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American Funds Investment Company of America Class 529-F-3 (FAOOX) Sharpe Ratio: 2.30

Mutual Fund · Currency in USD · Last updated Jun 3, 2026

The Investment Company of America seeks long-term growth of capital and income by investing primarily in larger, well-established companies representing a wide cross section of the U.S. economy.

FAOOX's Sharpe Ratio of 2.30 indicates that for each unit of volatility, it generates 2.30 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 3, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets.

FAOOX Sharpe Ratio Rank

FAOOX Sharpe Ratio Rank: 61.061
Above Average

FAOOX ranks above 61.0% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating above-average returns relative to volatility. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Above-average risk-adjusted returns with room for improvement
  • Compare against category peers to gauge relative positioning
  • Monitor for movement toward top tier or decline toward median
  • Consider pairing with top-tier holdings to improve portfolio efficiency

FAOOX Sharpe Ratio Market Positioning

The chart shows FAOOX's Sharpe Ratio relative to all mutual funds on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 1.42 or lower
  • Yellow zone (middle 50%): 1.42 to 2.51
  • Green zone (top 25%): 2.51 or higher
  • Top 1%: 4.65+
  • Median: 2.09 — half of all investments score higher

How it compares to other similar mutual funds

The table compares American Funds Investment Company of America Class 529-F-3's Sharpe Ratio with other mutual funds in the Large Cap Blend Equities category across multiple time periods, showing how FAOOX's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 3, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
VPCCXVanguard PRIMECAP Core Fund3.91
VPMAXVanguard PRIMECAP Fund Admiral Shares3.76
DHAMXCentre American Select Equity Fund3.26
POSKXPrimeCap Odyssey Stock Fund3.22
QCELXAQR Large Cap Multi-Style Fund3.18
DESGXDWS ESG Core Equity Fund3.08
GTLOXGlenmede Quantitative U.S. Large Cap Core Equity Portfolio3.05
SVSPXState Street S&P 500 Index Fund Class N3.03
AIGOXAlger Growth & Income Portfolio3.03
AMFEXAAMA Equity Fund3.03
FAOOXAmerican Funds Investment Company of America Class 529-F-32.30

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows FAOOX's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when FAOOX consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does FAOOX fit in your portfolio?

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