Compare the results of a hypothetical $10,000 investment in Class R-6 shares of our three U.S. equity-focused Defined Contribution Focus Funds when the first S&P 500 tracking fund began on August 31, 1976, through 2021.
Source: Capital Group. Class R-6 share results over the same time frame for American Mutual Fund and The Investment Company of America, the two other U.S. equity–focused American Funds that existed when the first S&P 500 tracking fund began on August 31, 1976, were lower than the results of Washington Mutual Investors Fund but higher than those of the S&P 500.
Over rolling monthly 10-year periods through 2021, the fund has frequently outpaced the S&P 500 and its peer average.†
Percentage of rolling periods in which:
Fund outpaced index:
Fund outpaced peers:
394 out of 536
481 out of 536
Rolling monthly 10-year periods
Morningstar Analyst RatingTM of Gold‡,2
Over rolling monthly 10-year periods through 2021, the fund has frequently outpaced the S&P 500 and its peer average.†
Percentage of rolling periods in which:
Fund outpaced index:
Fund outpaced peers:
363 out of 458
456 out of 458
Rolling monthly 10-year periods
Morningstar Analyst RatingTM of Silver‡2
A “most used” defined
contribution plan fund§
Morningstar
"Thrilling 31" fund**
Income focus has provided downside resilience.
Average monthly rolling 10-year downside capture ratio for 30 years ended December 31, 2021.1
Source: Morningstar, Capital Group. WMIF yield is 30-day SEC yield, average yields are 12-month yields, as of December 31, 2021. Downside capture ratio is the ratio of a fund's return when the index was down, divided by the return of the index during those periods. For example, a downside capture ratio lower than 100 indicates the fund produced a higher return than the index during periods when the index was down, and a ratio higher than 100 indicates a lower return than the index. In October 2018, WMIF was placed in the Large Blend category. Previously the fund had been classified as Large Value for a number of years.
Morningstar Analyst RatingTM of Gold‡2
A “most used” defined
contribution plan fund§
Simplifying equity choices in defined contribution retirement plan menus may help improve participant decision-making.
†Rolling monthly 10-year periods from the first month-end after the fund’s inception date (May 1, 1967, for AMCAP Fund; December 1, 1973, for The Growth Fund of America) through December 31, 2021. 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.
‡As of June 15, 2022, for AMCAP Fund, March 15, 2022, for The Growth Fund of America, and July 27, 2022, for Washington Mutual Investors Fund, based on Class R-6 shares.
§Source: "Mutual funds most used by DC plans, by asset class,” Pensions & Investments, December 13, 2021, based on assets as of June 30, 2021, U.S. equity category.
**Source: Morningstar, "The Thrilling 31" 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. Visit morningstar.com for more details.
Unless otherwise indicated, data is as of December 31, 2021, and fund data is for Class R-6 shares.
S&P 500 Index (“Index”) is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks. The Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group.
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. View current mutual fund SEC yields.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
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