the underlying equity-focused strategies in our Series made "The Terrific 28" list -- the most of any target date series in the industry.
As of September 30, 2019
*Not all six of the strategies are in each target date fund. Underlying funds may change over time.
*Source: Morningstar, September 4, 2018, “Fund Spy: 28 Terrific Funds,” by Russel Kinnel. Morningstar's criteria for the “Terrific” list include: cheapest quintile of broad level category groupings, manager investment of more than $1 million in the fund, Morningstar Risk rating below the High level, Morningstar Analyst Rating of Bronze or higher, Parent rating of Positive, returns above the fund's benchmark over the manager's tenure. The criteria have changed over the years. Visit americanfunds.com/advisor/news/morningstar-terrific.html for more details.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
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.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.