The Growth Fund of America®

DEFINED CONTRIBUTION FOCUS FUNDS
 

A large core growth strategy for
any market environment

 

Better results

The value of a hypothetical investment in the fund since the Russell 1000 Growth Index began would have been nearly double the S&P 500 — and the fund beat its peers 100% of the time (241 out of 241 rolling monthly 10-year periods) over the past 30 years ended December 31, 2022.*

A long-term legacy of success

Bar chart shows the value of hypothetical $10,000 investments since the Russell 1000 Growth Index began: The Growth Fund of America, $2,436,284; S&P 500 Index, $1,288,115; Russell 1000 Growth Index, $1,132,271; and Morningstar U.S. Fund Large Growth (reference footnote*), $892,699.
Value of hypothetical $10,000 investments since the Russell 1000 Growth Index began on December 31, 1978, through December 31, 2022.

Impressive risk/
return profile

The fund's flexible approach to growth, which includes cyclical companies and companies the investment team believes to be undervalued, has resulted in a historically strong ratio of returns to volatility (standard deviation).

Average rolling 10-year returns and 30-year standard deviation (1993-2022)

Graph shows average rolling monthly 10-year returns and 30-year standard deviation from 1993 through 2022 (reference footnote †). Average annual returns: The Growth Fund of America, 10.18%; S&P 500, 8.06%; Russell 1000 Growth Index, 7.92%; Morningstar U.S. Fund Large Growth (peers) (reference footnote *), 6.96%. Standard deviation: The Growth Fund of America, 16.33%; S&P 500, 14.99%; Russell 1000 Growth Index, 17.06%; Morningstar U.S. Fund Large Growth (peers) (reference footnote *), 16.76%.
Graph shows average rolling monthly 10-year returns and 30-year standard deviation from 1993 through 2022 (reference footnote †). Average annual returns: The Growth Fund of America, 10.18%; S&P 500, 8.06%; Russell 1000 Growth Index, 7.92%; Morningstar U.S. Fund Large Growth (peers) (reference footnote *), 6.96%. Standard deviation: The Growth Fund of America, 16.33%; S&P 500, 14.99%; Russell 1000 Growth Index, 17.06%; Morningstar U.S. Fund Large Growth (peers) (reference footnote *), 16.76%.
Source: Morningstar. Returns are the annualized average return of rolling monthly 10-year returns over the 30-year period ended December 31, 2022.

Low fees

The fund’s expense ratio was less than half of the median for its peer group.‡ 2

Expense ratio‡ 2

Bar chart compares expense ratios: The Growth Fund of America, 0.30%; Morningstar fee-level peer group median, 0.63%.
RECOGNITION
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Morningstar Analyst RatingTM of Bronze§

A “most used” defined

 contribution plan domestic equity fund**

Morningstar

“Thrilling 30” fund††

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* Fund peers are represented by the Morningstar U.S. Fund Large Growth category, which represents the averages of stocks in the top 70% of the capitalization of the U.S. equity market that are defined as large cap. Growth is based on fast growth (high growth rates for earnings, sales, book value and cash flow) and high valuations (high price ratios and low dividend yields). Most of these portfolios focus on companies in rapidly expanding industries. 

 

 Annualized standard deviation (based on monthly returns at net asset value) is a common measure of absolute volatility that represents how returns over time have varied from the mean. A lower number signifies lower volatility.

 

The fund’s Class R-6 expense ratio is as of the most recent prospectus available at the time of publication. The peer group expense ratio median was calculated based on funds in the following Morningstar Fee Level Group — Distribution category: Large Cap Retirement, Large, as of December 31, 2022.

 

§ As of March 1, 2023, based on Class R-6 shares.

 

** Source: “Mutual funds most used by DC plans, by asset class 2022,” Pensions & Investments, November 2, 2022, based on assets as of June 30, 2022, U.S. equity category.

 

†† Source: Morningstar, "The Thrilling 30" by Russel Kinnel, September 29, 2023. Morningstar's screening took into consideration expense ratios, manager ownership, returns over manager's tenure, and Morningstar Risk, Medalist and Parent ratings. The universe was limited to share classes accessible to individual investors with a minimum investment no greater than $50,000, did not include funds of funds, and must be rated by Morningstar analysts. Class A shares were evaluated for American Funds. Visit morningstar.com for more details.
 

Unless otherwise indicated, data is as of December 31, 2022, and fund data is for Class R-6 shares.

 

S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.


Russell 1000 Growth Index is a market capitalization-weighted index that represents the large-cap growth segment of the U.S. equity market and includes stocks from the Russell 1000 Index that have higher price-to-book ratios and higher expected growth values.


These indexes are unmanaged, and their results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Investing for short periods makes losses more likely. Prices and returns will vary, so investors may lose money. View mutual fund expense ratios and returns.

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.

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.

The Morningstar Medalist Rating™ is the summary expression of Morningstar's forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar's conviction in those products' investment merits and determines the Medalist Rating they're assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst's qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please go to global.morningstar.com/managerdisclosures/. The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell the investment product. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate.

Capital Group offers a range of share classes designed to meet the needs of retirement plan sponsors and participants. The different share classes incorporate varying levels of financial professional compensation and service provider payments. Because Class R-6 shares do not include any recordkeeping payments, expenses are lower and results are higher. Other share classes that include recordkeeping costs have higher expenses and lower results than Class R-6.

There may have been periods when the results lagged the index(es) and/or average(s). The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

FTSE/Russell indexes: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2024. FTSE Russell is a trading name of certain of the LSE Group companies. FTSE indexes are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company's express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

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Investment results assume all distributions are reinvested and reflect applicable fees and expenses.

When applicable, results reflect fee waivers and/or expense reimbursements, without which they would have been lower and net expenses higher. Please refer to capitalgroup.com for more information. Read details about how waivers and/or reimbursements affect the results for each fund. View results and yields without fee waiver and/or expense reimbursement.

Certain share classes were offered after the inception dates of some funds. Results for these shares prior to the dates of first sale are hypothetical based on the original share class results without a sales charge, adjusted for typical estimated expenses. 

  • Class R-6 shares were first offered on 5/1/2009.
Results for certain funds with an inception date after the share class inception also include hypothetical returns because those funds' shares sold after the funds' date of first offering. View dates of first sale and specific expense adjustment information.
  1. Calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by Capital Group.
  2. Expense ratios are as of each fund's prospectus available at the time of publication.

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© 2024 Morningstar, Inc. All Rights Reserved. Some of the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, its content providers nor Capital Group are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by Capital Group.