The Capital Advantage
The indexing debate isn’t just an academic exercise. You have real goals and financial needs. How can you increase the likelihood of success? Choosing an investment manager that has consistently outpaced the broad market is crucial. The right decision can make a big difference in long-term investment outcomes.
For instance, this chart shows the results of a hypothetical $100,000 investment over 20 years in a blend of relevant indexes compared to equity-focused American Funds. For an investor who contributed $500 a month for 20 years, the American Funds would have provided an ending value $40,043 greater than the index blend. That’s 17% more wealth.
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. View fund expense ratios and returns.
Returns shown at net asset value (NAV) have all distributions reinvested. If a sales charge had been deducted, the results would have been lower.
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.