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American Funds 2040 Target Date Retirement Fund (A...
Performance
Risk-Adjusted Performance
Dividends
Drawdowns
Volatility

Fund Info

ISINUS02630T5719
CUSIP02630T571
IssuerAmerican Funds
Inception DateJan 31, 2007
CategoryTarget Retirement Date
Min. Investment$250
Asset ClassMulti-Asset

Asset Class Size

Large-Cap

Asset Class Style

Blend

Expense Ratio

AAGTX features an expense ratio of 0.33%, falling within the medium range.


Expense ratio chart for AAGTX: current value at 0.33% compared with the broader market ranging from 0.00% to 2.12%.0.50%1.00%1.50%2.00%0.33%

Share Price Chart


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Compare to other instruments

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.


American Funds 2040 Target Date Retirement Fund

Popular comparisons: AAGTX vs. AAETX, AAGTX vs. VTMFX, AAGTX vs. DRIHX, AAGTX vs. ANWPX, AAGTX vs. VFORX, AAGTX vs. VOO

Performance

Performance Chart

The chart shows the growth of an initial investment of $10,000 in American Funds 2040 Target Date Retirement Fund, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends.


240.00%260.00%280.00%300.00%320.00%FebruaryMarchAprilMayJuneJuly
297.50%
273.98%
AAGTX (American Funds 2040 Target Date Retirement Fund)
Benchmark (^GSPC)

S&P 500

Returns By Period

American Funds 2040 Target Date Retirement Fund had a return of 8.66% year-to-date (YTD) and 13.88% in the last 12 months. Over the past 10 years, American Funds 2040 Target Date Retirement Fund had an annualized return of 8.66%, while the S&P 500 had an annualized return of 10.64%, indicating that American Funds 2040 Target Date Retirement Fund did not perform as well as the benchmark.


PeriodReturnBenchmark
Year-To-Date8.66%13.78%
1 month-0.35%-0.38%
6 months8.31%11.47%
1 year13.88%18.82%
5 years (annualized)9.31%12.44%
10 years (annualized)8.66%10.64%

Monthly Returns

The table below presents the monthly returns of AAGTX, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.


JanFebMarAprMayJunJulAugSepOctNovDecTotal
20240.38%3.78%2.81%-3.49%3.30%1.88%8.66%
20235.97%-2.73%2.44%1.31%-0.82%4.56%2.72%-2.04%-4.16%-2.23%8.05%5.26%18.95%
2022-5.68%-2.42%1.11%-7.56%0.62%-7.45%6.00%-3.31%-7.98%5.52%6.76%-3.41%-17.80%
2021-0.43%2.22%2.06%3.89%1.25%1.03%0.78%2.27%-3.50%5.00%-2.52%3.67%16.51%
2020-0.80%-5.72%-11.29%9.97%4.94%2.51%4.47%4.76%-2.36%-2.06%10.46%4.37%18.41%
20196.68%2.41%1.75%2.71%-4.88%5.54%0.32%-1.34%0.78%2.18%3.08%2.94%23.94%
20185.20%-3.25%-1.42%0.52%1.24%-0.06%2.19%0.63%0.25%-6.82%1.88%-5.74%-5.86%
20172.89%2.28%1.11%1.54%1.88%0.35%2.47%0.35%2.06%1.95%1.65%1.22%21.63%
2016-4.80%-0.68%6.28%1.29%0.80%0.24%3.40%0.23%0.61%-1.82%1.24%1.14%7.80%
2015-0.93%4.31%-1.13%1.82%0.82%-1.85%1.28%-5.58%-2.92%6.49%0.23%-1.74%0.24%
2014-2.63%4.58%-0.31%0.24%2.43%1.61%-1.88%2.91%-2.09%1.67%1.65%-0.37%7.81%
20134.03%0.57%2.63%2.66%0.98%-1.86%4.50%-2.07%4.58%3.62%2.03%3.34%27.75%

Risk-Adjusted Performance

Risk-Adjusted Performance Rank

The current rank of AAGTX is 62, suggesting that the investment has average results relative to other mutual funds in terms of risk-adjusted performance. This ranking is determined by the cumulative values of the indicators listed below.


The Risk-Adjusted Performance Rank of AAGTX is 6262
AAGTX (American Funds 2040 Target Date Retirement Fund)
The Sharpe Ratio Rank of AAGTX is 6262Sharpe Ratio Rank
The Sortino Ratio Rank of AAGTX is 6161Sortino Ratio Rank
The Omega Ratio Rank of AAGTX is 6060Omega Ratio Rank
The Calmar Ratio Rank of AAGTX is 6363Calmar Ratio Rank
The Martin Ratio Rank of AAGTX is 6464Martin Ratio Rank
The risk-adjusted ranks indicate the investment's position relative to the market. A rank closer to 100 signifies top-performing investments, while a rank closer to 0 might suggest underperformance, based on the selected ratio. The values are calculated based on the past 12 months of returns.

