Fund Evaluator:
American Funds Corporate Bond 529-A (COBAX)
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Best Performing in Corporate Bond Over the Last Year
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| -0.5% | Vanguard Interm-Term Corp Bd Idx Admiral (VICSX) |
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Fund Details
American Funds Corporate Bond 529-A Overview
American Funds Corporate Bond 529-A (COBAX) is an actively managed Taxable Bond Corporate Bond fund. Capital Group launched the fund in 2016.
The investment seeks to provide maximum total return consistent with capital preservation and prudent risk management. The fund seeks to provide maximum total return consistent with capital preservation and prudent risk management by investing primarily in investment-grade corporate debt securities, such as bonds. Normally, at least 80% of the fund’s assets will be invested in corporate debt securities. The fund may invest significantly in debt securities tied economically to countries outside the United States, including developing countries. All securities held by the fund will be denominated in U.S. dollars.
About American Funds Corporate Bond 529-A (COBAX)
There are 4 members of the management team with an average tenure of 2.75 years: Scott Sykes (2018), Robert Caldwell (2024), Mital Kotecha (2026), Kevin Swick (2026). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg U.S. Corp Invst Grade TR USD index with a weighting of 100%. American Funds Corporate Bond 529-A has 838 securities in its portfolio. The top 10 holdings constitute 8.6% 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 Corporate Bond 529-A is part of the Fixed Income global asset class and is within the Taxable Bond fund group. American Funds Corporate Bond 529-A has 10.1% 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 0.1% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 95.8% (85.7% domestic bond, 10.1% foreign bond and 0.0% convertible bond). American Funds Corporate Bond 529-A has 4.2% of the portfolio in cash.
Assets Under Management
The fund has $57 million in total assets, which is below the $694 million average for the Corporate Bond 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.
COBAX 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 Corporate Bond 529-A expense ratio is above average compared to funds in the Corporate Bond category. American Funds Corporate Bond 529-A has an expense ratio of 0.70%, which is 4% 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 Corporate Bond 529-A has a portfolio turnover rate of 226%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 122% for the Corporate Bond category.
Recently, in the month of October 2026, American Funds Corporate Bond 529-A returned 1.7%, which earned it a grade of D, as the Corporate Bond category had an average return of 1.9%. 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 Corporate Bond 529-A has a trailing yield of 3.97%, which is below the 4.46% 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 Corporate Bond 529-A Grades
Year to date, the fund has returned -2.1%, 0.6 percentage points worse than the category, which translates into a grade of F. The fund has returned -1.9% over the past year (grade of F), 5.4% over the past three years (grade of F) and -0.9% per year over the past five years (grade of F) and 1.9% per year over the past 10 years (grade of D).
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COBAX Trailing NAV Total Returns Data as of 10/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| COBAX Return (NAV) | 1.7% | -0.9% | -1.9% | 5.4% | -0.9% | 1.9% |
| COBAX Grade | D | F | F | F | F | D |
| +/- Category | -0.2% | -0.3% | -0.8% | -0.7% | -0.7% | -0.3% |
| Corporate Bond Avg | 1.9% | -0.6% | -1.1% | 6.1% | -0.2% | 2.2% |
| COBAX Tax Cost Ratio | na | na | 1.6% | 1.6% | 1.4% | 1.3% |
COBAX Annual NAV Total ReturnsData as of 10/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| COBAX Return (NAV) | -2.1% | 6.6% | 1.7% | 7.4% | -16.0% | -2.1% | 13.1% | 13.4% | -2.5% | 5.5% | 6.9% |
| COBAX Grade | F | F | F | F | C | F | A | D | B | F | C |
| +/- Category | -0.6% | -0.8% | -1.0% | -0.8% | -0.3% | -1.2% | 3.0% | -0.6% | 0.4% | -0.9% | 0.1% |
| Corporate Bond Avg | -1.5% | 7.4% | 2.7% | 8.2% | -15.7% | -1.0% | 10.1% | 13.9% | -2.9% | 6.3% | 6.9% |
| Risk Measures | |
| Standard Deviation: | 6.2% |
| Total Risk Index: | 0.51 - Below Average |
| Category Risk Index: | 1.03 - Average |
| Category Risk Grade: | C (50% Rank) |
| Beta: | 1.08 |
| R-Squared: | 97% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 4.0% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $1783 Mil |
| Fund Total Assets: | $ 58 Mil |
| Share Class Type: | A |
| Portfolio Turnover: | 226% |
Management Team
| Number of Managers: 4 | |||
| Longest Tenure: 8.8 years | |||
| Average Tenure: 2.7 years | |||
| Managers (Year): Sykes Scott (2018), Caldwell Robert (2024), Kotecha Mital (2026), Swick Kevin (2026) | |||
Portfolio Composition (as of 9/30/26)
| # of Holdings: | 838 |
| % in Top 10 Holdings: | 8.6% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 10.1% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.1% |
| Domestic Bond: | 85.7% |
| Foreign Bond: | 10.1% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 4.2% |
Purchase Information
| Fund Family: | Capital Group |
| Phone Number: | 800-421-4225 |
| Website: |
| Status: | Open |
| Inception Date: | July 29, 2016 |
| Min. Initial Purchase: | $ 250 |
| Min. Initial IRA Purchase: | $ 25 |
| True No-Load: | No |
| Front Load Maximum: | 3.50% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.23% |
Expenses and Fees | |
| Expense Ratio (%): | 0.70% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 0.73% |
| Share Class: | American Funds Corporate Bond A |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 25 |
