I got a message from Morningstar that they are dropping the rating of this fund to 3 stars. A couple of months ago, my financial "advisor", who made plenty of money from the kickbacks he gets from me buying this fund every month suggests I sell out and let him manage my money in ETF funds for 1.5% fees. Sooo, what are current opinions on either of these? Surely the loads and fees aren't worth it for a 3 star fund??? Or are they? Any suggestions of other funds to invest in?
I am a CPA/registered rep who frequently recommends American Funds to my clients, but I am now shying away from recommending this particular fund because of it's sheer size. It used to be an excellent performer, but because it has gotten so big, it's limited to mega-cap holdings, and it has so many holdings that it's bound to be like an index fund, ie. an average performer. Unless you're "married" to this fund, there are probably better choices elsewhere.
Please do not construe this as investment advice, because every person's situation is unique, and the recommendations should be tailored to them. You should consult with your tax and financial advisors before making any investment decisions.