A flexible approach to U.S. growth investing

A flexible investment approach
Investing in growth

The Growth Fund of America®

INCEPTION DATE
December 1, 1973

IMPLEMENTATION
Consider for a large-cap growth allocation

OBJECTIVE
Seeks to provide growth of capital

VEHICLE

The Growth Fund of America

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Everything moves in cycles, and the markets are no different. The overall uncertain economic environment and challenges of inflation are very real concerns. These volatile periods can showcase the advantages of The Growth Fund of America's flexibility, multiple manager perspectives and long-term horizon.

A FLEXIBLE APPROACH TO GROWTH

The fund’s portfolio managers and investment analysts seek to identify innovative companies across a broad range of sectors.

A HISTORY OF RESEARCH AND RESOURCES

The emphasis is on a flexible approach to growth investing, relying on in-depth bottom-up research to find companies with attractive growth opportunities mainly in the U.S. but with flexibility to look abroad. 

A FLEXIBLE APPROACH TO GROWTH

A flexible investment approach

For more than 49 years, The Growth Fund of America has invested across sectors and industries. Many of these investments are in the companies powering economic growth and developing new products and services. The strategy’s portfolio managers and analysts seek to identify companies with attractive prospects for appreciation, including those outside of traditional growth industries.

IDENTIFYING LONG-TERM LEADERS IN A BROAD RANGE OF SECTORS

Examples of top holdings in the portfolio*

Identifying long-term leaders in a broad range of sectors. Table shows examples of top holdings in the portfolio. Companies shown are among the top holdings by weight in The Growth Fund of America. Example 1: Mastercard — Sector: Information technology — Market cap (in millions of U.S. dollars): 346,418 2: Eli Lilly — Sector: Health care — Market cap (in millions of U.S. dollars): 326,351 3: General Electric — Sector: Industrials — Market cap (in millions of U.S. dollars): 104,231

Source: FactSet as  of March 31, 2023.

A HISTORY OF RESEARCH AND RESOURCES

Investing in growth

The world is in need of more data than ever, which means semiconductors are in high demand. Like oil fueled the industrial era, these miniature powerhouses fuel our increasingly connected lives. The Growth Fund of America’s portfolio managers seek to capitalize on this need with research focused on investing long term in the companies that make them. The fund has benefited from holdings in a range of analog and digital semiconductor companies, as well as semicap equipment manufacturers.

DEMAND FOR SEMIS IS POSITIONED TO GROW OVER THE NEXT FEW YEARS

Semiconductor industry revenue ($US billions)

The chart shows historical semiconductor industry revenue from 1980 through 2021 as well as revenue estimates for 2022 through 2030. The chart shows that revenue has been steadily rising for decades and reaching $200 billion in annual sales by 2000. The chart is divided into eras: the PC era through most of the '80s, the network era from the late '80s through the late '90s, the internet era from the late '90s through the late '00s, the mobile era from the late '00s through roughly 2016 and the data era that began in roughly 2016 and continues through the end of the chart. Estimates show that revenue is expected to sharply increase throughout the 2020s, estimated to culminate at $940 billion in annual revenue by 2030.

Sources: Capital Group, ASML, Statista, Inc., World Semiconductor Trade Statistics (WSTS). As of November 2022. 2022 estimate is provided by WSTS. 2025 and 2030 estimates are provided by ASML.

The Growth Fund of America

The Growth Fund of America is offered in various share classes designed for retirement plans, nonprofits, and other institutional and individual investors.

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Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
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*Companies shown are among the top 20 holdings by weight in The Growth Fund of America as of 3/31/23: (Microsoft, Alphabet, Meta Platforms, Amazon, Broadcom, Tesla Inc, UnitedHealth Group, Netflix, ASML, Mastercard Inc, General Electric, Regeneron Pharmaceuticals, Eli Lilly, Carrier Global, Thermo Fisher Scientific, Airbnb, TransDigm Group, NVIDIA, TSMC, D.R. Horton).