AGTHX
GROWTH FUND OF AMERICA CLASS A
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What should I do about my portfolio moving forward?
Best aggressive investment strategy/fund type (long-time horizon)
Investing in (ABNDX) better than riskier/ municipal bonds?
I own AGTHX, PRSCX, TRBCX in my taxable brokerage account. Not sure if I should sell
What individual stocks/ETFs would you consider buying right now if you were in your 20s?
Are mutual funds a thing of the past?
Should I keep my account or roll it into Vanguard?
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Decent setup for 32 - you're definitely gonna outpace most people with that tech tilt while you're young enough to weather the volatility FSENX is solid for energy exposure but just heads up it can be a wild ride. Maybe consider some international developed markets (FTIHX) instead of or alongside more sector plays? Tech dominance might not last forever and having some geographic diversification could smooth things out without killing your growth potential That AGTHX legacy holding is probably fine to keep as dead weight for now unless the fees are brutal
AGTHX characteristics: benchmarks against SP500 but weights it a little differently. Looking at the last 5 years between VOO it correlates at about 0.96 (the 2 funds moves very closely in sync). So the question is “what’s the value of holding this verses a truly indexed funds?” I honestly don’t see any being honest….i mean I do have a tendency to spot on American funds…I think they are a relic of the past and tbh can’t get out of it. High fees while operating almost like index funds. - fees is where it kills your investment. AF charges 0.059% mgmt fee with a 0.024% 12b-1 fee. With everything else added in totals out to 0.059%. Then there’s that front load of 5.75% as a transaction fee. - so that eats into your returns for 20 years, just a basic calculation against the benchmark - gross return with out fees index vs fund: 11% vs 9.8%. Fund made $1,575 less per $1000 invested 20 years ago. - now with fees added in: fund made $2333 less per $1000 invested 20 years ago. - in percentage terms: you made 30% less than benchmark. 24% due to manager decisions and 9% due to higher fees (math don’t add up because the total also assumes index funds had some fees in too). So what I think could be better? If AGTHX just index SP500 with some special tilt which doesn’t really add value, then probably should just go with low fees index funds/ETFs.
AGTHX started in 73, it’s beaten the sp500 for most time periods , the last 10-15 years it’s been toe step essentially . It’s an active mutual fund that in the past was more mid cap heavy , but for a long while is squarely large cap growth . However , the fund managers still stick to having mid cap tilts, so when you compare the fund to large cap growth like VUG SPYG SCHG their median market caps are around 750 Billion and their top ten holdings are 60% percent of the fund , where as AGTHX is about 300 B market cap and 37% top ten. So it’s Morningstar 9 box style places it in large cap growth but it ends up behaving more like the sp500. You can plug these funds into portfolio visualizer and see their fund correlation, AGTHX is more related to Sp500 than VUG. All in all, its ER is pricey unless you have access to R class shares, but it has historically paid off. You most likely won’t severely underperform or over perform the sp500 in the long run .
Okay, assume it is wrong (I disagree, but we will take your position). Last year AGTHX paid a dividend of $0.31. It has paid similar dividends going back to 2015 when it paid $0.27. Add all those up, call it $3.50 and add it to the starting price of AGTHX 10 years ago and it doesn’t make much of a dent in the performance against VOO. And if you are going to assume AGTHX on Yahoo does not have dividends reinvested then we should add back VOO’s dividends since 2015? In every year since 2015 VOO has paid at least $4 per share in dividends (the share price is much higher, so as a percentage return is only about 2%). AGTHX has a max sales load of 5% and other annual fees. The total fees on VOO are now less than 0.05% (or, put another way, AGTHX has fees that are 100x the fees on VOO. Over a period of 10 years that explains almost the difference in return between the two funds. The American Funds are sold through a large network of brokers and advisors and for some people they need help with their investments. That help costs money. Nothing wrong about that, people have to earn a living. But the investment returns of those high load funds will never approach the returns of the no load funds over time. With a fee structure of up to 100x the no load funds it’s easy to see why.
https://finance.yahoo.com/chart/AGTHX#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
I think your understanding is wrong, then. The share price of VOO has outperformed the share price of AGTHX 2:1 over the past 5 years. If you backtest the returns anywhere else, you find that the total returns for both funds over the past 5 years are pretty close.
