About RDGTX
The American Funds 2040 Target Date Retirement Fund Class R-4 is a target-date mutual fund designed to help investors plan for retirement, specifically those intending to retire around the year 2040. This fund pursues a balanced approach, seeking growth, income, and capital preservation by dynamically adjusting its mix of equity and fixed income investments as the retirement date approaches and beyond. Initially, the portfolio is weighted more heavily toward equities to promote capital appreciation, but gradually shifts to a more conservative allocation, increasing bond and income holdings to better manage risk and help preserve assets as the target date nears. The fund invests in a diversified selection of underlying American Funds, with significant exposure to both domestic and global markets across large-cap, mid-cap, and small-cap segments, as well as growth, value, and income strategies. Managed by Capital Group, this fund is known for its low turnover, moderate expense ratio, and a glide path that continues to evolve for approximately 30 years after the target date, providing ongoing management to address participants’ changing needs in retirement. The American Funds 2040 Target Date Retirement Fund Class R-4 serves as a comprehensive, professionally managed solution for long-term retirement savers seeking diversification and ongoing risk management tailored to their anticipated retirement timeline.
Fund Family Capital Group
Category Target-Date 2040
Performance Rating High
Risk Rating Below Average
Stock Exchange Nasdaq
Ticker Symbol RDGTX
Share Class Class R-4
Index S&P Target Date 2040 TR
RDGTX had a total return of 12.70% in the past year, including dividends. Since the fund's
inception, the average annual return has been 8.28%.
