The investment seeks growth of capital... Show more
AGTHX is not a company stock and is not an exchange-traded fund (ETF). It is the Class A share class of The Growth Fund of America, one of the largest and longest-running actively managed growth mutual funds in the United States. A mutual fund is a pooled investment vehicle that buys a portfolio of securities and prices its shares once a day at its net asset value (NAV), the value of the fund's assets minus its liabilities divided by shares outstanding — unlike an ETF, which trades intraday on an exchange. The fund is part of the American Funds family, managed by Capital Research and Management Company, a subsidiary of Capital Group.
Investors follow AGTHX because it offers a diversified, professionally managed way to gain exposure to large U.S. growth companies through a strategy that has been operating for decades.
Investment objective. The Growth Fund of America seeks growth of capital, meaning long-term price appreciation, primarily by investing in common stocks of companies the managers believe offer superior opportunities for capital growth.
Management approach. The fund is actively managed rather than tied to a passive index. Its defining feature is Capital Group's "multiple portfolio manager system," in which the portfolio is divided into segments managed independently by individual portfolio managers, each applying their own judgment within the fund's broad growth mandate.
Issuer and history. The fund is issued by American Funds, one of the oldest and largest mutual fund organizations in the U.S., with the fund's lineage dating to the late 1950s; the Class A shares trading as AGTHX have been offered since 1973. Morningstar classifies the fund in the Large Growth category.
Portfolio holdings. The fund typically holds hundreds of stocks — roughly 300 companies at recent fiscal year-end — rather than a concentrated basket. Its largest holdings have historically been large-cap technology and communication leaders. Recent top holdings have included NVDA (NVIDIA), AVGO (Broadcom), MSFT (Microsoft), META (Meta Platforms), AMZN (Amazon.com), LLY (Eli Lilly), GOOGL (Alphabet), TSLA (Tesla) and MU (Micron Technology).
Sector and asset allocation. The fund's sector exposure is weighted toward information technology, which has accounted for roughly 40% of equity assets in recent periods, followed by consumer discretionary, communication services, health care and industrials. The portfolio is predominantly U.S. equities, with a smaller allocation to non-U.S. stocks and a modest cash position.
Fees. AGTHX has a net expense ratio of about 0.59% and a 5.75% maximum front-end sales charge (load), which is deducted from the initial investment; it also carries a 12b-1 distribution fee. Minimum initial investments are modest for a Class A fund, typically $250 for standard accounts.
AGTHX attracts attention as a diversified core growth holding. Its broad mandate — investing across market capitalizations, industries and geographies rather than a narrow theme — provides exposure to some of the world's largest, most established growth companies alongside smaller, faster-growing businesses. The multi-manager system is designed to reduce reliance on any single stock picker, while Capital Group's deep research resources and long investment horizon support the fund's company-by-company, fundamental approach.
For investors, the fund's role is typically as a long-term, growth-oriented component of a diversified portfolio, offering professional management and broad large-cap growth exposure in a single vehicle. Its long operating history and scale also make it one of the most widely held actively managed funds in the industry.
As a large-cap growth fund, AGTHX is sensitive to equity market declines and to the volatility typical of growth stocks, which are often valued on expectations of future earnings and can fall sharply if those expectations are disappointed. The portfolio's meaningful technology weighting creates sector concentration risk, and the fund may lag the broader market or its benchmark during periods when growth investing is out of favor. Because it is actively managed, performance depends on the managers' stock selection, which can underperform an index. The Class A front-end load also reduces the amount actually invested and can meaningfully lower returns for shorter holding periods. Finally, the fund's limited non-U.S. exposure introduces currency and geopolitical risks.
Tickeron's AI Screener is an AI-powered stock and ETF discovery platform that helps traders and investors identify opportunities using technical indicators, fundamentals, volatility, trends, AI-generated signals, industries, price patterns and customizable filters. Users can efficiently screen thousands of stocks and ETFs to discover ideas that match their own investment strategies. Explore the AI Screener to refine your research with data-driven tools.
American Funds The Growth Fund of America (AGTHX) stands out for its combination of scale, longevity and a distinctive team-based, actively managed approach to large-cap growth investing. Rather than tracking an index or concentrating in a single theme, it offers broad, research-driven exposure to growth companies, making it a commonly used building block for long-term, growth-focused portfolios. As with any equity fund, its value will fluctuate, and its fees, sector tilt and active management are factors investors should weigh carefully.
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Category LargeGrowth