American Funds Mortgage F1

Frequently Asked Questions About MFAEX

What does MFAEX invest in?

This fund typically allocates at least 80% of its total assets to investments connected to mortgages. These include debt instruments collateralized by mortgage loans and contracts for their future delivery, such as "to be announced" (TBA) contracts and mortgage dollar rolls. The portfolio's main emphasis is on mortgage-related securities either sponsored or guaranteed by the U.S. government. This encompasses securities issued by government-sponsored enterprises (GSEs), even those not explicitly backed by the full faith and credit of the U.S. government, as well as mortgage securities from private issuers.

What is the expense ratio of MFAEX?

American Funds Mortgage F1 (MFAEX) charges an expense ratio of 0.62%. This is the annual fee deducted from fund assets to cover management and operations.

What is MFAEX's dividend yield?

MFAEX's trailing-twelve-month yield is 4.14%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of MFAEX?

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

What is the credit quality of MFAEX?

MFAEX'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 MFAEX?

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