Fees have to be a consideration as well. VOO you’re only paying 0.03% a year while AGTHX shows on Schwab as a front load fund and even the C class fund which is no load has a 1.36% net expense ratio.
If you want to look at the total returns of the funds, you need to account for dividends and capital gains distributions. The share price doesn't show that. AGTHX pays out a large capital gains distribution plus a dividend every year (about 8-9% total). VOO has a dividend yield of about 1.2%.
This is what i mean. Someone else posted that the 5 year return for VOO is 2:1 of AGTHX according to yahoo financd
CAGR according to https://testfol.io/ : Fund | 5 year | 10 year | All time ---|---|----|---- VOO | 15.83% | 13.62% | 14.55% AGTHX | 14.75% | 14.22% | 14.77%
I tried this method on a few sites and kept getting different results, no idea why 😂😅 but thank you. I don’t think yahoo had AGTHX listed, but Hopefully this is the consistent answer.
maybe you can get the shares transferred directly then. Sounds like it's worth putting in the effort, for better service and lower fees. Hey that front-end fee load for AGTHX is pretty bad. I hope you decide on a cheaper method to invest.
thats helpful, thanks trying to understand more about redemption only and load fees, pls correct me if i'm wrong: [https://fundresearch.fidelity.com/mutual-funds/fees-and-prices/399874106](https://fundresearch.fidelity.com/mutual-funds/fees-and-prices/399874106) in my case, I'm not interested in purchasing more AGTHX fund, i'll only be selling. (main reason i want to leave Capital Group/AF is I've tried adding an external bank account for almost 2 months now and they continue to reject every form i send them). So, redemption only is not a problem is my case, correct? I do see a Load schedule in fidelity. It only shows Front-End Load 3-5%. Def don't want to pay any of that. From what i read, Front-Eng Load is NOT applied to the transferred fund, only if I purchase ADDITIONAL shares, is that correct. Based on the above, if I only want to gradually sell this fund post transfer, I'm OK with redemption only and I won't be hit is any fees to sell?
I can see this AGTHX fund available for purchase on Fidelity. I also see it on Schwab now (just not on Thinkorswim). So why would it need to be liquidated? I don't want a taxable event, the point of the transfer (in additon to getting off that awful platform) would be not to pay taxes. The 2nd thing is, I don't see Capital Group (or American Funds) as a source of transfer on Robinhood, thats what i was trying to confirm (i reactivated an old account to see). It wants a CTR number of the broker if its not listed and Capital Group does not have it listed anywhere I can see. Their process for transfer requires submission of a bunch of forms, calls between brokers, and a bunch of other nonsense which is the reason i want off that platform. On the other hand, I see Fidelity does have American Fund as a source for transfer.
|Description|[VIGAX](https://client.schwab.com/app/research/#/symbol/VIGAX)|[AGTHX](https://client.schwab.com/app/research/#/symbol/AGTHX)|[SCHG ](https://client.schwab.com/app/research/#/symbol/SCHG)**:** NYSE Arca|[VTI ](https://client.schwab.com/app/research/#/symbol/VTI)**:** NYSE Arca|[GFACX](https://client.schwab.com/app/research/#/symbol/GFACX)| |:-|:-|:-|:-|:-|:-| |Net Expense Ratio|0.05%|0.61%|0.04%|0.03%|1.36%| |Gross ExpenseRatio|0.05%|0.61%|0.04%|0.03%|1.36%| |Schwab Mutual Fund OneSource®|No Load, Transaction Fee|Load, No Transaction Fee|N/A|N/A|Load, No Transaction Fee|
GFACX and AGTHX are actively managed funds. If you switch to other actively managed funds, the question is, just because the expense ratio is lower, does that mean their total performance will be better? And the answer is, there's no way to know.
