American Funds U.S. Government Money Market Fund Class A

Frequently Asked Questions About AFAXX

What does AFAXX invest in?

Money market mutual fund seeking income with capital preservation and liquidity. Invests at least 99.5% of assets in cash, U.S. Treasury securities, other U.S. government and agency securities, and fully collateralized repurchase agreements; at least 80% in U.S. government securities and related repurchase agreements. Targets low-risk cash management investors.

What is the expense ratio of AFAXX?

American Funds U.S. Government Money Market Fund Class A (AFAXX) charges an expense ratio of 0.49%. This is the annual fee deducted from fund assets to cover management and operations.

What is the duration of AFAXX?

Effective duration measures AFAXX's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. AFAXX's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of AFAXX?

AFAXX's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of AFAXX?

Yield to maturity (YTM) is the total return you'd earn from AFAXX if every bond in the portfolio is held to maturity at the current price. AFAXX's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.

How big is AFAXX?

American Funds U.S. Government Money Market Fund Class A (AFAXX) manages $34.81B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.