Out of more than 8,000 funds, only 31 were deemed “Thrilling” by Morningstar —
And 7 of those are American Funds*
Funds were selected based on what Morningstar believes are "high standards on the most important factors," 8 tests assessing returns, expenses, risk, analyst ratings and more. Less than half of 1% made the final cut.
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More “Thrilling 31” underlying strategies than any other target date series
Eight of the “Thrilling 31” are also underlying strategies among the 4 largest target date series.
Seven of these 8 are in American Funds Target Date Retirement Series®*
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.
Passive funds are not managed to generate returns that exceed their benchmarks, so target date funds that have only passive underlying investments likely will not have funds on the Morningstar “Thrilling” list.
Source for largest target date series: Morningstar, as defined by mutual fund assets as of September 30, 2022.
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*Source: Morningstar, "The Thrilling 31 : A List of Great Funds" by Russel Kinnel, October 2022. Morningstar's screening took into consideration expense ratios, manager ownership, returns over manager's tenure, and Morningstar Risk, Analyst and Parent ratings. The universe was limited to share classes accessible to individual investors with a minimum investment no greater than $50,000 and did not include funds of funds. Class A shares were evaluated for American Funds. American Funds Target Date Retirement Series invests in Class R-6 shares of the underlying American Funds. Not all 'Thrilling" American Funds strategies are in each target date fund. Underlying funds may change over time. Visit morningstar.com 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.
Although the target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met. Investment professionals manage the portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the target date gets closer. The target date is the year that corresponds roughly to the year in which an investor is assumed to retire and begin taking withdrawals. Investment professionals continue to manage each portfolio for approximately 30 years after it reaches its target date.
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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.
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