The Capital Advantage | Capital Group

The Capital Advantage

The Capital Advantage℠ Can Help You Pursue Greater Wealth 

The difference between financial success and shortfall can hinge on the selection of an investment manager. The evidence shows American Funds equity funds have a long history of outpacing the market and helping investors achieve their objectives.

American Funds has a track record of superior returns. Our equity-focused funds have consistently added value over a variety of market cycles and have outpaced their indexes the majority of the time.    

The Equity-Focused American Funds Have a Long History of Outpacing the Market Decade After Decade, Our Investment Management Has Provided Investors With an Advantage

Data from published sources were calculated internally.

The selection of funds that meet key criteria can be crucial in portfolio construction. Look for low fees and high manager ownership. Together, those traits can be a powerful combination for investors.

Characteristics of Core Funds That Added Value Two Screens Can Help Sharpen Your Search

Source: Capital Group, based on Morningstar data.2

The selection of an investment manager with a proven track record of consistently outpacing the broad market is crucial. The right decision can transform long-term investment outcomes and make the difference between financial success and shortfall.

The Capital Advantage Can Be the Difference Between Success and Shortfall Equity-Focused American Funds Provided a Significant Advantage for Investors

Source: Capital Group, based on Morningstar data.3

1Numbers of periods are based on rolling monthly data for all funds — reducing entry- and exit-point bias and better reflecting the range of entry points experienced by investors. American Funds represents 17 equity-focused funds, in aggregate: AMCAP Fund, American Balanced Fund, American Funds Global Balanced Fund, American Mutual Fund, Capital Income Builder, Capital World Growth and Income Fund, EuroPacific Growth Fund, Fundamental Investors, The Growth Fund of America, The Income Fund of America, International Growth and Income Fund, The Investment Company of America, The New Economy Fund, New Perspective Fund, New World Fund, SMALLCAP World Fund and Washington Mutual Investors Fund. For each fund’s comparable index/index blend, see Methodology. Past results are not predictive of results in future periods.

2Source: Capital Group, based on Morningstar data. Based on monthly returns from January 1996 to December 2015. U.S. funds are those in the Morningstar Large Value, Large Blend and Large Growth categories. U.S. index is S&P 500. International funds are those in the Morningstar Foreign Large Value, Foreign Large Blend and Foreign Large Growth categories. International index is MSCI ACWI ex USA. The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. Unless otherwise indicated, all distributions were reinvested.

3Based on monthly returns net of fees. Average annualized returns include withdrawals. See Appendix for methodology.

Replace Myths With Facts

Take a second look at some common misperceptions about index investing.

Myth 1: You Can’t Beat the Index

Myth 2: Index Funds Are Safer

Use this scorecard to see how a group of Select Equity funds has, on average, outpaced the index over one-, three-, five-, and 10-year rolling periods.

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. 

Past results are not predictive of results in future periods.