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

Updated: Last Tuesday
40
Bull Case
  • 3-year return above the benchmark
  • 5-year return above the benchmark
Bear Case
  • Low net assets
  • High expense ratio
  • Sales load and/or distribution fees

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

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

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

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

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

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

Fact Sheet

1. Describe American Funds Corporate Bond Fund; Class A Shares (BFCAX).

The Fund seeks to provide maximum total return consistent with capital preservation and prudent risk management. The Fund would invest at least 80% of its assets in corporate debt securities. The Fund will also normally invest all of its assets in debt securities with quality ratings of Baa3 or better or BBB- or better.

2. What are BFCAX top holdings?

BFCAX has 0 stock holdings and 805 bond holdings.

The top 10 holdings represent 11.65% of total assets. Here are the top holdings:

Name Symbol % Assets
United States Treasury Bonds 2.38% N/A 2.79%
Bank of America Corporation 2.5% N/A 1.31%
Goldman Sachs Group, Inc. 3.8% N/A 1.26%
United States Treasury Notes 1.5% N/A 1.10%
Takeda Pharmaceutical Company Limited 4.4% N/A 1.07%
Credit Suisse Group AG 4.19% N/A 0.98%
Becton, Dickinson and Company 3.7% N/A 0.90%
Broadcom Corp 4.75% N/A 0.75%
Wells Fargo & Company 5.01% N/A 0.75%
Edison International 4.12% N/A 0.74%

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

BFCAX has generated the following returns:

  • 1-month return is 0.13%;
  • 3-month return is -1.35%;
  • 1-year return is 11.92%;
  • 3-year return is 7.26%;
  • 5-year return is 6.41%.

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

In the last 10 years, BFCAX had 8 up years and 2 down years.

BFCAX up and down years

5. What is BFCAX dividend yield?

BFCAX yield is 1.85%.

6. What is BFCAX minimum initial investment amount?

BFCAX minimum initial investment amount is $1.00K.

7. What is BFCAX expense ratio?

BFCAX expense ratio is 0.85%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

BFCAX expenses

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

BFCAX 12b-1 distribution fee is 0.3. BFCAX front-end sales load is 3.75. BFCAX back-end sales load is 0.

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

  • 1-year ax cost ratio is 1.24%;
  • 3-year ax cost ratio is 1.15%.
BFCAX tax costs

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

  • 3-year beta is 1.38;
  • 5-year beta is 1.33.
BFCAX Beta

11. What is BFCAX Sharpe ratio?

  • 3-year Sharpe ratio is 1.01;
  • 5-year Sharpe ratio is 1.10.
BFCAX Sharpe ratio

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 40. Our quantitative analysis shows 2 reasons to buy and 3 reasons to sell it, resulting in the Finny Score of 40.

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

The following are BFCAX strengths from our perspective:

  • <strong>BFCAX 3-year return</strong> is 7.26%, which is higher than the 3-year return of the benchmark index (Bloomberg Barclays US Corporate Bond TR USD), 6.55%.
  • <strong>BFCAX 5-year return</strong> is 6.41%, which is higher than the 5-year return of the benchmark index (Bloomberg Barclays US Corporate Bond TR USD), 5.81%.

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

The following are BFCAX weaknesses from our perspective:

  • <strong>BFCAX net assets</strong> are $986.10 million. This fund is not a popular choice with retail investors.
  • <strong>BFCAX expense ratio</strong> is 0.85%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • Warning: this fund has a 12b1 and front-end sales fee. The maximum 12b1 fee is 0.3%, while the maximum front-end sales load is 3.75%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. Front-end sales load, also known as sales charge, is a fee paid when mutual funds shares are purchased. Those fees are subtracted from your total investable assets.
In the BFCAX review, we covered BFCAX 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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