Can I find funds that have beaten the index? I can.
As you can see, an investment manager with a proven track record of outpacing the market can produce significantly greater wealth than an index investment.
The first S&P 500 index-tracking fund was founded in 1976. Between then and now, an investor could have done well for themselves by keeping their money invested in an index-tracking fund. But, if they had invested in any of the five U.S. equity-focused American Funds available for investment at the same time, the value of their investment would have increased significantly.
In the video below, we compare the results of a hypothetical $10,000 investment in the S&P 500 Index and our five funds — The Growth Fund of America®, AMCAP Fund®, Washington Mutual Investors Fund℠, The Investment Company of America® and American Mutual Fund®. In fact, the results below are net of all expenses in one of our most expensive share classes, making the funds' performance even more compelling.
Figures shown are past results for Class A shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Fund results reflect deduction of maximum sales charge (5.75% for equity funds). For current information and month-end results, visit americanfunds.com.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of each fund’s prospectus available at time of publication. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Please see americanfunds.com for more information. Source for industry average expense ratios is Lipper, based on comparable categories for front-end load funds, excluding funds of funds, as of each fund’s most recent fiscal year-end available as of December 31, 2018. The Lipper categories for the funds are: AMCAP Fund (Growth); The Growth Fund of America (Large-Cap Growth); The Investment Company of America, Washington Mutual Investors Fund and American Mutual Fund (Growth & Income).
Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group which receives fees for managing, distributing and/or servicing its investments.
©2019 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. These numbers were calculated by the Capital Group based on underlying Morningstar data.
Standard & Poor’s 500 Composite Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks. Standard & Poor’s 500 Composite Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright© 2019 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 is prohibited without written permission of S&P Dow Jones Indices LLC. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.