AGTHX is a hell of a fund, very strong performance even after the higher fees.
Whether it is a safe decision depends on your appetite for volatility. If volatility upsets toy, then there are investments that reflect your level of risk tolerance. You will sacrifice gains for peace of mind. If you are 31 and don’t need the money for decades, then you are playing the game poorly. Markets go up and down. A 10% correction, for whatever reason, is normal. Bailing on funds that you have gains in only leads to a large tax bill. That’s a self-inflicted bear market. Investing: creating a plan, sticking to it, and rising out market volatility. Trading: actively buying and selling positions to capture market moves. Strategic asset allocation: if is a combination of the two above. You are always say 80% invested in an asset allocation model. The other 20% you move in/out based on market metrics. This is certainly a strategy, but most people here will buy high and sell low. You seem to be letting your emotions call the shots. I’d suggest stepping back from the news and focusing on whether your plan is sound and risk appropriate. I’d also suggest that you understand what each of type investments are designed to do. AMCPX is a large cap growth fund. AGTHX is also a large cap growth fund. ANWPX is a global large cap fund. AWSHX is a large blend. That’s four large cap funds. That’s not diversification. That’s what I’d be upset about.
You are paying a 0.61% expense ratio. [https://www.sec.gov/investor/alerts/ib\_fees\_expenses.pdf](https://www.sec.gov/investor/alerts/ib_fees_expenses.pdf) AGTHX is an actively managed fund, research the difference between actively managed funds and passively managed funds (index funds). Research the long term performance differences between actively managed funds and index funds. Do you have low cost index funds available? If not: [https://www.whitecoatinvestor.com/how-to-pick-an-actively-managed-mutual-fund/](https://www.whitecoatinvestor.com/how-to-pick-an-actively-managed-mutual-fund/) 401k fund selection guide: [https://www.reddit.com/r/personalfinance/wiki/401k\_funds/](https://www.reddit.com/r/personalfinance/wiki/401k_funds/)
We are a family that is strongly invested in American Funds. I have been in this family of funds for over 30 years. AGTHX carries more risk but has performed well. I am late to this conversation but thought I would put in my two cents.
Can someone please tell me what the sources for these numbers is? When I compare the growth shown on testfolio to what Yahoo Finance lists for AGTHX, I get wildly different numbers. SP500 TR numbers look right. The first number is what is shown by the testfolio value for AGTHX, the second number is what Yahoo Finance lists as the total return for that year. The testfolio % difference is the difference in value from start to EOY divided by the starting value for that year- maybe that's incorrect? Also, I did turn off "adjust for inflation" so these are the nominal values. 85- 16.92% vs 27.05% 86- 13.8% vs 16.15% 87- -1.2% vs 8% 88- 10.8% vs 18.52% This goes on like this- the difference is anywhere from 4-15%- until 96 when the numbers start to be reasonably close. I'm not assuming anything. If I did it wrong, what am I missing?
Many years ago, when I had less of a clue than I do now, I bought these mutual funds from LPL: * ABALX: Maximum front-end sales=5.75% / Net expense ratio=0.57% * AGTHX: 5.75% / 0.63% * CWGIX: 5.75% / 0.75% * NEWFX: 5.75% / 0.99% I recently transferred them to my brand new Fidelity non-retirement account. My question is, should I sell them, taking the capital gains hit, then put the money into my lower cost ETF portfolio? Or should I just hold on to them as is? Some details: * I plan to retire in 10 years. * I've maxed out my retirement accounts. * I'll have a pretty decent pension. * I have no debt. * I will likely not touch these funds for at least 10 years, probably more.
AGTHX Front load 5.75% She loses almost 6% of her money to fees right away. This is not a friend.
