Better results in downturns | Capital Group

MARCH 2018

Better results in downturns

Can a fund that doesn't rise as much as the market ultimately beat the market over the long term? Our seven U.S. equity-focused American Funds have.
How did we do it? Although these funds didn't rise quite as high as the market during upswings, in the months when the market fell, they didn't fall as far on average.
Ultimately, losing less than the market during those drops helped these funds produce not only better results, but also a smoother ride, which we believe makes it easier for you to stay invested and achieve your long-term goals.
In fact, over the last 20 years, these funds beat the S&P 500 by an average of 1.65% per year.
And if this doesn't seem significant, consider this: a hypothetical $100,000 investment in these seven funds would have produced $544,983 on average — roughly $143,000 more than the index's $401,346.

American Funds Investment Results

Results as of

December 31, 2018

Average Annual Total Returns for Class F-2 Shares (%)

10-year monthly rolling

returns (%)

Funds

1 Year

5 Years

10 Years

20 Years

20 Years

AMCAP Fund® (AMCAP)

-1.70

8.30

14.28

7.63

6.80

The Growth Fund of America® (GFA)

-2.69

9.11

13.76

8.45

6.73

The New Economy Fund® (NEF)

-4.02

7.62

14.98

7.19

7.19

American Mutual Fund® (AMF)

-1.88

7.75

12.01

7.02

6.63

Fundamental Investors® (FI)

-6.43

8.08

13.12

7.99

7.33

The Investment Company of America® (ICA)

-6.31

7.42

11.86

6.70

5.99

Washington Mutual Investors Fund℠ (WMIF)

-2.72

8.20

12.38

6.71

6.04

American Funds Blend*

-3.64

8.11

13.24

7.50

6.74

Standard & Poor's 500 Composite Index

-4.38

8.49

13.12

5.62

5.44

There have been periods when the American Funds haven't beaten their indexes.

†American Funds Blend comprises results for an equally weighted investment, rebalanced monthly, in Washington Mutual Investors FundSM, AMCAP Fund®, American Mutual Fund®, The Investment Company of America®, The Growth Fund of America®, Fundamental Investors®, and The New Economy Fund®, the seven U.S. equity-focused American Funds in existence for this 20-year period. Excludes multi-asset American Funds.

The S&P indexes are products of S&P Dow Jones Indices LLC and/or its affiliates and have been licensed for use by Capital Group. Copyright © 2018 S&P Dow Jones Indices, LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC.


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. Share prices and/or 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.

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. 

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

When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. 

American Funds Distributors, Inc., member FINRA.

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.

Regular investing does not ensure a profit or protect against loss. Investors should consider their willingness to keep investing when share prices are declining.

Fund results for periods before a share class was sold are hypothetical. These hypothetical returns were calculated by adjusting Class A share results without a sales charge for the difference between the Class A share expense ratio and the estimated expense ratio for the share class as of the date of first sale.