- CUSIP
- 02630T357
- Issuer
- American Funds
- Inception Date
- Feb 1, 2007
- Category
- Target Retirement Date
- Index Tracked
- No Index (Active)
- Distribution Policy
- Distributing
- Asset Class
- Multi-Asset
Share Price Chart
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Performance
RFGTX Performance Chart
American Funds 2040 Target Date Retirement Fund Class R6 (RFGTX) is up 9.0% since the beginning of the year. RFGTX is currently trading at $25 per share. Investors who bought $1,000 worth of RFGTX shares 5 years ago would now be looking at an investment worth $1,586.
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Returns By Period
American Funds 2040 Target Date Retirement Fund Class R6 (RFGTX) has returned 9.03% so far this year and 22.34% over the past 12 months. Over the last ten years, RFGTX has returned 11.90% per year, falling short of the S&P 500 Index benchmark, which averaged 13.88% annually.
American Funds 2040 Target Date Retirement Fund Class R6
- 1D
- 0.88%
- 1M
- 1.77%
- YTD
- 9.03%
- 6M
- 9.05%
- 1Y
- 22.34%
- 3Y*
- 17.23%
- 5Y*
- 9.66%
- 10Y*
- 11.90%
Benchmark (S&P 500 Index)
- 1D
- -0.37%
- 1M
- -0.01%
- YTD
- 9.16%
- 6M
- 8.64%
- 1Y
- 25.22%
- 3Y*
- 19.78%
- 5Y*
- 11.99%
- 10Y*
- 13.88%
RFGTX Monthly Returns History
Based on dividend-adjusted daily data since Jan 4, 2010, RFGTX's average daily return is +0.05%, while the average monthly return is +0.93%. At this rate, an investment would double in approximately 6.2 years.
Historically, 68% of months were positive and 32% were negative. The best month was Nov 2020 with a return of +10.5%, while the worst month was Mar 2020 at -11.3%. The longest winning streak lasted 15 consecutive months, and the longest losing streak was 5 months.
On a daily basis, RFGTX closed higher 53% of trading days. The best single day was Mar 24, 2020 with a return of +6.6%, while the worst single day was Mar 16, 2020 at -9.6%.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2.51% | 1.18% | -6.00% | 7.80% | 3.70% | 0.04% | 9.03% | ||||||
| 2025 | 3.55% | -0.70% | -3.50% | 0.83% | 5.20% | 4.76% | 0.71% | 1.97% | 2.49% | 1.55% | 1.03% | 0.38% | 19.52% |
| 2024 | 0.38% | 3.81% | 2.89% | -3.51% | 3.33% | 1.96% | 1.88% | 2.28% | 1.99% | -1.72% | 3.07% | -2.16% | 14.80% |
| 2023 | 6.00% | -2.71% | 2.48% | 1.36% | -0.87% | 4.65% | 2.75% | -2.02% | -4.13% | -2.21% | 8.10% | 5.26% | 19.33% |
| 2022 | -5.65% | -2.40% | 1.15% | -7.56% | 0.67% | -7.41% | 6.01% | -3.35% | -7.86% | 5.54% | 6.76% | -3.40% | -17.53% |
| 2021 | -0.43% | 2.26% | 2.11% | 3.92% | 1.29% | 1.08% | 0.78% | 2.31% | -3.48% | 5.01% | -2.46% | 3.66% | 16.88% |
Benchmark Metrics
American Funds 2040 Target Date Retirement Fund Class R6 has an annualized alpha of 1.10%, beta of 0.78, and R2 of 0.93 versus S&P 500 Index. Calculated based on daily prices since January 04, 2010.
- This fund participated in 85.16% of S&P 500 Index downside but only 82.79% of its upside - more exposed to losses than it benefited from rallies.
