American Funds 2030 Target Date Retirement Fund (AAETX)

American Funds 2030 Target Date Retirement Fund (AAETX) is one of the top target date mutual funds. This American fund uses its assets to purchase a greater portion of its assets in bond, equity income and balanced funds as it approaches and passes its target date.

AAETX Fund Profile

• Fund Inception Date: 02/01/2007
• Ticker Symbol: AAETX
• CUSIP: 02630T712
• Beta (3yr): 1.10
• Rank in category (YTD): 4%
• Category: Target Date 2026-2030
• Distribution Yield: 1.01%
• Capital Gains: -
• Expense Ratio: 0.75%
• Net Assets: $ 4.6 billion
• Number of Years Up: 5 year
• Number of Years Down: 2 year
• Annual Turnover Rate: 2%

This American fund has $4.6 billion of total net assets. The annual dividend is 1.01%. It has 4-stars and silver rating from Morningstar. The portfolio turnover rate is low, only 2%. This mutual fund is also known as fund of funds. You can buy this mutual fund with $250 initial funding.

American Funds 2030 Target Date Retirement Fund Performance

The fund performance has been good. It recorded 5 years of positive return and only 2 years of negative return since its inception in 2007. In 2014, the 1 year total return is 6.67%. Based on the load adjusted returns, the performance of AAETX is:

• 1-year: 0.54%
• 3-year: 13.48%
• 5-year: 10.01%

The asset allocation as of November 2014 is Stocks (77.34%), Bonds (11.92%) and Short-term reserves (10.74%). The allocations to underlying funds are American Funds U.S. Government Securities Fund, American Funds American Balanced Fund, American Funds Washington Mutual Fund, American Funds Investment Company of American Fund, and American Funds News Perspective Fund.

More: Best Target Date 2026-2030 Mutual Funds 2014

If you are interested in other classes of this American target date fund, you can check:

• American Funds 2030 Target Date Retire B (BBETX)
• American Funds 2030 Target Date Retire C (CCETX)
• American Funds 2030 Target Date Retire F1 (FAETX)
• American Funds 2030 Target Date Retire F2 (FBETX)
• American Funds 2030 Target Date Retire R1 (RAETX)
• American Funds 2030 Target Date Retire R2 (RBETX)
• American Funds 2030 Target Date Retire R2E (RBEEX)
• American Funds 2030 Target Date Retire R3 (RCETX)
• American Funds 2030 Target Date Retire R4 (RDETX)
• American Funds 2030 Target Date Retire R5 (REETX)
• American Funds 2030 Target Date Retire R6 (RFETX)

According to the fund prospectus, the primary investment risks are stock market risk, country/ regional risk, currency risk, interest rate risk, income risk, credit risk, call risk, prepayment risk, asset allocation risk, etc.

More: Top American Funds Mutual Funds 2015

Pros:

• It is great to use as a single fund in your retirement account.
• Performance has been great and consistent.

Cons:

• For class A, this American Funds 2030 Target Date Retirement Fund has a sales load of 5.75%.