American Funds Tax-Exempt Fund of CA Cl F-1 Shs

Frequently Asked Questions About TECFX

What does TECFX invest in?

This fund is designed to achieve its investment goals primarily by allocating capital to municipal debt instruments originating from the State of California, its various agencies, and local government bodies. While its core focus remains within California, the portfolio also possesses the flexibility to acquire municipal securities issued by jurisdictions beyond the state's borders. A key mandate for the fund is to ensure that a minimum of 80% of its total assets, or the income generated from them, comes from securities that are exempt from both standard federal and California state income taxes, and which, importantly, do not expose investors to the federal Alternative Minimum Tax (AMT).

What is the expense ratio of TECFX?

American Funds Tax-Exempt Fund of CA Cl F-1 Shs (TECFX) charges an expense ratio of 0.66%. This is the annual fee deducted from fund assets to cover management and operations.

What is TECFX's dividend yield?

TECFX's trailing-twelve-month yield is 3.10%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of TECFX?

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

What is the credit quality of TECFX?

TECFX'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 TECFX?

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