Back to top

Is American Funds Tax-Exempt Bond A Fund (AFTEX) Worth Another Look?

Read MoreHide Full Article

American Funds Tax-Exempt Bond A (AFTEX - Free Report) a Zacks Ranked #2 (Buy) was incepted in October 1979 and is managed by Capital Research and Management Company. AFTEX's main objective is to provide a high level of current income exempt from federal taxes, consistent with the preservation of capital. AFTEX primarily invests in state, municipal and public authority bonds and notes. AFTEX normally invests major portion of its assets in tax-exempt securities, and at least 65% of assets in tax-exempt securities rated in the three highest categories at the time of purchase. AFTEX emphasizes quality-oriented municipal securities and has the flexibility to invest anywhere in the United States, providing the opportunity to spread risks and enhance returns over time. AFTEX may also invest a maximum of 35% of assets in lower rated securities.

The American Funds Tax-Exempt Bond A, managed by American Funds , carries an expense ratio of 0.55. Moreover, AFTEX requires a minimal initial investment of $250.

AFTEX has a history of positive total returns for over 10 years. Specifically, the fund’s returns over the 1, 3, 5 year benchmarks; 1 year 6.95%, 3 year 4.63%, and 5 year 5.44%. To see how this fund performed compared in its category, please click here.

AFTEX’s performance, as of the last filing, when compared to funds in its category was in the top 34% in 1 year, top 23% over the past 3 years, and in the 26% over the past 5 years.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Pick the best mutual funds with the Zacks Rank.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


American Funds T/E Bd of America A (AFTEX) - free report >>

More from Zacks Best of Funds

You May Like

Published in