* How old are you? What country do you live in? **53. USA**. * What are your objectives with this money? (Buy a house? Retirement savings?) **Retirement.** * What is your time horizon? **10-15 years.** * What is your risk tolerance? **Moderate risk.** * What are your current holdings? **Maxed out 403b and Roth 403b. I'll also have a pension that pays 70% of my salary. So this is on top of all that.** * Any big debts (include interest rate) or expenses? **No other debt. Mortgage will be paid off in 5 years.** I invested $50,000 into mutual funds about 15 years ago when I had very little knowledge about the subject. It's now $150,000, but some newfound knowledge has me questioning whether I should switch up the funds, because they may be too expensive. They are: * ABALX: Maximum front-end sales=5.75% / Net expense ratio=0.57% * AGTHX: 5.75% / 0.63% * CWGIX: 5.75% / 0.75% * NEWFX: 5.75% / 0.99% I'm in the middle of moving the funds from LPL to my personal standard Fidelity account. Once there, would it be worth the tax hit to sell them and purchase cheaper funds such as VOO/VTI? Also, I have no records as to how much I put into the funds in the first place. I know the first chunk was $50,000. And I vaguely remember adding another $10,000 at some point. How would I go about obtaining such old records? How would I determine the taxable amount if I sold everything?
Great breakdown VOO does seem like the smarter choice. What do you think her reasons might be for preferring AGTHX
They have outperformed the SP500. The only problem is you have to go back 42 years and let it ride. I did a back test from 2007 till 2017, AGTHX had a 53% shortfall against VOO. Back test it 1,3,5, and 10 years.
It is actually in recent months AGTHX is doing better than **SWPPX** **-0.02%** not over longer time. It comprises of less 316 companies. American funds tend to be more pricy.
AGTHX is not an index fund so not really apples to apples comparison. There is nothing really wrong with American Funds actively managed funds. Are they the best funds if you had a choice, no. There are actively managed funds that do beat the index funds with lower fee from other fund families. American Funds are popular with investment advisors because it is a fund family they can become affiliated with to resell. They do have some solid offerings. My wife's employer switched to them a few years ago, which is a massive improvement over their previous 401k custodian. Depending on your risk tolerance and objectives index funds are not the end all of investments.
So one issue which I know he is going to present… when You plug in SPY vs AGTHX over the last 20 years AGTHX outperforms….
The "advisor" is either delusional or lying about AGTHX consistently beating the S&P500 - after fees. They are not a friend. They are grifting sales slime. Is there going to be an Assets Under Management fee on the account. 1%-1.5% is typical. 1% on $3M would be $30,000 a year. That's a lot to pay to grifting sales slime. If MIL doesn't know how to manage several mil they may need an advisor, but not this one. Vanguard PAS at 0.3% AUM would probably take care of it. For several mil the major brokers will provide you a personal advisor/rep for no or low cost. Be careful about getting in the middle of this and advising. Stock prices can easily have times, sometimes years, of declines. You could get (irrationally) blamed for them losing money.
Yeah. I would just let her go for AGTHX. Every time the market is down, let it be his fault, and not yours.
>Real-World Example >Many companies offer mutual funds with varying loads to meet the investing style of any investor. American Funds Growth Fund of America (AGTHX) is an example of a mutual fund that carries a front-end load. >To illustrate how the load works let's say an investor invests $10,000 in the AGTHX fund. They will pay a front-end load of 5.75%, or $575. The remaining $9,425 is used to purchase shares of the mutual fund at the current share [net asset value](https://www.investopedia.com/terms/n/nav.asp) (NAV) price.3 >Capital Group. “[The Growth Fund of America Summary Prospectus](https://www.capitalgroup.com/individual/pdf/shareholder/mfgeipx-005_gfap.pdf).” Pages 1-2. [https://www.investopedia.com/terms/f/front-endload.asp](https://www.investopedia.com/terms/f/front-endload.asp) My understanding of mutual fund front load expense is perfectly accurate. My awareness of American Funds' fee waiver was lacking.
exactly - as this is true. but what matters is a 5 or 10 year performance comparison, and in this regard it seems this AGTHX gets smoked.
