American Funds Target Date 2060 Fund Overview and Details

The American Funds Target Date 2060 Fund is a type of retirement investment designed to help you save for your future.

This fund is a target date fund, which means it automatically adjusts its investment mix over time to become more conservative as the target date approaches.

The target date for this fund is 2060, meaning it's designed for investors who plan to retire around that time.

The American Funds 2060 Target Date Retirement Fund is a solid investment option for those looking to grow their retirement savings. It was launched on March 27, 2015.

The fund is part of the Capital Group Fund Group, a well-established and reputable investment management company.

The fund's shares are denominated in USD and are domiciled in the US, making it a great option for investors with a US-based portfolio.

The fund's manager is Joanna Jonsson, who brings valuable experience and expertise to the table.

The expense ratio of American Funds Target Date 2060 is 1.48%, which is 114% higher than its category average. This makes the fund's expense ratio grade a F.

The expense ratio measures how much of a fund's assets are used for administrative expenses and operating expenses. High annual expense ratios can reduce your rate of return, and excessive fees are difficult to overcome.

Here's a breakdown of the fund's operational fees:

The fund's high expense ratio is a significant consideration for investors.

The American Funds 2060 Trgt Date Retire R2 has an expense ratio of 1.48%, which is 114% higher than its category average.

High expense ratios can significantly reduce your rate of return, making it difficult to overcome excessive fees. This is especially true for actively managed funds, which often come with higher expense ratios than passive index management.

American Funds 2060 Trgt Date Retire R2 has a portfolio turnover rate of 5%, indicating that it holds its assets for around 0.2 years. This is significantly lower than the average portfolio turnover of 24% for the Target-Date 2060 category.

In January 2025, American Funds 2060 Trgt Date Retire R2 returned 3.7%, earning it a grade of A, as the Target-Date 2060 category had an average return of 3.3%.

Here's a breakdown of the fund's fees:

Note that the expense ratio is significantly higher than the category average, which could impact the fund's overall performance.

When evaluating the performance of an investment, it's essential to consider its trailing return ranking. This metric provides a snapshot of how the investment has performed over various time periods, relative to its peers.

The trailing return ranking for RDKTX is impressive, with a 1-year return of 18.5%. This is significantly lower than the category high of 65.2%, but still respectable.

In fact, RDKTX's 1-year return ranks 70.57% in its category. This suggests that while it's not the top performer, it's still holding its own against its peers.

Here's a breakdown of RDKTX's trailing return ranking over different time periods:

For example, over the 5-year period, RDKTX's return of 9.3% ranks 16.53% in its category.