American Funds 2040 Target Date Retirement Fund® Class R-1 (RAKTX)
| Fund Assets | 49.89B |
| Expense Ratio | 1.45% |
| Min. Investment | $250 |
| Turnover | 6.00% |
| Dividend (ttm) | 1.20 |
| Dividend Yield | 5.26% |
| Dividend Growth | 110.19% |
| Payout Frequency | Annual |
| Ex-Dividend Date | Dec 24, 2025 |
| Previous Close | 22.85 |
| YTD Return | 2.42% |
| 1-Year Return | 16.40% |
| 5-Year Return | 45.50% |
| 52-Week Low | 17.12 |
| 52-Week High | 23.08 |
| Beta (5Y) | n/a |
| Holdings | 25 |
| Inception Date | Feb 1, 2007 |
About RAKTX
American Funds 2040 Target Date Retirement Fund Class R-1 is a target-date mutual fund crafted to align with the retirement timeline of investors planning to retire around the year 2040. Managed by Capital Research and Management Company, the fund is designed to provide a diversified investment solution within a single portfolio, automatically adjusting its asset allocation over time. Early in its lifecycle, the fund emphasizes growth through investments predominantly in equities. As the target date approaches, it gradually reallocates towards a higher proportion of fixed income, equity-income, and balanced funds to prioritize income generation and capital preservation. This dynamic strategy seeks to balance total return with stability, adapting to investors’ changing risk tolerance as retirement nears. The fund serves as a comprehensive retirement savings vehicle, leveraging a mix of underlying American Funds to offer exposure across various asset classes and market sectors. Its structure makes it a popular choice in employer-sponsored retirement plans, providing a straightforward approach to long-term retirement investing and systematic risk management throughout an investor’s career and into retirement.
Performance
RAKTX had a total return of 16.40% in the past year, including dividends. Since the fund's inception, the average annual return has been 10.60%.
Top 10 Holdings
65.88% of assets| Name | Symbol | Weight |
|---|---|---|
| American Funds American Balanced Fund® Class R-6 | RLBGX | 8.25% |
| American Funds Capital World Growth and Income Fund® Class R-6 | RWIGX | 7.16% |
| American Funds American Mutual Fund® Class R-6 | RMFGX | 6.97% |
| American Funds Fundamental Investors® Class R-6 | RFNGX | 6.96% |
| American Funds Growth Fund of Amer R6 | RGAGX | 6.87% |
| American Funds AMCAP Fund® Class R-6 | RAFGX | 6.87% |
| American Funds New Perspective Fund® Class R-6 | RNPGX | 6.32% |
| American Funds Washington Mutual Investors Fund Class R-6 | RWMGX | 5.93% |
| American Funds SMALLCAP World Fund® Class R-6 | RLLGX | 5.70% |
| American Funds U.S. Government Securities Fund® Class R-6 | RGVGX | 4.87% |
Dividend History
| Ex-Dividend | Amount | Pay Date |
|---|---|---|
| Dec 24, 2025 | $1.2027 | Dec 26, 2025 |
| Dec 26, 2024 | $0.5722 | Dec 27, 2024 |
| Dec 22, 2023 | $0.3384 | Dec 26, 2023 |
| Dec 23, 2022 | $0.8908 | Dec 27, 2022 |
| Dec 27, 2021 | $0.8677 | Dec 28, 2021 |
| Dec 28, 2020 | $0.4926 | Dec 29, 2020 |