The privately held LA based company "Capital Group" owns American Funds. So there are fees and profit motives for sure, and Capital Group usually caters to institutional buyers. Over the last 10 years the AGTHX fund returned about 70%, but the SPY would have returned 190%. In the early days of AGTHX, they were nimble and always outperformed the S+P, but now they have about $150 billion in assets, so best case for them is to match the S+P - the same thing happened to the Magellan fund years ago. In other words, AGTHX is so big (diverse), they are essentially the S+P. As for me, 1) i like ETFs because of the same day liquidity, 2) i like to spread the money around - at least 5 to 10 funds (there are lots of youtube videos that speak to a 5 fund strategy, or a 9 fund strategy etc etc), 3) i might do a mutual fund if i like the sector. in my view the advice to toss it all into the AGTHX is not prudent. Maybe to save face, she allocates something like 5% to the fund and seeks lower cost options from Vanguard or cost effective ETFs.
The advisor is likely referring to AGTHX vs the SP500 since inception (in the 1970s or 1980s I believe). The advisor isn’t lying, the fund has done very well in the past… but in the post-2008 bull run it hasn’t performed as well as some of its peers or relevant indexes.
Okay but is he actually showing her data that backs up that statement? Here is AGTHX fund performance: https://www.capitalgroup.com/individual/investments/fund/agthx Here is VOO fund performance: https://investor.vanguard.com/investment-products/etfs/profile/voo VOO performance = bigger numbers = that guy just straight up lying. Show her this data, tell her to never listen to that guy again. If she still doesnt listen, then well she is probably romantically involved w the dude or something
This is not true. At over 1m there is no front load, but the advisor still does get a kick back around ~1%. I Wouldn’t invest in class A shares. However OP, ask the advisor about F-2 or F-3. No front load, which you wouldn’t need to worry about anyways, but also much lower expense ratio. It is bit of a unique fund in the sense that it’s large cap growth but still holds some mid cap and international. I hold some AGTHX however if just hold a simple large blend/small/mid cap/ intl portfolio. With a few million you should just focus on steady growth and preservation, no need to go after big performance.
This is something that should be incredibly easy for any adult to determine themselves. I would recommend VOO over SPY as its expense ratios is slightly lower while holding the same assets. All this data is from the website for each respective fund. Expense ratios (maintenance cost of using the fund): VOO - .03% AGTHX- .63% Returns: VOO: 1 yr = 27.10% / 5 yr = 15.87% / 10 yr = 12.94% AGTHX: 1 yr = 22.59% / 5 yr = 14.29% / 10 yr = 12.24% From this its clear to see that the growth expectations are decently similar between the two, with VOO having a slight edge. VOO has a much lower expense ratio though. Assuming $2.5 million dollars, VOO would cost $750 per year and AGTHX would cost $15,750 per year. Its clear that VOO is the winner. Show her this math and if she still doesnt agree then she has other reasons that are not monetary for trusting this “family friend”.
I'm seeing 0.63% expense ratio for AGTHX, which seems egregiously high, such that I would look no further into it, definitively discarding this option. If she can't be made to understand how bad this expense ratio is, I'm not sure what hope there is.
