GWPAX – Invest for long-term growth!
I’ve found GWPAX to be a solid choice for long-term growth, thanks to its focus on high-potential stocks. While it can be volatile, it’s been a strong performer over time for my investment goals.
GWPAX is the ticker symbol for the American Funds Growth Portfolio A, a mutual fund focused on long-term capital growth by investing primarily in growth-oriented stocks. It aims to outperform the market over time, but it carries investment risks.
How does GWPAX work?
GWPAX works by pooling money from many investors to buy a diversified mix of growth-oriented stocks. The fund is managed by professionals who select and manage these investments to achieve long-term capital growth.
The fund’s performance depends on the value of the stocks it holds, and it aims to increase in value over time. Investors buy shares in the fund, and the money is used to invest in a range of growth stocks.
Top 7 Holdings of GWPAX:
| Symbol | Company | % Assets |
| RGAGX | American Funds Growth Fund of Amer R6 | 25.25% |
| RAFGX | American Funds AMCAP R6 | 15.10% |
| RNPGX | American Funds New Perspective R6 | 14.88% |
| RLLGX | American Funds SMALLCAP World R6 | 14.66% |
| RNGGX | American Funds New Economy R6 | 10.16% |
| RICGX | American Funds Invmt Co of Amer R6 | 10.05% |
| RFNGX | American Funds Fundamental Invs R6 | 9.94% |
Growth of $10,000 Over 10 Years:
| Metric | Index | GWPAX | Category |
| Growth | $26,962 | $26,873 | $21,381 |
Investment Flows and Total Return %:
| Year | Investment | Category | Index |
|---|---|---|---|
| 2014 | 5.83% | 5.50% | 7.97% |
| 2015 | 1.48% | -1.74% | -0.30% |
| 2016 | 7.53% | 8.45% | 9.72% |
| 2017 | 25.12% | 18.41% | 21.15% |
| 2018 | -6.62% | -9.27% | -6.74% |
| 2019 | 27.18% | 24.78% | 26.89% |
| 2020 | 25.33% | 15.41% | 17.26% |
| 2021 | 18.59% | 17.56% | 19.69% |
| 2022 | -26.89% | 18.18% | -17.49% |
| 2023 | 28.75% | 17.66% | 22.37% |
| YTD | 11.95% | — | — |
Additional Details:
- Investment Flows: -$192.68 Million (USD)
- Manager Change: Full / Partial
- Quartile Rank: —
- Percentile Rank: 32, 3, 18, 68, 90, 88, 77, 52, 93, 2, —
- Number of Investments in Category: 172, 181, 160, 186, 190, 176, 163, 189, 200, 186, —
- Category Name: XM
What are the risks associated with investing in GWPAX?
Investing in GWPAX comes with several risks. As a growth-focused fund, it mainly invests in stocks, which can go up and down in value a lot. The value of the investments can change due to overall economic conditions, interest rates, and political events. Growth stocks can be more volatile compared to more diversified or safer investments.
The fund might also perform worse than market benchmarks like the S&P 500. Additionally, because GWPAX invests in various sectors, problems in specific sectors, like technology, can negatively impact the fund’s value. It’s important to consider these risks and your own comfort level with risk before investing in GWPAX.
Portfolio Holdings of GWPAX:
Current Portfolio Date: June 30, 2024
| Category | Details |
| Equity Holdings | — |
| Bond Holdings | — |
| Other Holdings | — |
| % Assets in Top 8 Holdings | 100.0% |
Top 8 Holdings:
| Company | Assets | Value |
| American Funds Growth Fund of Amer R6 | 25.25% | $4.8 Billion |
| American Funds AMCAP R6 | 15.10% | $2.9 Billion |
| American Funds New Perspective R6 | 14.88% | $2.8 Billion |
| American Funds SMALLCAP World R6 | 14.66% | $2.8 Billion |
| American Funds New Economy R6 | 10.16% | $1.9 Billion |
| American Funds Invmt Co of Amer R6 | 10.05% | $1.9 Billion |
| American Funds Fundamental Invs R6 | 9.94% | $1.9 Billion |
| Cash and Other Assets Less Liabilities | -0.03% | $5.6 Billion |
What are the investment strategies of GWPAX?
