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The Morningstar "Thrilling" building blocks of our target date series.

Out of more than 8,000 funds, only 36 were deemed "Thrilling" by Morningstar — and 7 of those are American Funds.*


Funds were vetted with 8 tests assessing returns, expenses, risk, analyst ratings and more. Less than half of 1% made the final cut.
 


Graphic shows that out of more than 8,000 funds surveyed, only 36 passed Morningstar tests to be considered "Thrilling" with 7 from American Funds.

 


More "Thrilling 36" building blocks than any other target date series

 
Of the four largest target date series, American Funds offers the most "Thrilling" funds as underlying strategies in its target date vintages.†

Graph shows American Funds' target date series has 7 Morningstar "Thrilling" funds. T. Rowe Price's has 2, and Fidelity's and Vanguard's have 0.

 


Morningstar-selected underlying strategies in each American Funds Target Date Retirement Series® vintage.†

 

Graph shows The Growth Fund of America and New Perspective Fund are in every American Funds Target Date Retirement Series vintage except the 2010 fund; American Mutual Fund, Capital World Growth and Income Fund and American Balanced Fund are in every vintage (2010 through 2065); and The Income Fund of America and Capital Income Builder are in every vintage except the 2050, 2055, 2060 and 2065 funds.

*Source: Morningstar, "Fund Spy: The Thrilling 36," by Russel Kinnel, August 2020. 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. American Funds Target Date Retirement Series invests in Class R-6 shares of the underlying American Funds. Not all seven American Funds strategies are in each target date fund. Underlying funds may change over time. The list's criteria have changed over the years. Visit www.morningstar.com for more details.

 

†Not all seven funds listed in the “The Thrilling 36” list are in each target date fund. Underlying funds may change over time.

 

Each target date fund is composed of a mix of American Funds and is subject to the risks and returns of the underlying funds. Underlying funds may be added or removed during the year. Although the target date funds are managed for investors on a projected retirement date time frame, the funds’ allocation strategy does not guarantee that investors’ retirement goals will be met. The target date is the year that corresponds roughly to the year in which an investor is assumed to retire and begin taking withdrawals. American Funds investment professionals manage the target date fund’s portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the fund gets closer to its target date. Investment professionals continue to manage each fund for approximately 30 years after it reaches its target date.
 

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