Or that even compared to *other growth funds*, AGTHX sucks relative to a common growth ETF like SCHG: https://testfol.io/?d=eJytjz1PxDAMhv%2BL5wxlYciGQNyNSDCA0KkyjVsMPudwTE%2Bo6n8nR%2Fk4IbHhKZbj53k9wSD5AeUKDbcF4gTF0bxN6AQRIABpOuqW6YgC8aSpFQDTU8vaCzpnhej2SgE6LI%2B95D3E5qdpe6OXirkjNHmrMMsirEO7Z02Hv6fNHGCXzfssnGua%2BwkUtwf12epmfVtXWEcqfsEjpxqsfPmM6g2oHV3%2BUjh3z2QLankfwXZkHal%2FnDJvAiTDoSaew7f2%2Bny9%2Bi%2FrJ%2Bsv6WZ%2BB333hA4%3D
Adjusting for the sales load AGTHX does not beat the S&P over the last 1, 3, 5 or 10 year time frames. American funds does a have maybe a couple funds that outperformed the S&P over a handful of years, and AGTHX has outperformed the S&P over some recent time frames. The first chart on this page shows the load adjusted performance https://fundresearch.fidelity.com/mutual-funds/performance-and-risk/399874106
Or that VTI would outperform AGTHX https://testfol.io/?d=eJytjz9Pw0AMxb9K5fmGsDDchoT4MyAhCAiEqsjknPSo6ys%2BkwpF%2Be5ciYCKgQlPfrL93s8j9Jyeka9RcZPBj5AN1ZqARuABHJCEAzVPB2TwR1UpBxhemigdo8Uk4E3fyEGLedVx2oGvfkTTKb0Wm0dC5fdipok5St%2FsooT97nE1OdgmtS5xTIXmaQTBzT765Ly%2BeCgnUQbKdhqHGApY%2FspTKj%2BgtHT2K8Jiuyadreb%2BwGxL2pLY5yvT0kFQ7Avx5L5j62TIi7vbxRXqmuy%2FAO7ry%2FrmD4Dl9AEG%2BIit
32m here.. started maxing a Roth IRA at 21 at my first job with Edward Jones. Between all my retirement accounts have about 315k. 140k in that Roth. I switched to vanguard after two years but my biggest regret is having the bulk of my money in the Roth being allocated to AGTHX instead of just SPY or QQQ (Edward jones sucks and would never recommend them to anyone)
A handful of funds spread across hundreds of companies. Funds such as: - AGTHX [here's a list of the holdings, feel free to figure which of the 323 holdings are in the S&P500.](https://www.capitalgroup.com/individual/investments/quarterlyholdings/agthx) - ANWPX [274 holdings, many are in the S&P500.](https://www.capitalgroup.com/individual/investments/quarterlyholdings/anwpx) - AWSHX [181 holdings... lots in S&P500](https://www.capitalgroup.com/individual/investments/quarterlyholdings/awshx) - NEWFX [583 holdings.... many in the S&P500](https://www.capitalgroup.com/individual/investments/quarterlyholdings/newfx) Then the Small CAP, Bonds Class A, & Intermediate Bonds are obviously not S&P500. that's part of the mix.
The S&P 500 has dropped 10% over short periods of time about every other year. Markets do that. What is important is your habits when that happens. Over time, the prices will revert to a mean so long-term investing deals with the volatility by understanding it's normal and staying invested. But, diversity is important around that. Broad market indexes vs. individual stocks. Individual stocks will see more volatility. I bet many of the funds you list have a lot of Microsoft stock in them already. AGTHX is 6% Microsoft: [https://www.morningstar.com/funds/xnas/agthx/quote](https://www.morningstar.com/funds/xnas/agthx/quote)
American Fees is OK-ish, if you can avoid the front-load fee. Their new ETFs are pretty good, relatively speaking. The best investing plan is whatever someone can commit to. high fees are not optimal, but I know people who'd do zero investing if not for their advisor and front-loaded shares. >American funds and EJ advisor has really eaten into my wives portfolio and I can’t get her mother to drop him. why is your MiL managing your wife's portfolio? did I read that correctly? that's a bigger problem than investing in AGTHX or AIVSX with a front-load fee.
> I’m just concerned about the possibility of it actually tanking due to a potentially larger recession and wanted to seek opinions from those who understand the market better than I do. You probably should speak to a financial advisor. If you're worried more about loss prevention than maximum gain the strategy, you potentially want to throw in some bonds in there. AGTHX is a stocks-only mutual fund so the risk profile is technically considered "high".
