# American Funds 2040 Target Date Retirement Fund Class A (AAGTX): Mutual Fund Facts & Distributions > Markdown mirror of https://www.dividenddata.com/funds/aagtx for AI agents. Same live data as the HTML page, regenerated on the same refresh cycle. Not investment advice. - Issuer: Capital Group · Asset class: Series - Strategy: Thematic · Inception: 2007-02-01 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, bal... ## Key Facts | Metric | Value | |---|---| | Price | $24.59 | | Expense Ratio | 0.68% | | Assets Under Management | $52.64B | | NAV | $24.59 | | Holdings Count | 0 | | Distribution Yield (TTM) | 5.56% | | Annual Distribution (TTM) | $1.37 /share | | Distribution Frequency | Annual | | 52-Week Range | $21.87 – $25.54 | | Beta | 1.12 | ## Latest Distribution - Amount: $1.3677 /share - Ex-date: 2025-12-24 - Pay date: 2025-12-26 ## Frequently Asked Questions ### 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 $52.64B 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 February 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. ### Does AAGTX pay a dividend? American Funds 2040 Target Date Retirement Fund Class A (AAGTX) currently distributes little or no income. Trailing-twelve-month yield is 5.56%. Investors looking for income should consider income-focused alternatives. See the Peers tab. ### How often does AAGTX pay dividends? American Funds 2040 Target Date Retirement Fund Class A pays dividends Annual. Each ex-dividend date, record date, and payment date is listed in the dividend history table on this page. ### What is AAGTX's dividend yield? AAGTX's trailing-twelve-month yield is 5.56%, calculated from the sum of dividends over the past year divided by the current price. ### When is AAGTX's next ex-dividend date? The most recently announced ex-dividend date for AAGTX was 2025-12-24. The next ex-date typically follows Annual; once announced it appears at the top of the dividend history table on this page. ### How much will AAGTX's expense ratio cost me over 30 years? On a $10,000 investment compounding at 7% gross return, a 0.68% expense ratio quietly compounds against your balance every year. The Fee Compounding Forecast card above projects the dollar drag for any holding period and assumption you pick. The typical result for a 1.0% expense ratio on a 30-year hold is roughly 25% of the final balance lost to fees. ### How does AAGTX charge its expense ratio? The expense ratio is deducted in tiny daily slices from AAGTX's net asset value (NAV). You never see a bill. The price quoted on every exchange is already net of fees. There's no "fee day" to avoid; the cost is continuous and built into the trading price. ### Why does AAGTX cost more than a fund like VOO? AAGTX's strategy (current expense ratio 0.68%) is different from a broad-market index tracker like VOO, so its fee belongs to a different cohort. The Cost Verdict card above shows you where AAGTX sits within its own category, which is the comparison that actually matters. ### Are there cheaper alternatives to AAGTX? The Lower-Fee Alternatives card above lists mutual funds following the same investment strategy as AAGTX (0.68%) but at a lower expense ratio. Each row shows the fee gap, the peer's AUM as a liquidity sanity-check, and a direct link to that fund's analysis page. Cheaper price doesn't automatically mean better. Verify the peer holds what you actually want. ## More on Dividend Data - Overview (HTML): https://www.dividenddata.com/funds/aagtx - Distribution history: https://www.dividenddata.com/funds/aagtx/dividend - Holdings & diversification: https://www.dividenddata.com/funds/aagtx/diversification - Fees & cheaper alternatives: https://www.dividenddata.com/funds/aagtx/expenses - Peer comparison: https://www.dividenddata.com/funds/aagtx/peers Data sourced from primary filings and market data providers; see https://www.dividenddata.com/methodology.