- What does AFTFX invest in?
- The fund's core investment strategy involves dedicating at least 80% of its assets, or generating a minimum of 80% of its income, from securities that are exempt from regular federal income tax. It specifically avoids investments that would expose shareholders to the federal Alternative Minimum Tax (AMT). Additionally, a substantial portion—at least 65%—of the portfolio will be comprised of high-quality debt instruments. These must carry credit ratings of 'A-' or better (or 'A3' or higher) from nationally recognized statistical rating organizations designated by the investment adviser, or be unrated but deemed by the adviser to possess equivalent creditworthiness.
- What is the expense ratio of AFTFX?
- American Funds Tax-Exempt Bond Fund of America;F1 (AFTFX) charges an expense ratio of 0.63%. This is the annual fee deducted from fund assets to cover management and operations.
- What is AFTFX's dividend yield?
- AFTFX's trailing-twelve-month yield is 2.98%, calculated from the sum of dividends over the past year divided by the current price.
- What is the duration of AFTFX?
- Effective duration measures AFTFX's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. AFTFX's current duration is published on the fund's factsheet on the issuer's website.
- What is the credit quality of AFTFX?
- AFTFX'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 AFTFX?
- Yield to maturity (YTM) is the total return you'd earn from AFTFX if every bond in the portfolio is held to maturity at the current price. AFTFX'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.
