American Funds 2040 Target Date Retirement Fund Class A

Frequently Asked Questions About AAGTX

What does AAGTX invest in?

The fund utilizes a dynamic asset allocation strategy, gradually shifting its portfolio to hold a larger proportion of its assets in less volatile options such as fixed income, equity-income, and balanced funds as it nears and then passes its specific target retirement year. To achieve its goals, the fund's advisor builds its portfolio by investing in a diverse selection of underlying American Funds, employing distinct combinations and proportional weightings. These underlying components represent a wide range of investment approaches, including growth, growth-and-income, equity-income, balanced, and fixed income funds, each chosen for their unique objectives and strategic contributions.

What is the expense ratio of AAGTX?

American Funds 2040 Target Date Retirement Fund Class A (AAGTX) charges an expense ratio of 0.68%. This is the annual fee deducted from fund assets to cover management and operations.

How big is AAGTX?

American Funds 2040 Target Date Retirement Fund Class A (AAGTX) manages $53.30B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is AAGTX actively managed or an index fund?

AAGTX's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.

When was AAGTX launched?

American Funds 2040 Target Date Retirement Fund Class A (AAGTX) launched in January 2007 and is managed by Capital Group.

How has AAGTX performed?

AAGTX's total return — price change plus reinvested distributions — is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.