American Funds Short-Term Tax-Exempt Bd Fd Cl F-1 Shs

Frequently Asked Questions About FSTTX

What does FSTTX invest in?

The fund will invest at least 80% of its assets in, or derive at least 80% of its income from, securities that are exempt from regular federal income tax and that do not subject the investors to federal alternative minimum tax. The fund invests primarily in debt securities rated AA- or better or Aa3 or better, or unrated but determined by the fund's investment adviser to be of equivalent quality. Its aggregate portfolio will have a dollar-weighted average effective maturity no greater than three years.

What is the expense ratio of FSTTX?

American Funds Short-Term Tax-Exempt Bd Fd Cl F-1 Shs (FSTTX) charges an expense ratio of 0.62%. This is the annual fee deducted from fund assets to cover management and operations.

What is FSTTX's dividend yield?

FSTTX's trailing-twelve-month yield is 2.60%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of FSTTX?

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

What is the credit quality of FSTTX?

FSTTX'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 FSTTX?

Yield to maturity (YTM) is the total return you'd earn from FSTTX if every bond in the portfolio is held to maturity at the current price. FSTTX'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.