- Alpha
- 1.10%
- Beta
- 0.78
- R²
- 0.93
- Upside Capture
- 82.79%
- Downside Capture
- 85.16%
Expense Ratio
RFGTX has an expense ratio of 0.36%, placing it in the medium range.
Return for Risk
Risk / Return Rank
RFGTX ranks 56 for risk / return — on par with similar mutual funds. You're getting a typical balance of risk and reward. Not a standout, but not a red flag either — a reasonable choice if other factors align with your goals.
Return / Risk — by metrics
The table below present risk-adjusted performance metrics for American Funds 2040 Target Date Retirement Fund Class R6 (RFGTX) and compare them to S&P 500 Index.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| RFGTX | Benchmark | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | 0.00 | ||
| Sortino ratioReturn per unit of downside risk | +0.10 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.37 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.63 | 2.78 | -0.15 |
| Martin ratioReturn relative to average drawdown | 11.70 | 12.44 | -0.74 |
Dividends
Dividend History
American Funds 2040 Target Date Retirement Fund Class R6 provided a 5.70% dividend yield over the last twelve months, with an annual payout of $1.44 per share. The fund has been increasing its distributions for 2 consecutive years.
| Period | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend | $1.44 | $1.44 | $0.78 | $0.52 | $1.07 | $1.08 | $0.66 | $0.75 | $0.72 | $0.41 | $0.50 | $0.67 |
Dividend yield | 5.70% | 6.22% | 3.80% | 2.81% | 6.71% | 5.22% | 3.53% | 4.59% | 5.29% | 2.70% | 3.88% | 5.43% |
Monthly Dividends
The table displays the monthly dividend distributions for American Funds 2040 Target Date Retirement Fund Class R6. The dividends shown in the table have been adjusted to account for any splits that may have occurred.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | ||||||
| 2025 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $1.44 | $1.44 |
| 2024 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.78 | $0.78 |
| 2023 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.52 | $0.52 |
| 2022 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $1.07 | $1.07 |
| 2021 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $1.08 | $1.08 |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
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Worst Drawdowns
The table below displays the maximum drawdowns of the American Funds 2040 Target Date Retirement Fund Class R6. 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 Class R6 was 28.52%, occurring on Mar 23, 2020. Recovery took 84 trading sessions.
The current American Funds 2040 Target Date Retirement Fund Class R6 drawdown is 0.20%.
Related event | Drawdown | Fall | Recovery | Underwater |
|---|---|---|---|---|
COVID crash2020 | -28.52%Mar 2020 | 1mo 2d | 4mo 1d | 5mo 3dFeb 2020 - Jul 2020 |
Bear market2022 | -24.85%Oct 2022 | 11mo 1d | 1y 3mo | 2y 2moNov 2021 - Feb 2024 |
2011 correction2011 | -18.41%Oct 2011 | 5mo 3d | 5mo 14d | 10mo 17dMay 2011 - Mar 2012 |
Rate-hike selloffLate 2018 | -15.59%Dec 2018 | 10mo 29d | 3mo 12d | 1y 2moJan 2018 - Apr 2019 |
2016 correction2016 | -14.61%Feb 2016 | 8mo 25d | 5mo 4d | 1y 1moMay 2015 - Jul 2016 |
Drawdown Indicators
| RFGTX | Benchmark | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -28.52% | -56.78% | +28.26% |
Max Drawdown (1Y)Largest decline over 1 year | -8.39% | -9.10% | +0.71% |
Max Drawdown (3Y)Largest decline over 3 years | -13.48% | -18.90% | +5.42% |
Max Drawdown (5Y)Largest decline over 5 years | -24.85% | -25.43% | +0.58% |
Max Drawdown (10Y)Largest decline over 10 years | -28.52% | -33.92% | +5.40% |
Current DrawdownCurrent decline from peak | -0.20% | -1.80% | +1.60% |
Average DrawdownAverage peak-to-trough decline | -3.90% | -10.71% | +6.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.89% | 2.03% | -0.14% |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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