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15 important things you should know about American Funds AFFMX mutual fund

Updated: September 18, 2020
75
Bull Case
  • 3-year return above the benchmark
  • 5-year return above the benchmark
  • No sales load or distribution fees
Bear Case
  • Low net assets

Before we start: if you’re looking for AFFMX “stock” price, you can quickly find it out by visiting Finny and typing "AFFMX quote". If you’re looking for a quick scoop on AFFMX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "AFFMX". You’ll get all this info in one place.

Are you looking to buy or sell AFFMX? Or perhaps you’re looking for AFFMX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this AFFMX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: AFFMX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: AFFMX buy or sell; the pros and cons of investing in AFFMX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to AFFMX.

And here is the list of questions we’ll answer:

  1. Describe American Funds Mortgage Fund; Class F-3 Shares (AFFMX).
  2. What are AFFMX holdings?
  3. What is AFFMX performance? What are AFFMX historical returns?
  4. How many up and down years did AFFMX have historically?
  5. What is AFFMX dividend yield?
  6. What is AFFMX minimum initial investment amount?
  7. What is AFFMX expense ratio?
  8. Does AFFMX have any sales loads or 12b-1 distribution expenses?
  9. What is AFFMX tax efficiency (tax-cost ratio)?
  10. What is AFFMX beta? How would you assess AFFMX risk?
  11. What is AFFMX Sharpe ratio?
  12. What is AFFMX Finny Score? AFFMX buy or sell?
  13. What are the pros of investing in AFFMX? What are AFFMX buy reasons?
  14. What are the cons of investing in AFFMX? What are AFFMX sell reasons?

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe American Funds Mortgage Fund; Class F-3 Shares (AFFMX).

The Fund seeks current income and preservation of capital. At least 80% of the funds assets will be invested in mortgage-related securities, including contracts for future delivery of such securities (such as to be announced contracts and mortgage dollar rolls) and other securities collateralized by mortgage loans.

2. What are AFFMX top holdings?

AFFMX has 0 stock holdings and 427 bond holdings.

The top 8 holdings represent 22.65% of total assets. Here are the top holdings:

Name Symbol % Assets
Federal National Mortgage Association 3.5% N/A 6.46%
Federal National Mortgage Association 2% N/A 4.98%
Federal National Mortgage Association 4.5% N/A 2.59%
Federal National Mortgage Association 3% N/A 1.85%
Federal Home Loan Mortgage Corporation 3% N/A 1.84%
Federal Home Loan Mortgage Corporation 3.5% N/A 1.70%
Federal Home Loan Mortgage Corporation N/A 1.62%
Government National Mortgage Association 4% N/A 1.61%

3. What is AFFMX performance? What are AFFMX historical returns?

AFFMX has generated the following returns:

  • 1-month return is -0.03%;
  • 3-month return is 0.97%;
  • 1-year return is 6.51%;
  • 3-year return is 3.88%;
  • 5-year return is 3.38%.

4. How many up and down years did AFFMX have historically?

In the last 10 years, AFFMX had 9 up years and 1 down year. See Performances

5. What is AFFMX dividend yield?

AFFMX yield is 2.57%.

6. What is AFFMX minimum initial investment amount?

AFFMX minimum initial investment amount is N/A.

7. What is AFFMX expense ratio?

AFFMX expense ratio is 0.29%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses. See Expenses

8. Does AFFMX have any sales loads or 12b-1 distribution expenses?

AFFMX 12b-1 distribution fee is 0. AFFMX front-end sales load is 0. AFFMX back-end sales load is 0.

9. What is AFFMX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 1.03%;
  • 3-year ax cost ratio is 0.98%.

See Taxes

10. What is AFFMX beta? How would you assess AFFMX risk?

  • 3-year beta is 0.58;
  • 5-year beta is 0.56.

See Risks

11. What is AFFMX Sharpe ratio?

  • 3-year Sharpe ratio is 0.92;
  • 5-year Sharpe ratio is 1.04.

See Risks

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 75. Our quantitative analysis shows 3 reasons to buy and 1 reason to sell it, resulting in the Finny Score of 75.

13. What are the pros of investing in AFFMX? What are AFFMX buy reasons?

The following are AFFMX strengths from our perspective:

  • <strong>AFFMX 3-year return</strong> is 3.88%, which is higher than the 3-year return of the benchmark index (Bloomberg Barclays US MBS TR USD), 3.67%.
  • <strong>AFFMX 5-year return</strong> is 3.38%, which is higher than the 5-year return of the benchmark index (Bloomberg Barclays US MBS TR USD), 3.08%.
  • Good news: this fund does not have 12b1, front-end or back-end sales fees.

14. What are the cons of investing in AFFMX? What are AFFMX negatives?

The following are AFFMX weaknesses from our perspective:

  • <strong>AFFMX net assets</strong> are $19.50 million. This fund is not a popular choice with retail investors.
In the AFFMX review, we covered AFFMX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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