TDF Evaluation

How the Top 4 Target Date Fund Series Compare1

Here is a snapshot comparison of the four largest target date fund series, exploring their return rankings, Sharpe ratios and expenses. You can request a full report below.

Here’s How Each Target Date Fund Series Ranked The higher the total return, the higher the rank.

REV_Rankings_10Y_093017

Source: Morningstar®. Rankings are based on the funds’ average annual total returns as of 09/30/17 (updated monthly).

Sharpe Ratio2 (Risk-Adjusted Returns) The higher the number, the better the risk-adjusted results.

REV_sharpe_10y_093017

Source: Morningstar, as of 09/30/17 (updated monthly).

Expenses This shows how fees vary for each target date series.

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Source: Morningstar, as of each fund’s most recent prospectus.

Here’s How Each Target Date Fund Series Ranked The higher the total return, the higher the rank.

rev_rankings_5y_093017

Source: Morningstar. Rankings are based on the funds’ average annual total returns as of 09/30/17 (updated monthly).

Sharpe Ratio2 (Risk-Adjusted Returns) The higher the number, the better the risk-adjusted results.

REV_sharpe_5y_093017

Source: Morningstar, as of 09/30/17 (updated monthly).

Expenses This shows how fees vary for each target date series.

tdf-proview-surge-chart-3

Source: Morningstar, as of each fund’s most recent prospectus.

Here’s How Each Target Date Fund Series Ranked The higher the total return, the higher the rank.

REV_Rankings_3Y_093017

Source: Morningstar. Rankings are based on the funds’ average annual total returns as of 09/30/17 (updated monthly).

Sharpe Ratio2 (Risk-Adjusted Returns) The higher the number, the better the risk-adjusted results.

REV_sharpe_3y_093017

Source: Morningstar, as of 09/30/17 (updated monthly).

Expenses This shows how fees vary for each target date series.

tdf-proview-surge-chart-3

Source: Morningstar, as of each fund’s most recent prospectus.

Here’s How Each Target Date Fund Series Ranked The higher the total return, the higher the rank.

REV_Rankings_1Y_093017

Source: Morningstar. Rankings are based on the funds’ average annual total returns as of 09/30/17 (updated monthly).

Sharpe Ratio2 (Risk-Adjusted Returns) The higher the number, the better the risk-adjusted results.

REV_sharpe_1y_093017

Source: Morningstar, as of 09/30/17 (updated monthly).

Expenses This shows how fees vary for each target date series.

tdf-proview-surge-chart-3

Source: Morningstar, as of each fund’s most recent prospectus.

1Based on assets under management (as of 12/31/16). The series shown use the lowest expense share class with a minimum investment requirement of less than $100 million.
2Sharpe Ratio: Uses standard deviation to determine reward per unit of risk.
3Accumulation: The initial investment period for retirement that emphasizes capital appreciation to address longevity risk and ends approximately 15 years before retirement.
4Transition: The intermediate investment period for retirement that balances growth with capital preservation to mitigate market risk during the approximately 15 years prior to retirement.
5Distribution: The final investment period beginning at retirement that supports income generation and asset preservation.
6Retirement Income: This column displays data for vintages invested primarily for retirement income in target date series managed through retirement.

Want an In-Depth Report on the Glide Path, Volatility, Risk, Returns and Expenses of the Top 4 Target Date Fund Series?

Enter your information below (or call us at 1-888-421-0017) for a detailed report on the Top 4 target date fund series.

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We can help you with a target date search or provide you with a customized report comparing up to four target date fund series of your choice.

Report provided by Target Date ProView®

Target Date ProView—a powerful, time-saving tool—uses objective data to help you evaluate target date funds (TDFs) according to DOL guidelines. The tool provides:

  • Morningstar data on glide paths, expenses, returns and more.
  • An objective report with easy-to-understand graphs and tables.
  • A way to efficiently review TDFs for due diligence purposes.
tdf-2017-report-thumb

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Please expand this view for important information regarding investment objectives, strategies and risks of the four series.

tdf-2017-ipad-low

There are risks associated with each underlying fund. Please read the prospectus for more information.

Rankings are based on the funds’ average total returns within the Morningstar Target Date Fund category for each respective vintage. Past results are not predictive of results in future periods. The Morningstar rankings do not reflect the effects of sales charges, account fees or taxes. Investments assume all distributions are reinvested and reflect applicable fees and expenses.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses which can be obtained from a financial professional and should be read carefully before investing.

Use of Target Date ProView tool and reports are subject to home office approval.

All American Funds trademarks mentioned are owned by American Funds Distributors, Inc., an affiliated company or a fund. All other company and product names mentioned are the trademarks or registered trademarks of their respective companies.

Non-American Funds may include waivers and/or reimbursements, without which results would be lower and expenses higher. Please refer to each fund’s prospectus for details.

The investment adviser is currently reimbursing a portion of other expenses for each share class of American Funds 2060 Target Date Retirement Fund. The reimbursement will be in effect through at least January 1, 2018. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at any time. Investment results and net expense ratios reflect the reimbursement, without which the results would have been lower and the expenses would have been higher. The expense ratios are as of each fund’s prospectus available at the time of publication and include the weighted average expenses of the underlying funds.

When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower.