U.S. Treasuries comprise 10% of the fund's assets and act as the backbone of this side of the portfolio, which also includes corporate bonds, asset-backed and mortgage-backed securities, municipal bonds and foreign debt. That said, its good years have more than made up for the bad, and over the past decade on an annualized return basis, the fund beats the S&P 500. Strategies for dealing with market volatility, Ensure you have all the bases covered for your retirement. Investment calculator Though some of the rules have been relaxed over the years, the eligibility criteria are supposed to steer managers toward high-quality companies with solid balance sheets and that pay consistent, growing dividends. But the Capital System of dividing a fund's assets among multiple managers has helped the fund stay competitive. But in a 401(k) plan, the investment choices, especially with foreign-stock funds, are typically limited to an actively managed fund and an index fund. Kiplinger is part of Future plc, an international media group and leading digital publisher. Money thats been taxed wont be taxed again. Interestingly, the series gets relatively more aggressive in its retirement years. Client Accounts Login (for Financial Professionals) To access your American Funds client list and accounts, log in using your Vision ID and password. Published 27 April 23. Compare that with the typical 2010 target date fund, which has the same cash allocation, 9%, but just 35% in stock, 53% in bonds and 3% in other assets. (opens in new tab), The Best Vanguard Funds for 401(k) Retirement Savers. Making consistent investments over a number of years can be an effective strategy to accumulate wealth. 2022's Best Mutual Funds in 401(k) Retirement Plans. Although the target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met. Copyright 2023 Capital Group. Certainly, there are zippier foreign-stock funds available out there. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. On that, the verdict is clear: EuroPacific Growth beats Vanguard Total International Stock Index (VGTSX (opens in new tab)) over the past two, three, five and 10 years. But in recent years, when many of the market's high-flying stocks didn't pay dividends, AWSHX's guidelines have crimped overall returns. We look at the best American Funds in that group as well as some of the laggards. Learn more about AEPGX at the Capital Group provider site. By Kelli Kiemle, AIF 10,332 talking about this. Find content related to retirement planning, mutual fund basics, rollovers, retirement tools, our funds and information about Capital Group, home of American Funds. Log In | Capital Group For additional security, if you have not previously setup your one-time passcode, you will need to do so to verify account access. Investors should carefully consider investment objectives, risks, charges and expenses. Learn more about AGTHX at the Capital Group provider site. {{("logon." + authentication.errorMessage) | translate:authentication.errorMessageParams}} {{"logon.logonTitle" | translate}} The typical 2040 target-date fund, by contrast, holds 2% of its assets in cash, 75% in stocks, 13% in bonds and 10% in other diversified assets. An important required minimum distribution (RMD) deadline for some retirees is just around the corner. To get started, you will be prompted to enter your SSN and date of birth. ANCFX has seven managers, but a "bevy" of recent manager changes including three new portfolio managers named in 2020 has resulted in a drop in rating from Morningstar analyst Alec Lucas, to Silver from Gold. And it beats the MSCI EAFE index of stocks in foreign developed countries. U.S. stocks make up most of the portfolio. New York, What's more, during the recent bear market in early 2020, EuroPacific Growth fund held up better, with a 31.4% loss, compared with a 33.3% loss in Vanguard Total International Stock index fund. * Withdrawals from Roth accounts are tax- and penalty-free if the account was established at least five years before, and if the participant is at least 59 years old, disabled or deceased. Your retirement plan's website address is available from your company's human resources department. American Funds EuroPacific Growth is the biggest actively managed foreign stock fund in the country. Over the past 10 years, for instance, Washington Mutual investors have experienced 10% less volatility. But the Capital . 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.