If you invested $800,000 into AGTHX 15 years ago it would have grown to $6,390,000, slightly outperforming the S&P 500 by $200,000. I'd say you will be fine in the long run stop thinking about it and let it do its thing. [https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=1e5lRkQOqVqh94fEVnoOCd](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=1e5lRkQOqVqh94fEVnoOCd)
Question about Roth ira on Capital group American funds I am currently investing in Voo and another account Roth IRA with American Funds The Growth Fund of America class A (AGTHX). I was wondering if it is a good investment or if I should put my Roth IRA money in Vanguard instead, and if so, which funds should I put it in?
Compare AGTHX to something like VUG.
Do you know of a fund/ETF that gives better returns with low expenses than AGTHX?
I've held American Funds' Growth Fund of America (AGTHX) for quite few years now. Every year I tell myself that I should sell and look elsewhere for an equivalent fund or ETF that gives similar or better returns -- without the ridiculous fees being charged. I mean, they have a 12b-1 fee, a sales fee, and a high expense ratio! All told more than 1.6 percent! But at the end of the year, when I see the fund payout, I always put my decision on the back burner (battered wife syndrome?). Anyone have any thoughts or recommendations/suggestions on comparable funds/ETFs to look at where there's a similar or better returns/payout?
AIVSX is consistent. my wife just reshuffled hers this past year. AIVSX and AGTHX were the 2 she migrated into. those were the ones the financial advisor firm that does her companies 401k recommended.
I'm curious what UBS charge for the "management" on top of the AGTHX MER of 0.63% and what utility you might get for it? Oh. And switch to low cost ETF tracking the S&P500 or total market. You'll get better returns and pay less in fees.
AGTHX performance is acceptable for an older person but not at 22 years old. You are missing performance and gains. I would move to VOO+QQQ. I will also ask UBS why they choose a mutual fund not keeping up with the S&P500 benchmark and offering only 50% of the S&P500 gains over the past 10 years. It’s a red flag.
AGTHX has grown by 48.5% over the last five years. The S&P 500 index and, presumably, it's tracking index funds, have grown by 92.2%. For this mediocre performance, you pay very high loads and fees. I'd move.
AGTHX is essentially just an SPX tracker, so you can easily shift the risk to a sp500 tracker (SPY, voo, whatever) for lower fees. the downside is there is an already paid 5% front load fee, and a 1% back load fee, so you'll take the hit on the sale, but might as well, since it underperforms the spx essentially by the fees.
Roth IRA with a financial advisor. I have the following investments but want to move to some with lower expense ratios Cash $4978.7 AGTHX $1569 ANWPX $785.38 VEIPX $5,367.6 AWSHX $1587.6 Any thoughts/advice? Would like it to be a little simpler and maybe just track S&P 500, or just same mix but with lower expense ratios
Capital Group finally reducing their MSFT holdings in AGTHX because too many people bitched about the capital gains distributions?
$PARA 13F already published in the top 10 holders: Charles Schwab IM+15% Contrarius IM +12% AGTHX 0% SCHD Schwab US dividend ETF+6% Consolidated Press new 6.2 million shares FXAIX Fidelity +3%
LMAO I literally said the last 15 years. not a random 20 year period from 3 years ago. hell if you DCA'ed the last 20 years not even AGTHX has outperformed. "the patriots haven't won any of the last 4 superbowls" "WRONG THEY WON IT 2019, 2017, and 2015"
> for the past 15 years not a single American fund has beaten the sp500. not accurate. simply wrong. AGTHX beat the S&P 500 from 1985 to 2023, almost 40 years. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=6ygdZoriPdGnTt1IMe9vGA AGTHX also beat the S&P 500 from 2000-2020: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=2000&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=VFINX&allocation1_1=100&symbol2=AGTHX&allocation2_2=100 AIVSX beat the S&P 500 from 2000 to 2020: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=2000&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=VFINX&allocation1_1=100&symbol2=AIVSX&allocation2_2=100 the S&P 500 is not the benchmark for every fund in the universe. e.g., the S&P 500 is not a benchmark for an international fund, global fund, or US fund for low-volatility (AMMFX) >not even realizing the underperformance of the past few decades. but they *haven't* underperformed the last few decades, and you clearly haven't even looked up the data.
