Fund Evaluator:
American Funds Tax-Exempt Bond A (AFTEX)
Follow This Fund
Best Performing in Muni National Interm Over the Last Year
| 8.4% | Sit Tax-Free Income (SNTIX) |
| 5.6% | Putnam Strategic Intermediate Muncpl Y (PAMYX) |
| 5.5% | Goldman Sachs Dynamic Municipal Inc Inv (GUIRX) |
| 5.3% | Victory Tax Exempt Intermediate-Term (USATX) |
| 5.2% | Vanguard Tax-Exempt Bond Index Admiral (VTEAX) |
Fund Details
American Funds Tax-Exempt Bond A Overview
American Funds Tax-Exempt Bond A (AFTEX) is an actively managed Municipal Bond Muni National Interm fund. Capital Group launched the fund in 1979.
The investment seeks a high level of current income exempt from federal income tax, consistent with the preservation of capital. 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. It will not invest in securities that subject the investors to federal alternative minimum tax. It invests at least 65% in debt securities rated A- or better or A3 or better by Nationally Recognized Statistical Rating Organizations designated by the fund's investment adviser, or unrated but determined by the fund's investment adviser to be of equivalent quality.
About American Funds Tax-Exempt Bond A (AFTEX)
There are 3 members of the management team with an average tenure of 11.67 years: Karl Zeile (2003), Courtney Wolf (2020), Lee Chu (2019). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: Bloomberg Municipal TR USD index with a weighting of 100%. American Funds Tax-Exempt Bond A has 5422 securities in its portfolio. The top 10 holdings constitute 3.7% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
American Funds Tax-Exempt Bond A is part of the Fixed Income global asset class and is within the Municipal Bond fund group. American Funds Tax-Exempt Bond A has 1.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 99.2% (97.5% domestic bond, 1.7% foreign bond and 0.0% convertible bond). American Funds Tax-Exempt Bond A has 0.8% of the portfolio in cash.
Assets Under Management
The fund has $11 billion in total assets, which is above the $1 billion average for the Muni National Interm category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
AFTEX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The American Funds Tax-Exempt Bond A expense ratio is average compared to funds in the Muni National Interm category. American Funds Tax-Exempt Bond A has an expense ratio of 0.55%, which is 19% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. American Funds Tax-Exempt Bond A has a portfolio turnover rate of 56%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 39% for the Muni National Interm category.
Recently, in the month of July 2026, American Funds Tax-Exempt Bond A returned -1.7%, which earned it a grade of D, as the Muni National Interm category had an average return of -1.6%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
American Funds Tax-Exempt Bond A has a trailing yield of 3.06%, which is below the 3.27% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
American Funds Tax-Exempt Bond A Grades
Year to date, the fund has returned 0.5%, 0.1 percentage points better than the category, which translates into a grade of B. The fund has returned 5.3% over the past year (grade of A), 3.4% over the past three years (grade of B) and 0.6% per year over the past five years (grade of C) and 1.9% per year over the past 10 years (grade of B).
For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about American Funds Tax-Exempt Bond A, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
AFTEX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| AFTEX Return (NAV) | -1.7% | -0.4% | 5.3% | 3.4% | 0.6% | 1.9% |
| AFTEX Grade | D | B | A | B | C | B |
| +/- Category | -0.1% | 0.1% | 0.7% | 0.2% | -0.0% | 0.2% |
| Muni National Interm Avg | -1.6% | -0.5% | 4.6% | 3.2% | 0.6% | 1.7% |
| AFTEX Tax Cost Ratio | na | na | 0.0% | 0.0% | 0.0% | 0.0% |
AFTEX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| AFTEX Return (NAV) | 0.5% | 3.8% | 2.3% | 6.5% | -9.2% | 2.0% | 4.7% | 7.2% | 0.8% | 5.5% | 0.3% |
| AFTEX Grade | B | D | B | A | D | B | B | B | C | B | A |
| +/- Category | 0.1% | -0.4% | 0.3% | 0.7% | -0.9% | 0.3% | 0.4% | 0.5% | -0.0% | 0.8% | 0.5% |
| Muni National Interm Avg | 0.4% | 4.2% | 2.0% | 5.8% | -8.2% | 1.7% | 4.3% | 6.7% | 0.8% | 4.7% | -0.2% |
| Risk Measures | |
| Standard Deviation: | 5.3% |
| Total Risk Index: | 0.43 - Low |
| Category Risk Index: | 1.11 - High |
| Category Risk Grade: | F (81% Rank) |
| Beta: | 0.92 |
| R-Squared: | 99% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 3.1% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $24950 Mil |
| Fund Total Assets: | $11,821 Mil |
| Share Class Type: | A |
| Portfolio Turnover: | 56% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 22.6 years | |||
| Average Tenure: 11.7 years | |||
| Managers (Year): Zeile Karl (2003), Chu Lee (2019), Wolf Courtney (2020) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 5422 |
| % in Top 10 Holdings: | 3.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 1.7% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 97.5% |
| Foreign Bond: | 1.7% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.8% |
Purchase Information
| Fund Family: | Capital Group |
| Phone Number: | 800-421-4225 |
| Website: | www.americanfunds.com |
| Status: | Open |
| Inception Date: | October 3, 1979 |
| Min. Initial Purchase: | $ 250 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | No |
| Front Load Maximum: | 3.75% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.25% |
Expenses and Fees | |
| Expense Ratio (%): | 0.55% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.68% |
| Share Class: | American Funds Tax-Exempt Bond A |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 0 |