Risk-Adjusted Performance Indicators

The charts below present risk-adjusted performance metrics for American Funds 2040 Target Date Retirement Fund (AAGTX) and compare them to a chosen benchmark (^GSPC). These indicators evaluate an investment's returns against its associated risks.


AAGTX
Sharpe ratio
The chart of Sharpe ratio for AAGTX, currently valued at 1.46, compared to the broader market-1.000.001.002.003.004.005.001.46
Sortino ratio
The chart of Sortino ratio for AAGTX, currently valued at 2.11, compared to the broader market0.005.0010.002.11
Omega ratio
The chart of Omega ratio for AAGTX, currently valued at 1.26, compared to the broader market1.002.003.004.001.26
Calmar ratio
The chart of Calmar ratio for AAGTX, currently valued at 0.91, compared to the broader market0.005.0010.0015.0020.000.91
Martin ratio
The chart of Martin ratio for AAGTX, currently valued at 4.80, compared to the broader market0.0020.0040.0060.0080.00100.004.80
^GSPC
Sharpe ratio
The chart of Sharpe ratio for ^GSPC, currently valued at 1.66, compared to the broader market-1.000.001.002.003.004.005.001.66
Sortino ratio
The chart of Sortino ratio for ^GSPC, currently valued at 2.33, compared to the broader market0.005.0010.002.33
Omega ratio
The chart of Omega ratio for ^GSPC, currently valued at 1.29, compared to the broader market1.002.003.004.001.29
Calmar ratio
The chart of Calmar ratio for ^GSPC, currently valued at 1.35, compared to the broader market0.005.0010.0015.0020.001.35
Martin ratio
The chart of Martin ratio for ^GSPC, currently valued at 6.32, compared to the broader market0.0020.0040.0060.0080.00100.006.32

Sharpe Ratio

The current American Funds 2040 Target Date Retirement Fund Sharpe ratio is 1.46. This value is calculated based on the past 1 year of trading data and takes into account price changes and dividends.

Use the chart below to compare the Sharpe ratio of American Funds 2040 Target Date Retirement Fund with the selected benchmark, providing insights into the investment's historical performance in terms of risk-adjusted returns. Go to the Sharpe ratio tool for more fine-grained control over the calculation options.


Rolling 12-month Sharpe Ratio1.001.502.002.503.00FebruaryMarchAprilMayJuneJuly
1.46
1.66
AAGTX (American Funds 2040 Target Date Retirement Fund)
Benchmark (^GSPC)

Dividends

Dividend History

American Funds 2040 Target Date Retirement Fund granted a 2.31% dividend yield in the last twelve months. The annual payout for that period amounted to $0.46 per share.


PeriodTTM20232022202120202019201820172016201520142013
Dividend$0.46$0.46$1.02$1.02$0.61$0.70$0.67$0.37$0.46$0.63$0.62$0.42

Dividend yield

2.31%2.51%6.40%4.94%3.26%4.29%4.94%2.42%3.59%5.12%4.84%3.35%

Monthly Dividends

The table displays the monthly dividend distributions for American Funds 2040 Target Date Retirement Fund. The dividends shown in the table have been adjusted to account for any splits that may have occurred.


JanFebMarAprMayJunJulAugSepOctNovDecTotal
2024$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00
2023$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.46$0.46
2022$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$1.02$1.02
2021$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$1.02$1.02
2020$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.61$0.61
2019$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.70$0.70
2018$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.67$0.67
2017$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.37$0.37
2016$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.46$0.46
2015$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.63$0.63
2014$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.62$0.62
2013$0.42$0.42

Drawdowns

Drawdowns Chart

The Drawdowns chart displays portfolio losses from any high point along the way.


-5.00%-4.00%-3.00%-2.00%-1.00%0.00%FebruaryMarchAprilMayJuneJuly
-3.32%
-4.24%
AAGTX (American Funds 2040 Target Date Retirement Fund)
Benchmark (^GSPC)

Worst Drawdowns

The table below displays the maximum drawdowns of the American Funds 2040 Target Date Retirement Fund. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.

The maximum drawdown for the American Funds 2040 Target Date Retirement Fund was 48.78%, occurring on Mar 9, 2009. Recovery took 491 trading sessions.

The current American Funds 2040 Target Date Retirement Fund drawdown is 3.32%.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-48.78%Nov 1, 2007338Mar 9, 2009491Feb 16, 2011829
-28.54%Feb 20, 202023Mar 23, 202084Jul 22, 2020107
-25.09%Nov 17, 2021229Oct 14, 2022335Feb 15, 2024564
-18.54%May 3, 2011107Oct 3, 201198Feb 23, 2012205
-15.83%Jan 29, 2018229Dec 24, 201881Apr 23, 2019310

Volatility

Volatility Chart

The current American Funds 2040 Target Date Retirement Fund volatility is 2.97%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.


1.50%2.00%2.50%3.00%3.50%4.00%FebruaryMarchAprilMayJuneJuly
2.97%
3.80%
AAGTX (American Funds 2040 Target Date Retirement Fund)
Benchmark (^GSPC)