>AGTHX For example, for the S&P 500, this calculator shows the difference between "average rate of return", which is what mutual funds quote, and the CARG. However, mutual funds only report their average rates of return because they are always higher than the CAGR. For example, if a fund went down 20% in year one and then went up 20% in year two, a mutual fund would report that average rate of return over that two year period as zero. However, you would have lost money because if something goes down 20% it must go up 25% to break even.
Any help on this question would be appreciated. Mutual funds always report the average annual returns for a fund. For example, the 5 year or 10 year average annual return, but these are not the true compounded annual growth rate of an investment, which would be lower. Plus, they usually don't include any loads the fund may charge. Is the a place one could find the true compounded annual growth rate of a mutual fund (Just for an example, let's use AGTHX) and have that CAGR take into account all expenses, including loads? If I was to look at a 10 year chart and take the price 10 years ago and the price 10 years later and calculate the CAGR based on those two figures, would I be missing key information, like for example reinvested dividends and so on? I just want to be able to find the real CAGR of an investment rather than the inflated average returns they give on their site or even places like Yahoo finance. Any help would be appreciated.
I have recently switched from Baird to Charles Schwab due to Baird's insanely high fees and all of the high cost mutual funds my advisor has me invested in (think heavy on AGTHX, PRUFX, etc). I was comfortable with being hands off until I realized how much money I was losing. I am fine with risk and would like to set it and forget it but need a little direction on what I should switch to rather than the fee-heavy mutual funds my portfolio is steeped with. He also had me invested in a ton of bonds even though I've been up front with how comfortable I am with risk and don't plan on retiring for 15 to 20 years. Now that I have control over my portfolio I would appreciate recommendations on what low cost index funds to replace the mutual funds with. Any suggestions appreciated!
I have a 529 plan with American funds containing AGTHX , AMCAP, & ANCFX . I haven't been to happy with AMCAP over the years . Any thoughts on reallocating AMCAP into the other two funds ? Is there another American fund I should look at ? Or should I just ride it out ?
You are close to having lost to inflation with that mix for the past five years. AGTHX is an actual loser over that time span.
AGTHX, TRBCX. Avg return over life of the fund.
Is it a good time to get out of this a mutual fund? I have approx. $45K in a mutual fund (AGTHX) that I started contributing to about 20 years ago when I was in high school. It was set up through my dad's FA, and I made monthly $100 contributions to it up until a few years ago once I understood there were better places to put my money. I've moved most of my investing to a robo-advisor using low-cost index funds, but held this position because it was doing well and frankly it was so large (by my count) that I was hesitant to touch it. But in reality it has underperformed the market, and the annual distributions are annoying for taxes. So I know its something I'll want to get out of eventually, but the significant capital gains were always a deterrent, until now... At present, I'm only up approx. $7K - all of which is long term except for approx $300. Additionally, I got married this year and my spouse is currently in grad school, so (hopefully) this will be our annual lowest income for some time. So I'm considering selling all and moving the funds into my kobo-account. The only drawback is I'm in CA where there is also an effective capital gains tax of approx 8%. We don't plan to live in CA long term, but I'm still thinking the higher tax rate in the near term is better than letting these funds continue to sit in this underperforming fund. So, is it a good time to make this switch? TL;DR: Should I get out of a mutual fund position while the market is down and my capital gains are lower, in favor of lower-cost alternatives? THANKS!