Fund Evaluator:
American Funds U.S. Sm & Md Cp Eq R-2 (RMDEX)
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Best Performing in Mid-Cap Blend Over the Last Year
| 67.2% | Paradigm Select (PFSLX) |
| 39.8% | ICON Equity Investor (ISTAX) |
| 32.4% | Fidelity Advisor Mid Cap II Z (FZAMX) |
| 31.5% | Vanguard Strategic Equity Inv (VSEQX) |
| 29.8% | CRM All Cap Value Inv (CRMEX) |
Fund Details
American Funds U.S. Sm & Md Cp Eq R-2 Overview
American Funds U.S. Sm & Md Cp Eq R-2 (RMDEX) is an actively managed U.S. Equity Mid-Cap Blend fund. Capital Group launched the fund in 2024.
The investment seeks capital appreciation. Under normal market conditions, the fund invests at least 80% of its assets in common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) of small and mid-capitalization companies in the United States. The fund strives to maintain a fully invested portfolio. The fund is non-diversified.
About American Funds U.S. Sm & Md Cp Eq R-2 (RMDEX)
There are 4 members of the management team with an average tenure of 1.33 years: Matt Hochstetler (2024), Roz Hongsaranagon (2024), Andraz Razen (2024), M Taylor Hinshaw (2026). Management tenure is more important for actively managed funds than passive index funds.
American Funds U.S. Sm & Md Cp Eq R-2 has 183 securities in its portfolio. The top 10 holdings constitute 16.7% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
American Funds U.S. Sm & Md Cp Eq R-2 is part of the Equity global asset class and is within the U.S. Equity fund group. American Funds U.S. Sm & Md Cp Eq R-2 has 2.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 93.1%. There is 2.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). American Funds U.S. Sm & Md Cp Eq R-2 has 4.9% of the portfolio in cash.
Assets Under Management
The fund has $12 million in total assets, which is below the $1 billion average for the Mid-Cap Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
RMDEX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The American Funds U.S. Sm & Md Cp Eq R-2 expense ratio is high compared to funds in the Mid-Cap Blend category. American Funds U.S. Sm & Md Cp Eq R-2 has an expense ratio of 1.61%, which is 65% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. American Funds U.S. Sm & Md Cp Eq R-2 has a portfolio turnover rate of 28%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 51% for the Mid-Cap Blend category.
Recently, in the month of July 2026, American Funds U.S. Sm & Md Cp Eq R-2 returned -3.2%, which earned it a grade of D, as the Mid-Cap Blend category had an average return of -1.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
American Funds U.S. Sm & Md Cp Eq R-2 has a trailing yield of 0.40%, which is below the 0.48% category average. The fund normally distributes its income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
American Funds U.S. Sm & Md Cp Eq R-2 Grades
Year to date, the fund has returned 9.3%, 3.7 percentage points worse than the category, which translates into a grade of D. The fund has returned 14.8% over the past year (grade of D).
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RMDEX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| RMDEX Return (NAV) | -3.2% | 1.7% | 14.8% | na | na | na |
| RMDEX Grade | D | D | D | na | na | na |
| +/- Category | -1.4% | -2.1% | -3.0% | na | na | na |
| Mid-Cap Blend Avg | -1.8% | 3.9% | 17.8% | 12.7% | 7.6% | 10.3% |
| RMDEX Tax Cost Ratio | na | na | 0.2% | na | na | na |
RMDEX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| RMDEX Return (NAV) | 9.3% | 14.9% | na | na | na | na | na | na | na | na | na |
| RMDEX Grade | D | A | na | na | na | na | na | na | na | na | na |
| +/- Category | -3.7% | 7.0% | na | na | na | na | na | na | na | na | na |
| Mid-Cap Blend Avg | 13.0% | 7.9% | 13.5% | 16.4% | -15.1% | 24.3% | 13.3% | 28.5% | -10.3% | 16.1% | 14.6% |
| Risk Measures | |
| Standard Deviation: | na |
| Total Risk Index: | na |
| Category Risk Index: | na |
| Category Risk Grade: | |
| Beta: | na |
| R-Squared: | na |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Mid-Cap Growth |
| Bond Investment Style: | na |
| Yield: | 0.4% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $733 Mil |
| Fund Total Assets: | $ 0 Mil |
| Share Class Type: | Retirement |
| Portfolio Turnover: | 28% |
Management Team
| Number of Managers: 4 | |||
| Longest Tenure: 1.6 years | |||
| Average Tenure: 1.3 years | |||
| Managers (Year): Hochstetler Matt (2024), Hongsaranagon Roz (2024), Razen Andraz (2024), Hinshaw M Taylor (2026) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 183 |
| % in Top 10 Holdings: | 16.7% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 2.0% |
Portfolio Allocation |
|
| Domestic Stock: | 93.1% |
| Foreign Stock: | 2.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 4.9% |
Purchase Information
| Fund Family: | Capital Group |
| Phone Number: | 800-421-4225 |
| Website: |
| Status: | Closed |
| Inception Date: | September 27, 2024 |
| Min. Initial Purchase: | $ 250 |
| Min. Initial IRA Purchase: | $ 25 |
| True No-Load: | No |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.75% |
Expenses and Fees | |
| Expense Ratio (%): | 1.61% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.98% |
| Share Class: | American Funds U.S. Sm & Md Cp Eq R-6 |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 0 |
