A target date series is only as good as its underlying strategies. This infographic below illustrates just how "Terrific" the underlying strategies of American Funds Target Date Retirement Series® have been.
- Rigorously screened — Morningstar applied strict criteria to 8,000 funds to create its latest list of "Terrific" funds. Only 28 funds made the grade, and six of those were American Funds.
- The most recognized strategies — All six of our "Terrific" strategies are in our target date series — giving our series more recognized underlying strategies than any other.*
Six of the underlying strategies in American Funds Target Date Retirement Series were recognized on the Morningstar "The Terrific 28" list.†
Passive funds are not managed to generate returns that exceed their benchmarks, so target date funds that have only passive underlying investments likely will not have funds on the Morningstar "Terrific" list.
In evaluating target date funds, investors should consider how the various features of each fund, including the underlying funds, investment results, expenses and glide path construction, apply to their personal situation.
Source: "2019 Target-Date Fund Landscape," Morningstar, Inc., as defined by assets under management as of December 31, 2018.
Rigorously screened by Morningstar
Morningstar evaluated 8,000 funds based on manager ownership, fund results and expense ratios, as well as Morningstar risk, analyst and parent ratings. Less than half of 1% made the "Terrific" list.
American Funds has more “Terrific" strategies than any other target date series
Six of the underlying equity-focused strategies in our Series made "The Terrific 28" list† — the most of any target date series in the industry.*