The American Funds Growth Portfolio A (GWPAX) primarily focuses on long-term capital appreciation. The fund aims to achieve this by investing in a diversified portfolio of growth-oriented mutual funds that are part of the American Funds family.
These underlying funds typically invest in companies with strong potential for future growth, including a mix of large-cap, mid-cap, and small-cap stocks. The investment strategy emphasizes:
1. Diversification: Spreading investments across various sectors and geographic regions to manage risk.
2. Active Management: Relying on experienced fund managers to select individual securities believed to have the best growth prospects.
3. Fundamental Research: Utilizing deep, fundamental research to identify companies with strong growth potential.
4. Long-term Perspective: Focusing on companies that can deliver sustained growth over the long term, rather than short-term market fluctuations.
Sector Weightings of GWPAX:
| Sector | GWPAX |
| Technology | 26.79% |
| Industrials | 15.03% |
| Healthcare | 14.35% |
| Consumer Cyclical | 13.22% |
| Financial Services | 9.82% |
| Communication Services | 9.46% |
| Consumer Defensive | 4.07% |
| Basic Materials | 3.13% |
| Energy | 2.61% |
| Utilities | 0.84% |
| Real Estate | 0.69% |
What is the historical performance of GWPAX?
The historical performance of GWPAX varies based on the time frame considered. As a growth-oriented portfolio, it generally aims to outperform broad market indices like the S&P 500 over long periods.
Typically, the performance is evaluated over 1-year, 3-year, 5-year, and 10-year periods. You can find specific performance metrics from financial data providers or directly from American Funds’ reports. However, it’s important to note that past performance does not guarantee future results, and investors should also consider current market conditions when evaluating the fund.
How can I calculate the total expenses of investing in GWPAX?
To calculate the total expenses of investing in GWPAX, follow these steps:
1. Determine the Expense Ratio:
The expense ratio is an annual fee expressed as a percentage of your investment. For GWPAX, this information is typically provided by American Funds or on financial data websites.
2. Calculate Annual Fees:
Multiply your total investment amount by the expense ratio. For example, if you invest $10,000 and the expense ratio is 0.75%, your annual fees would be $10,000 0.0075 = $75.
3. Consider Front-End Load (if applicable):
If GWPAX has a front-end load (a fee paid when you purchase shares), include this in your total expenses. For instance, if the front-end load is 5.75%, on a $10,000 investment, the load would be $10,000 * 0.0575 = $575.
4. Add Other Fees (if any):
Check for any additional fees, such as account maintenance fees or purchase constraints. These might not be significant but should be considered for accuracy.
5. Total Expenses:
Add the annual fees, front-end load, and any other applicable fees to get the total expenses for the first year.
For example:
Investment amount: $10,000
Expense ratio: 0.75% = $75
Front-end load: 5.75% = $575
Other fees: $0 (assuming no additional fees)
Total Expenses in the first year = $75 (annual fees) + $575 (front-end load) = $650
FAQs:
1. What is a sales charge on a mutual fund?
A sales charge, also known as a load, is a fee paid when you buy or sell shares in a mutual fund. It can be a front-end load (charged when buying) or a back-end load (charged when selling).
2. Is GWPAX a good investment?
Whether GWPAX is a good investment depends on your financial goals, risk tolerance, and investment horizon. GWPAX is a growth-oriented mutual fund that aims to outperform the market over time, but like all investments, it carries risks. Review its past performance and consider seeking advice from a financial advisor.
3. Does Gwpax pay dividends?
Yes, GWPAX does pay dividends. Dividends are payments made to investors from the fund’s earnings, like money earned from stocks or bonds. How often and how much you get can change, so it’s best to check the latest updates from American Funds for current details.
4. Is Morningstar a good buy?
Whether Morningstar is a good buy depends on your investment goals and research. If you value their investment research and analysis, their services might be beneficial.
5. What are the breakpoints for GWPAX?
GWPAX typically has breakpoints at various investment levels, often starting at $50,000, $100,000, $250,000, and higher. The specific breakpoint levels and corresponding reduced sales charges can be confirmed by reviewing the fund’s prospectus or consulting with a financial advisor.
Conclusion:
GWPAX is a mutual fund designed to help your money grow over the long term by investing in stocks with strong growth potential. It aims to beat market averages but does carry some risks. Make sure it fits your financial goals and comfort with risk.
